Cash settlement

In the Settlement Bank, the Clearing House keeps the collateral margin bank account and the transaction margin bank account. IRGiT Members are obliged to maintain sufficient funds (designated for required margins) in the sub-accounts dedicated to them.

Clearing House Members keep a clearing bank account in the Clearing Bank selected by them. This is an account credited and debited in the transaction clearing process – both as a result of payments for deliveries of exchange commodities and updates of the required collateral margins. The Clearing House does not monitor balances of the clearing bank accounts of the Clearing House Members, so IRGiT’s clients are obliged to keep sufficient funds in the accounts to cover any liabilities when they arise.

The cash settlement process consists of the settlement of liabilities and receivables associated with deliveries of exchange commodities and updates of the required collateral margins. The payment orders generated by the Clearing House are executed by the Clearing Bank in accordance with the settlement schedule available in the Detailed Clearing and Settlement Rules of the Exchange Clearing House and the Detailed Clearing Rules for the Agricultural Commodity Market.