Description of the case
Acting in accordance with the Regulations of the Exchange Clearing House (Commodity Market), due to justified risk of one of the Clearing House's Members losing its ability to fulfill obligations provided for in the Regulations, the IRGiT S.A. (“IRGiT”, “Clearing House”), taking into consideration necessity to ensure safety of the settlements, made prompt decision to announce an Event of Default on the day of April the 26th 2022 and to close all open positions.
The positions were closed directly on the market, while ensuring high standard and efficiency of the process.
As a result of closing of all open positions of the Clearing House Member, against which the Event of Default has been established, no loss has occurred on that entity's portfolio, i.e. the value of financial settlements was lower than the funds deposited by this Clearing House Member in the clearing guarantee system. In connection with the foregoing there were the pre-condition for using resources of other Clearing House Members paid into the Guarantee Fund has not been fulfilled, in accordance with § 43 subparagraph 1 of the Regulations of the Exchange Clearing House (Commodity Market).
Below we publish contents of the operational reports concerning the process described above.
Reports
Report of 26 April 2022 on default of a Clearing House Member