Non-cash collaterals

Emission allowances

IRGiT accepts CO2 emission allowances (EUAs) as non-cash collateral.

• The percentage up to which EUAs may cover required collateral margin amount is specified in the communication. The communication is available in the "Parameters" tab. The surplus is not allocated for the coverage of the remaining elements of the clearing guarantee system.

• EUAs are contributed on the basis of a security transfer agreement pertaining to Emission Allowances and after they are credited to the Clearing House’s account in the Union Registry. 

• IRGiT applies the haircuts, which are presented in the “Parameters” tab.

• IRGiT applies concentration limits of 15,000,000 EUAs per Clearing House Member and 50,000,000 EUAs globally.

• The security transfer agreement pertaining to Emission Allowances must be consistent with the form of the agreement made available by IRGiT (only the Polish versions of the documents made available by IRGiT are legally binding and accepted).

• The Clearing House Member is obliged to provide it with draft documents pertaining to the collateral being submitted for review and final approval by the Clearing House.

Change in the allocation of Emission allowances (EUA) dedicated to the collateral margin:

• between entities within the same Energy Group, the allocation of Emission allowances is effected on the same business day if the Emission allowances is not recognized on the collateral margin. Otherwise, the allocation is effected on the next business day after the amount of Emission allowances is removed from the collateral margin,
• between clients of the same Clearing House Member’s, the allocation of Emission allowances is effected on the same business day.

The detailed criteria for accepting Emission Allowances as non-cash collateral are provided in the chapter entitled “Non-Cash Collateral Register” in the Detailed Clearing and Settlement Rules of the Exchange Clearing House.

Property rights

IRGiT accepts Property Rights to a PMOZE_A instrument as non-cash collateral. 

• The percentage up to which Property Rights may cover the required collateral margin amount is specified in the communication. The communication is available in the "Parameters" tab. The surplus is not allocated for the coverage of the remaining elements of the clearing guarantee system.

• Property Rights are contributed on the basis of a security transfer agreement pertaining to Property Rights under Certificates of Origin and an application to lock the Property Rights in the Certificates of Origin Register.

• The Clearing House applies the haircuts, which are presented in the “Parameters” tab.

• The Clearing House applies concentration limits of 240,000 MWh per Clearing House Member and 3,000,000 MWh globally.

• The security transfer agreement pertaining to Property Rights must be consistent with the form of the agreement made available by IRGiT (only the Polish versions of the documents made available by IRGiT are legally binding and accepted).

• The Clearing House Member is obliged to provide IRGiT with draft documents pertaining to the collateral being submitted for review and final approval.

Change in the allocation of Property rights dedicated to the collateral margin:

• between entities within the same Energy Group, the allocation of Property rights is effected on the same business day if the Property rights is not recognized on the collateral margin. Otherwise, the allocation is effected on the next business day after the amount of Property rights is removed from the collateral margin,
• between clients of the same Clearing House Member’s, the allocation of Property rights is effected on the same business day.

The detailed criteria for accepting Property Rights as non-cash collateral are provided in the chapter entitled “Non-Cash Collateral Register” in the Detailed Clearing and Settlement Rules of the Exchange Clearing House.

Euro currency

IRGiT accepts the euro as non-cash collateral.

• The percentage up to which Euro currency may cover the required collateral margin amount is specified in the communication. The communication is available in the "Parameters" tab. The surplus is not allocated for the coverage of the remaining elements of the clearing guarantee system.

• Euro currency is transferred to a dedicated account at Bank Gospodarstwa Krajowego, owned by IRGiT.

• Euro currency is subject to market valuation on each business day at the average exchange rate published by the National Bank of Poland, taking into account the reduction rates that are available in the "Parameters” tab.

• The Clearing House applies concentration limits of 150 million per Clearing House Member and 600 million globally.

• The minimum value of collateral that may be submitted in EUR is EUR 100 000.

• Changes regarding the amount of collateral, i.e. depositing, increasing, decreasing and withdrawing the euro currency, require the consent of IRGiT:

  • IRGiT may refuse to transfer a specific value of the euro currency in the event of failure to cover the collateral margin required from the Clearing House Member on the date of reduction or withdrawal of the euro currency,

  • the increase in the euro currency takes place after the funds are credited to the bank account, if the funds were credited to the account by 2:30 p.m. Otherwise, the increase in the euro currency is made on the next business day following that day.

  • Clearing House Member

    1. the reduction and withdrawal of the euro currency from the Non Cash Register takes place two business days before the planned return of the euro currency, provided that the required funds for collateral margin are replenished.

  • Clients of Brokerage Houses who signed a surety agreement with IRGiT

    1. the reduction and withdrawal of the euro currency from the Non Cash Register takes place five business days before the planned return of the euro currency, provided that IRGiT does not receive information from the Brokerage Houses about problems with replenishing the required funds for collateral margin.

1. Bank charges

   1. banking costs related to maintaining the account are borne by the Clearing House Member on the terms specified in the schedule of fees and commissions by Bank Gospodarstwa Krajowego,

   2. bank costs are charged directly from the bank account, which will result in a reduction in the euro currency balance in the bank account,

   3. if there are no funds in the bank account needed to maintain it, IRGiT may take action to immediately close the account and call on the House Member to pay the additional amount.

Change in the allocation of euro currency dedicated to the collateral margin:

• between entities within the same Energy Group, the allocation of euro currency is effected on the same business day if the euro currency is not recognized on the collateral margin. Otherwise, the allocation is effected on the next business day after the removal of the euro currency,
• between clients of the same Clearing House Member’s, the allocation of euro currency is effected on the same business day.

Anti-crisis shield

Non-cash collateral accepted until 31 December 2026

Due to the entry into force of the amendments to the Act of March 2, 2020 on special solutions related to the prevention, prevention and combating of COVID-19, other infectious diseases and crisis situations caused by them (Journal of Laws of 2020, item 1842 as amended) (Ustawa o szczególnych rozwiązaniach związanych z zapobieganiem, przeciwdziałaniem i zwalczaniem COVID-19, innych chorób zakaźnych oraz wywołanych nimi sytuacji kryzysowych (Dz. U. z 2020 r. poz. 1842 z późn. zm.) (the "Act"), consisting the extension in sec. 8 in Art. 31zzh of the Act, the effective date of the solutions to 31 December 2026 and the Act on special solutions to protect electricity consumers in 2023 in connection with the situation on the electricity market (Ustawa o szczególnych rozwiązaniach służących ochronie odbiorców energii elektrycznej w 2023 roku w związku z sytuacją na rynku energii elektrycznej) IRGiT will accept additional forms of non-cash collateral, i.e .:

• a surety of a company from a capital group which is a parent undertaking within the meaning of Art. 4 point 3 of the Act of February 16, 2007 on competition and consumer protection and having a credit rating specified in the Act within the meaning of Art. 3 point 1 lit. a Regulation (EC) No. 1060/2009 of the European Parliament and of the Council of September 16, 2009 on credit rating agencies (Journal of Laws UE L 302 of November 17, 2009, p. 1, as amended), which until the surety agreement was accompanied by a bank guarantee or a declaration made in the form of a notarial deed on submission to enforcement pursuant to Art. 777 § 1 point 5 of the Code of Civil Procedure;

• a declaration made in the form of a notarial deed on submission to enforcement pursuant to Art. 777 § 1 point 5 of the Code of Civil Procedure by a Clearing House Member with an appropriate credit rating or Clearing House Member who perform on 27 September 2022 the obligation referred to in Article 49a (1) of the Energy Law Act.

Until December 31, 2026, the quantitative limits limiting the possibility of contributing Property Rights to certificates of origin and CO2 Emission Allowances as non-cash collateral by entities with an appropriate credit rating or belonging to a capital group with such a credit rating will also apply.

Change in the allocation of the amount resulting from declaration made in the form of a notarial deed on submission to enforcement pursuant to Art. 777 § 1 point 5 of the Code of Civil Procedure (777) :

• between entities within the same Energy Group, the allocation of 777 is effected on the same business day if the 777 is not recognized on the collateral margin. Otherwise, the allocation is effected on the next business day after the removal of the 777,
• between clients of the same Clearing House Member’s, the allocation of 777 is effected on the same business day.

IRGiT accepts Insurance guarantees as non-cash collateral.

• The percentage up to which Insurance guarantees may cover the required collateral margin amount is specified in the communication. The communication is available in the "Parameters" ltab.

• Insurance guarantees can only be provided by a Direct Clearing House Members

• The surplus is not allocated for the coverage of the remaining elements of the clearing guarantee system.

• The minimum insurance guarantee amount is PLN 100,000.

• The insurance guarantee must comply with new insurance guarantee form approved by IRGiT S.A.

• The insurance guarantee may be issued only by KUKE S.A.

• Before the insurance guarantee is issued, the Clearing House Member is obliged to provide IRGiT with draft documents pertaining to the collateral being submitted for review and final approval

• Changes to the value of non-cash collateral, i.e. reduction or withdrawal of an insurance guarantee, require IRGiT’s approval:

  • Direct Clearing House Members

    • the value of the insurance guarantee is reduced twelve business days before the date of sending the consent for the reduction of the insurance guarantee to KUKE or twelve business days before the last day of the insurance guarantee validity, which will be prolonged and reduced, as long as required cash for the collateral margins is provided,

    • the withdrawal of the insurance guarantee takes place twelve business days before the date of sending the consent for the withdrawal of the insurance guarantee to KUKE, as long as required cash for the collateral margins is provided,
    • if the insurance guarantee is not extended, the value of the insurance guarantee will be removed twelve business days before the last day of the insurance guarantee validity or if the last day of the insurance guarantee validity falls on a Polish public holiday, twelve business days before the last business day preceding such day.