Transaction Margins are an element of the clearing guarantee system used to secure cash settlements.
They consist of:
- Delivery Margin
- Transaction Limit.
The minimum value of Transaction Margins is determined in accordance with the Detailed Clearing and Settlement Rules of the Clearing and Settlement House.
Transaction Limit
A Transaction Limit is determined on the basis of the value of cash accumulated on the account associated with Transaction Margins and the required value of the Delivery Margin. Transaction Limit defines the maximum value of purchase or sale on spot markets cleared by the CSH.
Delivery Margin
The purpose of the Delivery Margin is to cover the Member’s liabilities and guarantee that payment is received for executed transactions. Delivery Margin is calculated only for the Members clearing transactions in RES Property Rights forward contracts.
Delivery Margin is provided by contributing cash or by freezing RES Property Rights.
The algorithm used to determine the value of and the procedure for providing the Delivery Margin are set forth in the Detailed Clearing and Settlement Rules of the Clearing and Settlement House.
The current value of the parameter needed to calculate the Delivery Margin is available in the Parameters tab.