Transaction Margin are an element of the clearing guarantee system used to secure cash settlements.
They consist of:
- Delivery Margin
- Historic Margin
The minimum value of Transaction Margin is determined in accordance with the Detailed Clearing and Settlement Rules of the Clearing and Settlement House.
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.
Historic Margin
The purpose of the Historic Margin is to cover the potential exposure of a given Clearing House Member in respect to transactions concluded on RIF_EUA.
The Historic Margin is updated daily and its calculation algorithm and settlement procedure are defined in the Detailed Clearing and Settlement Rules of the Clearing and Settlement House.