Izba Rozliczeniowa Giełd Towarowych S.A. (“IRGiT”) is amending § 35 of the Detailed Clearing and Settlement Rules of the Exchange Clearing House. In particular, it has adapted the provisions concerning the levels of recognition of acceptable non-cash collateral according to sec. 8 of Article 31zzh of the Act of 2 March 2020 on special solutions related to prevention and combating of COVID-19, other communicable diseases and crises caused by them (Journal of Laws 2021 Item 2095, as amended) (hereinafter, the “Act”).
As a result, on 1 January 2025, the maximum recognition parameter set for non-cash collateral submitted in the forms described below will change from the level of 90% to 75%:
- a statement of submitting to enforcement following the procedure under Article 777 § 1 item 5 of the Act of 17 November 1964 – Code of Civil Procedure, and
- a surety extended by a company that is, in respect to the Clearing House Member for which such surety is extended, a parent company, secured with a statement of submitting to enforcement under Article 777 § 1 item 5 of the Act of 17 November 1964 – Code of Civil Procedure.
Current values of the recognition parameters for non-cash collateral referred to in the Act will be included in the Risk Management Department Announcements, which are available on the IRGiT website in the Parameters tab.
Please be informed that the new value of the recognition parameter (75%) will be reflected in IRGiT’s system after the session of 31 December 2024. As a result, the market participants using the above mentioned non-cash form of collateral will be obliged to replenish the required collateral using other forms accepted by IRGiT on the next business day, or on the same day in the case of brokerage houses or commodity brokerage houses that have received the permission referred to in par. 11 sec. 2 of the Regulations of the Exchange Clearing House (Commodity Market).
The amendments will come into effect as of 1 January 2025.
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