Changes to IRGiT’s regulations – new version of the Procedure of conduct in the event of insolvency of an Exchange Clearing House Member
- The Commodity Clearing House (“IRGiT”) is introducing a new version of the Procedure of conduct in the event of insolvency of an Exchange Clearing House Member („Procedure”).
- The Procedure comes into effect as of 10 May 2019.
The new version of the Procedure is introduced in order to achieve greater efficiency and streamline the insolvency management process of an Exchange Clearing House Member (“House Member”). At the same time, the Procedure implements the best market standards and practices in the area of insolvency management, contributing to mitigation of the market risk generated by the open positions of a House Member if insolvency occurs in extremely unfavorable market conditions that could significantly increase position closing costs for that Member and cause additional market pressure.
Along with the introduction of the Procedure, IRGiT publishes the “Rules of conduct in the event of insolvency of an Exchange Clearing House Member” (“Rules”) which are an extract from the Procedure. As a next step, IRGiT intends to test the Procedure regularly with all the House Members. Both the publication of the Rules and the tests of the Procedure are aimed at increasing awareness of the process among its participants and ensuring its further improvement.
The content of the Rules is available on the website in the Default management tab.