UniCredit Bank Austria AG
Summary:
A list of topics from the last CCP.A Member Meeting.
Mon, 06/05/2013
CCP.A held a member meeting in Vienna and London at the end of last week. The main focus was on the following topics:
1st Experience with the new cash market clearing system
- The migration and first days of operations ran smoothly
- Settlement efficiency remained at a very high level
- Four clearing agents switched to ISO Reporting
- SICS (file) reporting will be supported until the end of 2014
Next to come with the new cash market clearing system (system release mid 2013)
- Settled position report (currently email workaround)
- Cash obligation forecast
Next to come due to EMIR requirements
- Flexible account structure (account segregation on different levels possible)
- Margin calculation
- Collateral valuation, haircuts calculation and concentration limits
- Default fund calculation
Recent changes to CCP.A rules
- Amendments covering the new functionalities in the cash market clearing system (account structure and reporting)
- Stop-button functionality
- Changes in default management
Important update in default management policy
- Members obligation to provide sufficient collateral until 9.00 CET– if it is not sufficient
- CCP.A declares members’ default
- Immediate suspension from trading – applies to DCMs, GCMs and their NCMs
- Penalty interest: 1% per day, at least EUR 70
- Same applies when sufficient cash is not supplied by 10.00 am and at 2.00 pm sharp
EMIR activities
- Technical standards entered into force in March 2013, effective as of September 2013
- Organisational requirements until July 2013 – CCP.A will introduce a new supervisory board and risk committee
- Account structure: omnibus and individual client segregation possible
- Eligible collateral: cash, liquid bonds (no bank guarantees will be accepted)
- Default fund: calculation based on actual exposure (minimum contribution EUR 50,000)
Billing of CCP fees
- Membership fees
- Collateral management fees
- User and account management fees
Impact on investors: Updates on CCP.A rule changes and default management policy.