KELER CCP

Stock exchange and energy market-related clearing and settlement services of the KELER Group include account keeping, record keeping and financial settlement of daily on-exchange and OTC transactions, collateral management, guarantee undertaking and reporting. These activities of KELER Group are shared between KELER, the central securities depository, and KELER CCP, the clearinghouse, in a way that KELER CCP provides clearing services and ensures the safe settlement of the market through its guarantee system and Clearing Membership requirements, while KELER creates the technical conditions for the settlements.

The KELER CCP is serving exchanges and platforms; it clears a broad range of asset classes, including securities, exchange-traded derivatives, foreign exchange derivatives, commodities, energy, etc. KELER CCP Ltd. ensures safe and EMIR-compliant operation of the financial and energy markets. KELER CCP applied for EMIR licence and will become an authorized central counterparty clearing house under EMIR in Q2 2014.

Contracts

KELER CCP completes clearing and undertakes guarantee, KELER is in charge of account management for all types of futures products of the Budapest Stock Exchange (BSE) and CEEGEX.

ACCESS TO FUTURES MARKETS:

At present BSE and CEEGEX are the futures markets cleared and guaranteed by KELER CCP and settled by KELER.

INITIAL MARGIN

Initial margin is calculated by SPAN (Standard Portfolio Analysis of Risk). Margins are subject to change with market moves.

MARGIN FUNDING

Initial margin can be deposited by clearing members in cash or in securities in accordance with KELER CCP’s effective “Conditions of acceptance of securities and currencies collateral”.

Collective Guarantee Funds

In addition, collective guarantee funds are established to embody the mutual guarantee among members. Collective Guarantee Fund (CGF) contributions are held separately from day to day margin requirements and may be used either as a mutual fund to meet any losses arising from a clearing member’s insolvency or delay, or as the second level of funds available to meet any deficiencies arising in the event of a clearing member’s default. CGF contributions have to be deposited in cash in order to move funds easier.