Delivery of Electricity Certificates (ELC) with expiry in March 2018 is approaching with 13th of March as the Expiration Date and Last Trading Day for the contract ELCSEKMAR-18.
- Trading and clearing of ELCSEKMAR-18 closes at 18:00 CET on the Expiration Day.
- Net sellers must ensure that they have completed delivery of all ELCs to the Clearing House’s account prior to 19:00 CET on the Expiration Day. Transfers shall be confirmed through the delivery form provided here.
- A failure to complete the full delivery in due time will constitute a Default Event.
- Net buyers shall have collateral to cover payment margin equal to the net settlement for ELCSEKMAR-18 within 11:00 CET, March 14th.
The Clearing House’s account number for delivery in CESAR is 64300240670077095.
The Margin Requirement for Electricity Certificates will increase considerably towards the Expiration Day as the contracts’ volatilities will increase and the contracts' correlations will be removed, giving no margin credits. The increased margins reflect the approaching settlement. The net sellers may pre-deliver Electricity Certificates in advance of the Expiration Day. Pre-delivered Electricity Certificates will reduce the net sellers' need to post extra collateral to cover the increased Margin Requirement.
For more details, please see Trading and Clearing Rules Appendix 2 - Contract Specifications, part B, chapter 4 .
For further information, please contact Clearing & Collateral Management:
E-mail: clearing@nasdaq.com
Phone: +46 8 405 6880