IRGiT is an active participant in international cooperation. During more than 10 years of our operation, we have been admitted as a member by three international associations bringing together clearing houses and other market participants. As a partner of the TGE, we take part in single intraday coupling (SIDC) and single day-ahead coupling (SDAC) projects that enable cross-border trade across Europe. We are also an active participant in the SEEGAS initiative established by the Energy Community, aimed at developing a model for cross-border gas trading. An especially significant aspect of our activity on the international arena is sharing the unique solutions applied by IRGiT in Poland, which we believe to be part of the growth strategy for countries of the CEE region. A large portion of our activity involves bilateral relations and sharing our know-how within the framework of business cooperation.
As a partner of a NEMO designated by the regulator, owing to Poland’s cross-border connections with Lithuania, Sweden, Germany, the Czech Republic and Slovakia, IRGiT actively supports the Single Intraday Coupling (SIDC) and Single Day-ahead Coupling (SDAC) initiatives which enable cross-border trade across Europe. TGE is the operator of an organized electricity spot market and holds a license as a Nominated Electricity Market Operator (NEMO) issued by the market regulator. IRGiT’s role is to act on for and on behalf of TGE in the area of setting collateral for entities operating on the international market and to provide settlement services. TGE and IRGiT cooperate with other European NEMOs and Transmission System Operators (TSOs) in order to perform tasks associated with the coupling of the SIDC and SDAC markets. The purpose of the market coupling process is to maximize the flow of electricity from a low-priced area to a high-priced area by tapping into the available cross-border capacity.
IRGiT has been a member of EACH since 1 April 2011. This distinction confirms that the Clearing House meets the security and settlement standards contained, among others, in the CPSS-IOSCO Recommendations. IRGiT’s membership in EACH has enabled us to cooperate with top-class experts on settlements, clearing and collateral.
Since we became a member of EACH, IRGiT’s representatives have participated in the Association’s general meetings, working meetings, teleconferences and a variety of projects within the following Committees:
- Risk Committee
- Policy Committee
- Legal Committee
As part of these activities, IRGiT actively participates in consultations on draft European regulations pertaining to the operations of clearing houses.
The European Association of CCP Clearing Houses (EACH) was established in 1992. Its purpose is to develop standards and services for clearing institutions. The organization brings together 20 largest CCP clearing houses, both from within and without the European Union. Currently, EACH takes steps towards the development of solutions for the clearing of regulated and OTC markets, cooperates with the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA) and national regulatory authorities in the EMIR and CRD IV area regarding capital requirements for CCPs.
On 12 December 2018, IRGiT became a member of the Association of Futures Markets (AFM). AFM is an organization bringing together commodity exchanges and clearing houses, established in 1998. Its prime objective is to promote and encourage the establishment of new derivative markets and to support their development and competition in such markets. AFM is an international platform for the exchange of experiences and best practices between commodity and financial exchanges and clearing houses across the globe.
Since 1 January 2021, IRGiT has been a member of CCP12, an international association of clearing houses. CCP12 is a global association of 37 members who operate a total of more than 60 individual CCPs globally across EMEA, the Americas and the Asia-Pacific region. CCP12 aims to promote effective, practical and appropriate risk management and operational standards for CCPs to ensure the safety and efficiency of the financial markets it represents. CCP12 expresses the consensus of its members on regulatory and industry initiatives in the area of clearing and settlement of financial markets and is actively involved in consultations and discussions in international fora.
Since the beginning of 2021, IRGiT has been an active participant in the works of the SEEGAS Initiative. The Energy Community Secretariat has launched the South-East and East European Gas (SEEGAS) initiative which aims to coordinate activities and harmonize views and practices pertaining to the development of a common and integrated gas market. The initiative is open to all stakeholders working towards the establishment of national gas hubs, relevant pan-European stakeholders and experts representing national authorities responsible for regulating the energy and financial sectors of the SEEGAS region countries.
The Energy Community was established in 2005 as a platform between the European Union and third countries to extend the EU’s internal energy market to South-East Europe and other areas. The key objective pursued by the Energy Community is to extend the laws and principles governing the EU’s internal energy market to the countries of South-East Europe, the Black Sea region and beyond, under a legally binding framework.
In 2019-2020, IRGiT provided consulting services on establishing an optimal model of collateral and clearing as well as a risk management system for the spot and forward gas markets operated by GET Baltic. GET Baltic operates a natural gas exchange that facilitates regional trade in the market areas of Lithuania, Latvia, Estonia and, since 1 January 2020, also Finland. All these four countries have a single set of rules in place for trade and settlement, meaning that the new collateral and clearing model will introduce European standards and reduce the amount of capital necessary to enable the execution of transactions, thereby increasing the efficiency and liquidity of trade across the Baltic States and Finland.