The Guarantee Fund is an element of the clearing guarantee system, which ensures the safety of clearing even in extreme market conditions. The sum of payments to the Guarantee Fund is sufficient to cover losses associated with the default of the largest Clearing House Member or the sum of losses of the second and third Clearing House Member in terms of uncovered risk. In order to calculate losses in extreme conditions, stress test scenarios are used, which are based on the risk parameters set with the confidence level of 99.9%.
The Guarantee Fund consists of payments from all Clearing House Members, proportional to their uncovered risk exposure. The Fund is used in accordance with the rules set forth in the ECH Regulations, according to the order of using funds from the clearing guarantee system. The Fund is used only if the funds accumulated in the clearing guarantee system by the Clearing House Member, to which the event of default pertained, prove not to be sufficient to cover the costs resulting from the closing of its position.
Currently IRGiT operates only one Guarantee Fund of the Exchange Clearing House (IRGiT Regulations). The Fund covers both forward and spot markets for electricity and gas.
The current and archival values of the Guarantee fund multipliers are available in the parameters tab.