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IRGiT allows collateral to be contributed in a non-cash form, thus optimizing the cost incurred by Clearing House Members associated with the financing of requirements associated with individual elements of the clearing guarantee system.

According to the provisions of the Detailed Clearing and Settlement Rules, Clearing House Members and customers of Brokerage Houses that are Clearing House Members or a Clearing House Member acting as a representative of an Exchange Member may contribute non-cash collateral to cover:

  • collateral margins (bank guarantees, Property Rights and CO2 emission allowances),
  • historic margin (bank guarantees),
  • basic transaction limit (bank guarantees),
  • payments to the Guarantee Fund (bank guarantees)

 

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Information available in the tabs:

 

Bank guarantees

Bank guarantees

IRGiT accepts bank guarantees as non-cash collateral. Bank guarantees are divided into two liquidity classes, each with different dates of disbursement of funds by the bank issuing the bank guarantee.

Bank guarantees of the 1st liquidity class

  • Bank guarantees of the 1st liquidity class may cover:
    • collateral margin, up to the percentage specified in the communication. The communication is available in the "Parameters" tab,
    • up to 60% of the required payment to the Guarantee Fund,
    • up to 50% of the required historic margin,
    • 50% of the Basic Transaction Limit.
  • A bank guarantee is used in the first place to cover the collateral margin and in the second place to cover liabilities on account of the historic margin. A surplus of funds, if any, is credited to the Basic Transaction Limit. 
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A bank guarantee may be fully designated for the coverage of other selected elements of the clearing guarantee system only (historic margin, transaction limit and Guarantee Fund) provided that IRGiT is informed about the designation of the guarantee. A bank guarantee may also be allocated in fixed parts to the collateral margin and/or historic margin and/or transaction limit.

Bank guarantees (PLN and EUR) of class II liquidity

  • Class II bank guarantees can cover collateral margin, up to the percentage specified in the communication. The communication is available in the "Parameters" tab. The surplus is not allocated for the coverage of the remaining elements of the clearing guarantee system.
  • Class II bank guarantees cannot be allocated to other elements of the clearing guarantee system.
  • Class II bank guarantees may be issued in both PLN and EUR.
  • Second class liquidity (EUR) bank guarantees are subject to market valuation on each business day at the average EUR / PLN exchange rate published by the National Bank of Poland, taking into account the reduction ratios available in the "Parameters" tab.
  • Bank guarantees of the 2nd class of liquidity (EUR) are subject to a concentration limit at the Clearing House Member level - EUR 150 million and a Clearing House limit - EUR 600 million (concentration limits are calculated together with the contributed euro).

Conditions for accepting bank guarantees of 1st and 2nd liquidity classes

  • Only a bank accepted by IRGiT may issue guarantees:

    • the bank must not have equity links to (belong to the same corporate group as) the entity, for which the bank guarantee has been issued,
    • the bank must have its registered office or branch in the territory of the Republic of Poland or outside the territory of the Republic of Poland, provided that it has appropriate arrangements in place with the Settlement Bank or Clearing Bank with regard to interbank communication via the SWIFT system,
    • the bank’s minimum long-term rating awarded by Fitch, Moody’s and Standard&Poor’s is BB−, BB− and Ba3, respectively.
  • The bank guarantee must comply with new bank guarantee form approved by IRGiT S.A. (only the Polish versions of the documents made available by IRGiT are legally binding and accepted).
  • Before the bank issues a bank guarantee, the Clearing House Member is obliged to provide IRGiT with draft documents pertaining to the collateral being submitted for review and final approval.
  • Changes to the value of non-cash collateral, i.e. reduction or withdrawal of a bank guarantee, require IRGiT’s approval:

    • Clearing House Members acting on their own account:

      • the value of the bank guarantee is reduced two business days before the date of sending the consent for the reduction of the bank guarantee to the bank or two business days before the last day of the bank guarantee validity, which will be prolonged and reduced, as long as required cash for the collateral margins is provided,

      • the withdrawal of the bank guarantee takes place two business days before the date of sending the consent for the withdrawal of the bank guarantee to the bank, as long as required cash for the collateral margins is provided,

      • if the bank guarantee is not extended, the value of the bank guarantee will be removed two business days before the last day of the bank guarantee validity or if the last day of the bank guarantee validity falls on a Polish public holiday, two business days before the last business day preceding such day.

    • Clients of Brokerage Houses and Clearing House Member’s Clients who signed a surety agreement with IRGiT:

      • the value of the bank guarantee is reduced five business days before the date of sending the consent for the reduction of the bank guarantee to the bank or five business days before the last day of the bank guarantee validity, which will be prolonged and reduced, as long as IRGiT does not receive information from client's Clearing House about problems with providing required cash for collateral margins,

      • the withdrawal of the bank guarantee takes place five business days before the date of sending the consent for the withdrawal of the bank guarantee to the bank, as long as IRGiT does not receive information from client's Clearing House about problems with providing required cash for collateral margins,

      • if the bank guarantee is not extended, the value of the bank guarantee will be removed five business days before the last day of the bank guarantee validity or if the last day of the bank guarantee validity falls on a Polish public holiday, five business days before the last business day preceding such day.

    • If Clearing House Member’s Client fails to sign a surety agreement with IRGiT, the rules for a Direct Clearing House Member shall apply.

  • The minimum guarantee amount is PLN 100,000.

The detailed criteria for accepting a bank guarantee as non-cash collateral are provided in the chapter entitled “Non-Cash Collateral Register” in the Detailed Clearing and Settlement Rules of the Exchange Clearing House.

 

Forms of bank guarantees

Direct Clearing House Members:

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Clearing House Members who signed an agreement with IRGiT setting out the rules for establishing financial collateral for a Power Group:

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CO2 emission allowances (EUA)

Emission allowances

IRGiT accepts CO2 emission allowances (EUAs) as non-cash collateral.

  • The percentage up to which EUAs may cover required collateral margin amount is specified in the communication. The communication is available in the "Parameters" tab. The surplus is not allocated for the coverage of the remaining elements of the clearing guarantee system.

  • EUAs are contributed on the basis of a security transfer agreement pertaining to Emission Allowances and after they are credited to the Clearing House’s account in the Union Registry. 

  • IRGiT applies the haircuts, which are presented in the “Parameters” tab.

  • IRGiT applies concentration limits of 15,000,000 EUAs per Clearing House Member and 50,000,000 EUAs globally.

  • The security transfer agreement pertaining to Emission Allowances must be consistent with the form of the agreement made available by IRGiT (only the Polish versions of the documents made available by IRGiT are legally binding and accepted).

  • The Clearing House Member is obliged to provide it with draft documents pertaining to the collateral being submitted for review and final approval by the Clearing House.

The detailed criteria for accepting Emission Allowances as non-cash collateral are provided in the chapter entitled “Non-Cash Collateral Register” in the Detailed Clearing and Settlement Rules of the Exchange Clearing House.

 

Property Rights under Certificates of Origin (PMOZE_A)

Property rights

IRGiT accepts Property Rights to a PMOZE_A instrument as non-cash collateral. 

  • The percentage up to which Property Rights may cover the required collateral margin amount is specified in the communication. The communication is available in the "Parameters" tab. The surplus is not allocated for the coverage of the remaining elements of the clearing guarantee system.

  • Property Rights are contributed on the basis of a security transfer agreement pertaining to Property Rights under Certificates of Origin and an application to lock the Property Rights in the Certificates of Origin Register.

  • The Clearing House applies the haircuts, which are presented in the “Parameters” tab.

  • The Clearing House applies concentration limits of 240,000 MWh per Clearing House Member and 3,000,000 MWh globally.

  • The security transfer agreement pertaining to Property Rights must be consistent with the form of the agreement made available by IRGiT (only the Polish versions of the documents made available by IRGiT are legally binding and accepted).

  • The Clearing House Member is obliged to provide IRGiT with draft documents pertaining to the collateral being submitted for review and final approval..

The detailed criteria for accepting Property Rights as non-cash collateral are provided in the chapter entitled “Non-Cash Collateral Register” in the Detailed Clearing and Settlement Rules of the Exchange Clearing House.

 

Forms of documents

Direct members:

Euro currency

Euro currency

IRGiT accepts the euro as non-cash collateral.

  • The percentage up to which Euro currency may cover the required collateral margin amount is specified in the communication. The communication is available in the "Parameters" tab. The surplus is not allocated for the coverage of the remaining elements of the clearing guarantee system.

  • Euro currency is transferred to a dedicated account at Bank Gospodarstwa Krajowego, owned by IRGiT.

  • Euro currency is subject to market valuation on each business day at the average exchange rate published by the National Bank of Poland, taking into account the reduction rates that are available in the "Parameterstab.

  • The Clearing House applies concentration limits of 150 million per Clearing House Member and 600 million globally.

  • The minimum value of collateral that may be submitted in EUR is EUR 100 000.

  • Changes regarding the amount of collateral, i.e. depositing, increasing, decreasing and withdrawing the euro currency, require the consent of IRGiT:

    • IRGiT may refuse to transfer a specific value of the euro currency in the event of failure to cover the collateral margin required from the Clearing House Member on the date of reduction or withdrawal of the euro currency,

    • the increase in the euro currency takes place after the funds are credited to the bank account, if the funds were credited to the account by 2:30 p.m. Otherwise, the increase in the euro currency is made on the next business day following that day.

    • Clearing House Member

      1. the reduction and withdrawal of the euro currency from the Non Cash Register takes place two business days before the planned return of the euro currency, provided that the required funds for collateral margin are replenished.

    • Clients of Brokerage Houses who signed a surety agreement with IRGiT

      1. the reduction and withdrawal of the euro currency from the Non Cash Register takes place five business days before the planned return of the euro currency, provided that IRGiT does not receive information from the Brokerage Houses about problems with replenishing the required funds for collateral margin.

  1. Bank charges

    1. banking costs related to maintaining the account are borne by the Clearing House Member on the terms specified in the schedule of fees and commissions by Bank Gospodarstwa Krajowego,

    2. bank costs are charged directly from the bank account, which will result in a reduction in the euro currency balance in the bank account,

    3. if there are no funds in the bank account needed to maintain it, IRGiT may take action to immediately close the account and call on the House Member to pay the additional amount.

Anti-crisis shield

Anti-crisis shield

Non-cash collateral accepted until 31 December 2026

Due to the entry into force of the amendments to the Act of March 2, 2020 on special solutions related to the prevention, prevention and combating of COVID-19, other infectious diseases and crisis situations caused by them (Journal of Laws of 2020, item 1842 as amended) (Ustawa o szczególnych rozwiązaniach związanych z zapobieganiem, przeciwdziałaniem i zwalczaniem COVID-19, innych chorób zakaźnych oraz wywołanych nimi sytuacji kryzysowych (Dz. U. z 2020 r. poz. 1842 z późn. zm.) (the "Act"), consisting the extension in sec. 8 in Art. 31zzh of the Act, the effective date of the solutions to 31 December 2026 and the Act on special solutions to protect electricity consumers in 2023 in connection with the situation on the electricity market (Ustawa o szczególnych rozwiązaniach służących ochronie odbiorców energii elektrycznej w 2023 roku w związku z sytuacją na rynku energii elektrycznej) IRGiT will accept additional forms of non-cash collateral, i.e .:

  • a surety of a company from a capital group which is a parent undertaking within the meaning of Art. 4 point 3 of the Act of February 16, 2007 on competition and consumer protection and having a credit rating specified in the Act within the meaning of Art. 3 point 1 lit. a Regulation (EC) No. 1060/2009 of the European Parliament and of the Council of September 16, 2009 on credit rating agencies (Journal of Laws UE L 302 of November 17, 2009, p. 1, as amended), which until the surety agreement was accompanied by a bank guarantee or a declaration made in the form of a notarial deed on submission to enforcement pursuant to Art. 777 § 1 point 5 of the Code of Civil Procedure;

  • a declaration made in the form of a notarial deed on submission to enforcement pursuant to Art. 777 § 1 point 5 of the Code of Civil Procedure by a Clearing House Member with an appropriate credit rating or Clearing House Member who perform on 27 September 2022 the obligation referred to in Article 49a (1) of the Energy Law Act.

Until December 31, 2026, the quantitative limits limiting the possibility of contributing Property Rights to certificates of origin and CO2 Emission Allowances as non-cash collateral by entities with an appropriate credit rating or belonging to a capital group with such a credit rating will also apply.

Clearing House members who performed on 27 September 2022 the obligation referred to in Article 49a (1) of the Energy Law Act:

Risk Management Department

For more information, please contact: