Izba Rozliczeniowa Giełd Towarowych S.A. (Warsaw Commodity Clearing House, “IRGiT”) has amended the Detailed Clearing and Settlement Rules of the Exchange Clearing House, which involved:
- adaptation of provisions on acceptable non-cash collateral in connection with the coming into effect of the Act of XX May 2020 amending certain acts with respect to protective measures related to the spread of SARS-CoV-2 virus,
- introduction of the option to provide non-cash collateral in the form of bank guarantees with payment term longer than accepted previously.
Having in mind the coming into effect of the Act of XX May 2020 amending certain acts with respect to protective measures related to the spread of SARS-CoV-2 virus (“Act”), IRGiT will accept the following new forms of non-cash collateral up until 30 September 2020:
1) surety of a company from a group of companies, which is a parent company, within the meaning of Article 4 item 3 of the Competition and Consumer Protection Act of 16 February 2007 (Journal of Laws 2018 Items 798, 650, 1637 and 1669), of the entity, to which such surety is extended, and holding a credit rating specified in the Act within the meaning of Article 3(1)(a) of the Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (OJ EU 302 17.11.2009, page 1, as amended), which attached to the surety agreement a bank guarantee or a statement of submitting to enforcement under art. 777 § 1 item 5) of the Code of Civil Procedure prepared in the form of a notary deed;
2) statement of submitting to enforcement under art. 777 § 1 item 5) of the Code of Civil Procedure prepared in the form of a notary deed by the Clearing House Member holding an appropriate credit rating.
Until 30 September 2020, IRGiT has also adopted, as prescribed by the Act, the abolishment of the quantitative limits restricting the possibility of providing Property Rights to certificates of origin and CO2 emission allowances as non-cash collateral by entities holding an appropriate credit rating or belonging to a group of companies holding such credit rating.
Additionally, considering the expectations of Clearing House Members, amendments have been made to the Detailed Clearing and Settlement Rules of the Exchange Clearing House, which enable provision of collateral in the form of bank guarantees with an acceptable payment term longer than accepted previously, i.e. payment within the maximum of 3 days after submitting a payment demand to the bank.
The above amendments will come into effect as of 1 June 2020.