The model of IRGiT cash settlement process is based on the cooperation of the Clearing House, the Clearing Bank (CB) as well as the Member's Banks (MB).
In MB the Clearing House keeps the Margin Account as well as the Transaction Margin Account. Members of IRGiT have been obliged to maintain sufficient monetary resources (by the right of the required margins, respectively) in the sub-accounts dedicated to them.
The Clearing Members keep the Clearing Account in the Member’s Bank as selected by them.This account is credited and charged by the right of clearing of the transactions (resulting from the settlement of Mark-To-Market, the final settlement of future contracts as well as updating the required margins). The Clearing House does not inspect the balances of the clearing accounts of the Clearing Members, so the IRGiT clients are obliged to keep in the accounts resources sufficient for covering any liabilities which come into being.
The payment orders, generated by the Clearing House, are executed by CB pursuant to the settlement Schedule, available in the “Detailed Clearing Rules for the Markets being run by TGE”.