Cash settlement

The model of IRGiT’s cash settlement is based on the cooperation of the Clearing House, the Clearing Bank (CB) as well as the Members’ 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 not only payments for delivery of exchange commodities, but also updating the required margins as well.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 cashsettlement process consists of managing the liabilities and the receivables by the right of deliveries of the exchange commodities as well as updating the margins. 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”.