The Clearing Members are obliged to maintain resources designed for the collateralization of cash settlements in the form of the Transaction Margin.
The Transaction Margin is the sum of the resources lodged by the right of required Delivery Margin as well as Historic Margin and the Transaction Limit. The Transaction Limit represents the excess of resources in the Transaction Margin above the value of the required Delivery Margin and Historic Margin.
The minimum value of resources lodged in the Transaction Margin is determined by the Resolution of Management Board of IRGiT (Resolutions of IRGiT’s Management Board)
Payments feeding the Transaction Limit can be made:
- in cash,
- in form of non-cash collaterals, according to IRGiT rules (Resolutions of IRGiT’s Management Board)
The value of the required Delivery Margin for a given month is equal to a doubled maximum daily value of liabilities which have come into being as a result of delivery by the right of transactions which have been entered into on the CDM (RTT).
The algorithm of calculation and payment deadline is determined by the Detailed Clearing Rules for the markets operated by TGE S.A.
The required amount of the Historic Margin for a Clearing Member is determined daily. It is used only for instruments from Energy Day Ahead Market. The required amount of the historic margin is determined in accordance with IRGiT’s Management Board Resolution.
Example of calculations and update for Transaction Limit.