ICE Clear Netherlands Regulation Collateral

Transcription

1 ICE Clear Netherlands Regulation Collateral 5 December 2016 This material may not be reproduced or redistributed in whole or in part without the express, prior written consent of Intercontinental Exchange, Inc. Copyright Intercontinental Exchange, Inc All Rights Reserved.

2 REGULATION pursuant to the definition of Collateral and article 6 of the Rulebook. COLLATERAL Capitalised terms used in this Regulation, and not otherwise defined, shall have the meaning as set out in the Rulebook. This Regulation comes into force on 5 December The Collateral may be deposited in cash and / or securities as set out in the detailed overview of the acceptable Collateral under article 5 of this Regulation. The Haircut which is calculated over the Collateral is also set out under article 5 of this Regulation. ICNL will calculate the Haircut over the deposited Collateral. Interest compensation paid over cash Collateral is specified in the Regulation Fees and Penalties. 1 Collateral 1.1 If Clearing Participant wants to provide Collateral by way of a guarantee of the Dutch Central Bank in favour of ICNL, the Clearing Participant shall notify ICNL and shall instruct the Dutch Central Bank to provide the guarantee to ICNL. 1.2 If a Clearing Participant wants to deposit Securities as Collateral, the Securities shall be: (i) (ii) deposited with an account opened in the name of the Clearing Participant with a Correspondent Bank (CP Securities Account), which needs to be pledged to ICNL by way of a security financial collateral arrangement (financiëlezekerheidsovereenkomst tot vestiging van een pandrecht) as published on the website of ICNL; or deposited with an account opened in the name of ICNL with Euroclear Bank, operated by agent J.P. Morgan Chase N.A. or such other bank as specified by ICNL (ICNL Securities Account), through which deposit the Clearing Participant shall transfer full ownership of such Securities to ICNL by way of a title transfer financial collateral arrangement (financiëlezekerheidsovereenkomst tot overdracht). 1.3 If a Clearing Participant wants to deposit cash as Collateral, the cash shall be deposited with the Dutch Central Bank in the account in the name of ICE Clear Netherlands with account number NL21FLOR (ICNL Cash Account), BIC HCHANL2B. 1.4 The Clearing Participant can request ICNL to transfer the entitlements pursuant to any corporate actions and interest received on cash Collateral to another bank account as specified by the Clearing Participant in the Application. Transfers will only take place after approval from the ICNL Risk Department. 1.5 The amount of the Collateral will be calculated in accordance with the Regulation Margin Requirement. Regulation Collateral v Page 2

3 2 Collateral deposits and withdrawals 2.1 If the Clearing Participant provides its Collateral by way of the Dutch Central Bank issuing a guarantee, increasing or decreasing the amount of such guarantee shall be done in accordance with the procedure as agreed upon between ICNL, the Clearing Participant and the Dutch Central Bank. 2.2 To deposit Collateral by way of Securities, the Clearing Participant needs to instruct ICNL via the electronic means made available to the Clearing Participant (ECS GUII)The deposit request needs to be approved by the ICNL Risk Department. Only deposits that have been properly requested by the Clearing Participant and that have been approved by the ICNL Risk Department will be taken into account as Collateral. 2.3 The Clearing Participant needs to instruct its own account at the CSD or Correspondent Bank to deposit Securities to the CP Securities Account or ICNL Securities Account. Upon settlement of the Collateral deposited by the Clearing Participant in the ICNL Cash Account, CP Securities Account or ICNL Securities Account, the Collateral will be approved collateral (Approved Collateral). 2.4 For deposits of cash Collateral, the Clearing Participant needs to instruct ICNL via the electronic means made available to the Clearing participant (ECS Gui). Based on this instruction, ICNL will automatically debit the (central) bank account of the Clearing participant. 2.5 If the value of the Collateral as calculated by ICNL exceeds the Margin Requirement, the Clearing Participant may request ICNL to return to the Clearing Participant Equivalent Collateral with a value, at maximum, of such excess via the the electronic means made available to the Clearing Participant (ECS GUI). The Clearing Participant may request specific assets it wants to receive from ICNL from the pool of assets it has deposited with ICNL. 2.6 Withdrawal requests need to be approved by the ICNL Risk Department. As soon as the withdrawal request has been approved by the ICNL Risk Department, an instruction to deliver Securities free of payment will be send to the custodian of ICNL to deliver from the CP Securities Account or ICNL Securities Account, or a payment instruction will be made by ICNL to Target2 to deliver the cash from the ICNL Cash Account to the Clearing Participant. The Clearing Participant is responsible for the receiving instructions if and when applicable. 2.7 If the value of the Collateral added across all Clearing Participants in a single Security exceeds the applicable concentration limit across all Clearing Participants as set out in the column Admission Criteria of the detailed overview of the acceptable Collateral under article 5 of this Regulation, ICNL may request, on a pro rata basis, those Clearing Participants having deposited such Collateral to replace that Collateral by other acceptable Collateral. ICNL may notify Clearing Participants of such Collateral replacement requests by . Clearing Participants need to comply with such request within one business day. 2.8 If a Clearing Participant wishes to or is requested to replace Collateral, ICNL shall return the Collateral to be replaced only after the Clearing Participant has deposited sufficient other acceptable Collateral. Regulation Collateral v Page 3

4 3 Deadlines and instruction details for deposits and withdrawals All deadlines and instruction details for deposits and withdrawals of Collateral which is deposited by way of providing cash and/or Securities can be found in Schedule 1. For intra-day Margin Calls see Regulation Margin. 4 Reporting of Approved Collateral ICNL will make available the Approved Collateral including the valuation of the Approved Collateral to the Clearing Participant. 5 Acceptable Collateral 5.1 Next to the guarantee provided by the Dutch Central Bank, ICNL will accept the following Collateral: Collateral Type Currency Admission Criteria Security Sub-Group Minimum Haircut 1) Liquidity class L1A of the ESCB 2) Maximum time to maturity of 10 years. BONDS EUR 3) Exchange listing (except Bubills) 4) Admissible proportion of the issued debt is 5% 5) Admissible proportion of the issued debt is 25% across all Clearing Participants in case the amount is greater than Euro 50 million Central government and debt securities issued by central banks of Austria, Belgium, Finland, France, Germany, Luxemburg and the Netherlands. CASH EUR 0% 5.2 The minimum Haircut figures are set out in the table above. Depending on market circumstances, such as volatility, the minimum Haircut figures can be adjusted immediately. ICNL will inform the Clearing Participant by way of the end of day report. If ICNL amends the minimum Haircut pursuant market developments on a permanent basis, it will amend this Regulation. 3% Regulation Collateral v Page 4

5 Schedule 1 Regulation Collateral Deadlines and instruction details for deposits and withdrawals of Collateral deposited by way of providing cash and/or Securities Collateral Custodian cash deps Country Currency J.P. Morgan Chase N.V. cash withdrs secs deps secs withdrs Payment instructions for deposits and withdrawals of cash Settlement instructions for deposits and withdrawals of securities Netherlands EUR 11:00 11:00 ICSD Participant code: (ICNL account). (tag 95P) BIC11: CHASGB2LXXX Beneficiary account: EEW75 De Nederlandsche Bank N.V. 11:00 11:00 De Nederlandsche Bank N.V. BIC: HCHANL2B AWI (tag 57) HCHANL2B IBAN (tag58/59): NL21FLOR Regulation Collateral v Page 5