1 / 4

Mod 04-19 Update

Mod 04-19 Update. June 19 Modifications Committee meeting Andrew Burke & David Gascon. Background. Mod 04_ 19 was raised at Meeting 89 on Feb 20 th 2019

higdon
Download Presentation

Mod 04-19 Update

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Mod 04-19 Update June 19 Modifications Committee meeting Andrew Burke & David Gascon

  2. Background • Mod 04_ 19 was raised at Meeting 89 on Feb 20th 2019 • The aim is to reduce the collateral requirement on participants, who currently have to post collateral to cover 5 days on a Christmas or Easter period, when there are 4 consecutive non working days. • The issue is due to the Traded Amounts not being recorded into the collateral report for the non-working days. • This currently increases participants collateral requirement by up to the order of 250% compared to a normal Working Day. • This puts a significant financial strain on Market Participants and an unnecessary over collateralisation on the Market. • SEM-O have been looking at a number of options to address this, which are detailed in the next slide.

  3. Progress since last meeting Six ways to realise the proposal have been investigated, with Option 3 the preferred option and Option 6 also feasible

  4. NEXT STEPS • We would ask participants to let us know their views on the suitability of options 3 & 6 • A revised modification will then be brought to Meeting 93 in August We would like to thank Katia and Chris for their help in progressing this

More Related