European Commodity Clearing (ECC) will be using a new calculation logic based on Span to settle on margin requirements. The new system, employed for commodity margining by a large number of exchanges and clearing houses, will help ECC sharpen its margin calculation and utilize all cross-margining potentials that result from the opposite positions being combined.
The system will offer ECC clearing participants with significantly higher savings potentials. The central European clearing house for exchange and over-the-counter transactions will extend its cross-margining from November 21. The new system takes into account all commodities that ECC clears, that is, power, natural gas, emission rights and coal, along with delivery areas, maturities and periods within a given product.
Click here for the release from European Commodity Clearing.