Initial Margin

BME CLEARING daily requires every Clearing Member to post a maintenance margin (Initial Margin) calculated at the account level.

The purpose of this Initial Margin (IM) is to cover the risk of each account's position.

The collateral for the required Initial Margins must be posted by the holders of each Account opened in BME CLEARING, i.e. the Members holding the respective accounts, Direct Clearing Clients and Clients that are holders of an ISA Agency, Indirect Clearing OSA and Indirect Clearing GOSA.

The obligation to post collateral to cover the required IM shall arise from the moment in which a Trade is entered in the corresponding account.

Initial Margins shall be calculated for each Segment in accordance with generally-accepted portfolio risk assessment models, which shall be described via Circular “Procedure for Margin Calculation” in each Segment.

BME CLEARING shall calculate the Initial Margins for the positions registered in the Position Accounts, considering the net or gross position of each Position Account, based on the type of account involved.

BME CLEARING shall require Initial Margins registered in the Margin Accounts belonging to each account at the end of the session on the calculation date, without the offset of any amounts between the different accounts in the Central Register.