Risk
Management

Skin in the Game

In order to comply with European regulations for minimum capital requirements for central counterparties (CCPs) (specifically Regulation (EU) 648/2012 and Delegated Regulations (EU) 152/2013 and 153/2013), BME CLEARING has carried out the obligatory analysis of the risks incurred, which have been subsequently classified, controlled and measured to determine that sufficient coverage is in place, according to the provisions of the regulation.

Based on the above, BME CLEARING shall allocate a minimum amount of its equity for each of its Segments, as BME CLEARING´s dedicated own resources, which shall be reviewed annually, the purpose whereof is to cover any negative balances resulting from the adoption of the corresponding measures in the event of Default of a Clearing Member which exceed the amount resulting from the sum of the amount registered in the Collateral Account, in the Margin Collateral Account and in the Buffer Collateral Account of the Defaulting Member.

BME CLEARING has developed a CCP capital requirements monitoring procedure to ensure that sufficient capital is permanently available to comply with the regulations.

The amount of BME CLEARING´s dedicated own resources shall be established via Circular.

In the event that these dedicated own resources have to be utilized, BME CLEARING shall replace them immediately, after the process for dealing with a Member default as stipulated in Chapter 9 of the Rule Book has been completed.

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