Daily settlements are made using a standard multilateral settlement in the Bank of Spain TARGET-2 System.
The Clearing Member requires an account in the TARGET-2 payments module. If it does not have one, it may designate a payment agent who has a treasury account in a central bank of the euro system so that it can make settlements through it.
Variation Margin takes place for future contracts (Annual, Quarterly, Monthly and Weekly).
During the life of a future contract, and up to the last day it is registered, a daily variation margin takes place, based on the difference between the settlement price and the last settlement price (for day trades: the price of the trade, for the rest: the settlement price of the previous session). On the last day of register, the variation margin calculation is based on the difference between the final settlement price and the last settlement price.
Settlement at expiry is carried out on Day-ahead contracts.
The Settlement takes place once the contract delivery period is over. The expiry trades (V) are generated in the expiry date, which is the last working day prior to the contract delivery period.
The table below explains the Flow of gas contracts for daily and expiry settlement:
The fee for a trade is settled on the first working day following the trade register and it may vary depending on the volume. It is calculated as follows:
Fee = Trade volume * MWh contract* Rate charged
The delivery/expiry fee is settled the following working date of the expiry register y it varies depending on the registered volume. It is calculated as follows:
Expiry Fee = Expiry Volume* MWh contract* Expiry Rate Charged