Daily and Expiry Settlement

Daily settlements are carried out 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 in the Euro System to settle through it.

Variation Margin

Variation Margin takes place for future Annual, Seasonal, Quarterly, Monthly and Weekly contracts.

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-Ahead 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

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 on 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:

Flow of Gas contracts

Settlement Fees

Registration and Clearing Fees

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 * Contract Multiplier* Rate charged

Fees for Nomination and Physical Delivery

The delivery fee is settled the following working date of the expiry register and it varies depending on the delivered volume. It is calculated as follows:

            Fee = Trade Volume* Contract Multiplier* Rate Charged

In both cases,

• Contract multiplier: number of MWh/d on a contract, identified in the corresponding contract type multiplier.
• Rate Charged: amount per unit of the price corresponding (register, clearing or delivery) to the type of registered trade, contract and holder concerned, in euro cents/MWh/d.