Collateral
Management

Investment Policy

When, in accordance with articles 5.2.f, 5.3.f, 7.2.f, 7.3.f, 16.2.c and 30.4 of BME CLEARING’s Regulations, the Clearing Member has not requested BME CLEARING to not invest the Cash Margins (and therefore keep them in BME CLEARING’s account in the Eurosystem), BME CLEARING may invest cash margins by means of overnight re-purchase agreement transactions (hereafter buy/sell back transactions) under the following conditions: 

  • The buy/sell back transactions should be contracted under the frame of IBERCLEAR, CLEARSTREAM or EUROCLEAR and will be subscribed under BME CLEARING’s behalf in the correspondent BME CLEARING’s account signed up for every depositary.
  • The collateral accepted as margin for the investment should be Sovereign Debt in euro currency type accepted as margin in BME CLEARING.
  • The counterparties of the buy/sell back transactions should be at least four high solvency Banks, with a solvency level between S1 and S6, according to the circular Calculation of shareholders' equity and solvency or the one replacing it.
  • The percentage of the margin amount invested relative to the Equity of each counterparty is limited to 10%.
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