Investment Policy

The Collateral provided in cash shall be invested by BME CLEARING, unless the Member or Client communicates its wish not to be invested, only possible in the case of EUR, in which case (non-investment decision), it shall be deposited in the account of BME CLEARING in the Eurosystem.

In cases where, given the currency in which the Collateral is provided, BME CLEARING is obliged to invest the Collateral, as it is in the case of cash posted in USD, in compliance with the obligations set out in Delegated Regulation 153/2013 (EMIR), and the Member or Client may not, in these cases, request the non-investment of their Collateral in cash.

BME CLEARING may invest the Margins posted in cash by means of re-purchase transactions (hereinafter "buy/sell back"), classic repos (reverse), or by direct purchase either through bilateral transactions or through BME CLEARING's participation in the investment platforms, under the following conditions:

• The collateral accepted as margin for the investment should be Sovereign Debt in the currency type accepted as margin in the Circulars Margin collateral in the form of securities in IBERCLEAR margin collateral in the form of securities in  CLEARSTREAM, margin collateral in the form of securities in EUROCLEAR and Margin collateral in the form of securities in SIX SIS or that which replace these. In addition, for repos executed on the CO:RE platform, the collateral accepted for the investment may be securities contained in the SNB GC - L1 basket according to the list of eligible collateral for SNB repos published by the swiss national bank (SNB). The SNB basket shall not be available in the case of outright purchases of securities, neither in bilateral repos, nor in bilateral buy/sell backs.
• The counterparties of the investment should have a solvency level between s1 and s7, according to the circular ‘calculation of shareholders' equity and solvency’’, or the one replacing it.
• BME CLEARING will establish credit limits in accordance with the six group's investment policy according to the solvency ratio assigned to the counterparties and issuers. in the case of outright purchase transactions, the following concentration limits will also be considered:

        • The exposure of the investment to one issuer may not exceed 25% of the total invested by bme clearing.
        • The investment exposure may not exceed 10% of the outstanding balance of an issue.

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