Collateral
Management

Multilateral Settlement on Target 2

All of BME CLEARING’s cash settlements are conducted in European Central Bank money. 

Daily at 9 am, all cash settled concepts of the CCP are settled via a standard Multilateral Settlement mechanism on the TARGET2 platform, where the credits and debits of each Clearing Member are offset. 

Settlement is carried out pursuant to the agreement made between BME CLEARING and Banco de España and under authorisation from the competent authority of the CCP pursuant to the CCP’s Rule Book.  Any incidents during settlement shall be regulated by the said agreement. 

If a Clearing Member does not have an account in the TARGET2 system it must appoint a Payment Agent who is a Clearing Member with an account in the TARGET2 platform. All CCP settlement are thus aggregated to the Payment Agent level. 

All intraday margins received by the CCP, either individual or extraordinary, made via a payment transfer or a direct debit, are also paid into the CCP’s account in the Target-2 platform.

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