BME Clearing Fixed Income is the denomination for the Fixed Income Segment of the Central Counterparty (CCP).
Participants of BME Fixed Income may be all entities that wish to be Clearing Members or those that wish to be Clients of a Clearing Member under an account within the latter.
BME Clearing acts as a Central Counterparty (CCP) for transaction of Fixed Income Securities traded on stock exchanges, electronic trading systems or OTC between Clearing Members and/or Clients. Nowadays, BME Clearing Fixed Income cleared transactions are buy/sell-back or repo transactions on Spanish, Italian, Portuguese, French, German, Austrian and Dutch Sovereign Debt.
BME Clearing receives in real time information of transactions that members intend to novate and confirms the novation of the transaction to the corresponding Platform, updating the Member´s position in the corresponding CCP account. BME Clearing generates the settlement instructions.
Additionally, both in real time and at the end of each session, BME Clearing calculates the risk for each Clearing Member by the outstanding position pending to be settled requiring margins to cover it and informing the entities involved. Members are also provided with the result of the settlement managing the fails that may occur.