Daily settlements are made 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 of the euro system so that it can make settlements through it.
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 Banco de España platform.
Additional settlements which apply to the IRS segment are described below:
During the life of an IRS until the maturity day, a daily settlement of profit and losses for the variation of the NPV of the portfolio of a Clearing Member occurs due to fluctuations in the zero coupon since its last revaluation by BME CLEARING.
It is the amount of accrued interest on the accumulated VM. It is a payment or charge to offset the imbalance between bilateral contracts and an IRS in CCP.
Payment of fixed or floating coupons of registered transactions will be the result adding up the coupons to be received, less the coupons to pay with the same effective payment date, as set out in the Circular “Clearing Timetable and Procedure".
Refers to additional payments of registered transactions, settlement will be done by adding up additional payments to be received and subtracting the additional payments to be made with the same cash payment date.