OMIClear was constituted on April 6th 2004, having presently a share capital of 7,500,000 Euros, with OMIP as sole shareholder and sharing the various business support functions, in order to strengthen synergies.
As managing entity responsible for the Clearing Platform of the Iberian derivatives market, OMIClear performs a series of functions required for the regular and correct clearing and settlement of operations, namely:
- Admission of participants in the registration, clearing and settlement of operations;
- Support of the registration of operations and respective clearing and settlement;
- Taking on the position of Central Counterparty in the registered operations;
- Definition of the calculation formula and consequently the calculation and management of the guarantees due for the registration of operations and from carrying out Clearing Member functions;
- Control of the risk taken on by the holders of registered positions;
- Supervision, in coordination with the Supervisory Entities, of the procedures of registration, clearing and settlement of operations;
- Implementation of disciplinary powers in relation to the Clearing Members.
Through novation, OMIClear takes on the position of Central Counterparty to all operations it has registered, guaranteeing the fulfilment of obligation of both parties. In fact, once an operation is registered OMIClear manages the resulting positions, through its interposition as (central) counterparty of the operations, becoming the buyer in relation to a seller and a seller in relation to a buyer.
Therefore, virtually eliminating or reducing a series of risks, specifically:
- Credit - of one party not honouring its contractual commitments in relation to the other;
- Settlement - centrally ensuring the cash debits and credits multilaterally;
- Operational - given the market control and supervision procedures and mechanisms;
- Systemic - taking into account the introduction of multilateral netting in the operations.
With a view to guaranteeing the adequate performance of its functions and guaranteeing the credibility of the market, OMIClear uses various systems and procedures to control the risk taken on by market participants in relation to the registered positions, such as the deposit and management of guarantees.
OMIClear was initially the Clearing House of the Derivatives Market managed by OMIP, however it immediately widened its services to bilateral transactions (OTC), as well as relative to other energy based products, while taking advantage of the infrastructures and connections in place.
Amongst these activities the following can be included: interventions in VPP’s, in CESURS and the management of TSO guarantees.
For further information please visit the OMIClear Website.