Click on the Plus to put this page on your personal Quicklink list.   Composition and Calculation of the Collateral 

Electricity market

The margin requirement in the electricity spot market is structured as follows:

• The minimum collateral to be posted by every participant is EUR 100,000.
• From the weighted total of the individual variation in trading volume and the average of the net balances, a subtotal is calculated for the margin requirement for own-account trading and for trading on behalf of customers. These two values are added to the special margin requirement to arrive at the subtotal of the required margin.
• The basic margin requirement component represents the said subtotal of the margin requirement, and not less than the minimum collateral required from the trading participant.
• The risk premium is the euro amount to be added to the basic margin requirement of the trading participant. If its credit rating is (sufficiently) good, the trading participant is granted a discount (collateral reduction amount) which reduces the risk premium.  
• The total margin requirement is the sum of the basic margin and the risk premium.