OeKB is the first and currently only bank in Austria to offer settlement bank services on Nord Pool Clearing ASA, the marketplace for derivative contracts.
The services provided as a settlement bank in the derivatives market are:
- Accounts for Nord Pool market participants
- Reporting with the concentration bank, Nordea Bank Norge
- Payment processing
- Collateral Management for market participants
Provision of accounts
OeKB offers market participants EUR settlement accounts (non-pledged cash accounts) and EUR cash accounts pledged to Nord Pool).
Reporting with Nordea Bank Norge, the concentration bank
The reporting function consists of the daily notification to the concentration bank of the balances of the accounts administered by OeKB for the market participants, and the processing of participants’ margins, collateral and settlement requirements reported by the concentration bank.
Payment processing
As a settlement bank, OeKB settles the euro-denominated trades concluded by participants in the Nord Pool marketplace. This is done by posting the credit and debit instructions for cash settlement to their non-pledged cash accounts. OeKB currently offers this services for all trades settled in euros on Nord Pool.
Management of collateral for market participants
OeKB offers account monitoring and customised margin/collateral reporting services for Nord Pool market participants.
