OeKB is the first and currently only bank in Austria to offer settlement bank services on Nord Pool Spot AS, the physical marketplace for power trading in the Elspot and Elbas segments.
The services provided as a settlement bank in the spot market are:
- Accounts for Nord Pool market participants
- Reporting with Nord Pool Spot AS
- 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 Spot (pledged cash accounts).
Reporting with Nord Pool Spot AS
The reporting function consists of the daily notification to Nord Pool Spot AS 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 Nord Pool Spot.
Payment processing
As a settlement bank, OeKB settles the euro-denominated trades concluded by a participant 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.
Collateral management
OeKB offers account monitoring and customised margin/collateral reporting services for Nord Pool market participants.
