Financial settlement

OMIClear assumes the role of Settlement System of the cleared positions. All the details concerning the procedures and timings of the financial settlement carried out by OMIClear are included in its Instruction B08/2014 - Financial Settlement (available for download here).

OMIClear is a participant of the Trans-European Automated Real-time Gross Settlement Express Transfer System (TARGET2), acting as Ancillary System and Direct Participant. TARGET2 is considered a special settlement system designated by Settlement Finality Directive.

Under the Ancillary System role:

  • OMIClear submits every day a XML file in the integrated central technical infrastructure of TARGET2 called Single Share Platform (SSP).
  • This payment instruction is based on a settlement procedure called ‘simultaneous multilateral settlement’, by which the ‘RTGS accounts’ of the respective settlement banks are debited and credited with the highest priority feature, in ‘one-shot-mode’, following an ‘all or nothing’ approach.
  • The aforementioned procedure allows OMIClear to pre-announce the financial settlement through the SSP of TARGET2. Therefore, besides the reports provided in the MiClear system on clearing session D, the payment agents (Clearing Members themselves or their Financial Settlement Agents) have and additional channel to confirm the amounts to be cash settled on the value-date of D+1 - the so called ‘information period’.

There is just one single settlement cycle called ‘Daily Financial Settlement’ applicable to the cash settlements arising from all positions cleared regarding all the services on which OMIClear assumes the role of CCP: Service on Power Derivatives Contracts and Service on Natural Gas Derivatives Contracts.