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| TRADING AND SETTLEMENT |
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How to access the New MIC trading pages The e-MID client available from September 2010 includes the New MIC section "MIC_EUR": in order to access it, the System Administrator of the bank needs to configure the users for that section. Quotes and Trading The Best and Market pages are similar to the e-MID standard pages with the only difference that the names related to each quote are not disclosed. The information published in a quote is solely the following: side, rate, size, minimum size. The names of all New MIC participants are listed in the “Member” and “Member Details” pages. The auction functionality is disabled. The quotes -also for the same rate- are listed separately, exactly as in the e-MID standard pages. The windows for proposal and order management bear the same names as the transparent market section. When a quote is hit or lifted, the trade is automatically done provided that the terms of the order are consistent with the quote. Acceptance from the quoting side only takes place if the order is different from the quote for rate or amount, or both. In this case a 45 sec. deadline for acceptance or refusal applies. The trading system checks the consistency between the quotes and orders sent to the market and the residual collateral for each counterparty. This is aimed at preventing the input of quotes or conclusion of trades which exceed the value of collateral available for each participant. The operational limit on the New MIC of Target2 Indirect Banks also depends on the “CAPS” assigned by the respective agent banks. Settlement of trades New MIC Members (or Agent banks for indirect members) are automatically debited/credited by the CCP at the cut off time (9.00 am). Settlement has to be performed not later than 10.00 am. Should a bank fail to timely settle, CC&G will perform settlement at 12.00, therefore keeping the counterparty indemnified from the consequence of the fail. For indirect members, the agent bank can be the same already used for e-MID or another one specific for the collateralised market. Calculation of total net exposure The total net exposure consists of the cumulative sum of daily net exposures from the reference date onwards. The Daily Net Exposure (DNE) is equal to the difference between funds (including interests) that the Member is required to pay and those that it is entitled to receive on the same day by effect of Contracts stipulated on the Market.If the difference shows that the Member, on the reference day, is entitled to receive funds, the net exposure from that day is zero. Examples of the calculation of the Total Net Exposure are available on the CC&G website (www.ccg.it). Automatic settlement The automatic settlement of transactions takes place anonymously on Target2 by debiting or crediting the Member’s Target2 account or that of its cash Settlement Agent, using ancillary procedure No. 3 (the so-called "Bilateral Settlement”, i.e. net payment). CC&G sends the payment instructions concerning sums due to or from Members at 07:45/07:50 hours (starting of the “Notice Period”). The “debit period” commences at 9:00 and concludes at 10:00 hours. The “credit period” commences at 9:00 and concludes at 12:00 hours. |