Cash market
On the cash market, CCP Austria settles and clears all exchange transactions concluded in trading in CCP-eligible securities on Wiener Börse AG. In its function as the central counterparty, it assumes the risks of non-performance and default for all trades. All securities that have not been included in the clearing system of Wiener Börse AG are considered non CCP-eligible securities and trades in such securities must be fulfilled directly between the counterparties.
Clearing system
Settlement is done fully electronically through the reliable clearing system SICS (Settlement Information Clearing System).
SICS records all trades of a clearing and settlement period. Usually, this period is one trade day. Thus, only those balances are settled which result from this netting. This process helps to minimize the number of clearing and settlement transactions, and ensures efficient clearing up to international standards. SICS optimizes the clearing information provided to clearing members. This information is made available in a structured manner in the dialogue box (connection to SICS system) in real-near-time. Additionally, it is possible to receive the data via file transfer.
Settlement period
Exchange transactions in CCP-eligible securities must be fulfilled on the third clearing day after the conclusion of the trade (settlement day is t+3).
Default procedure
In the event of default of delivery, the clearing agency proceeds according to the following procedure:
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Separation procedure
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Covering procedure
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Cash settlement procedure (example)
For the duration of the default in delivery the following payments from the amount outstanding are due for the participating clearing member being in default:
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As per § 40 (8) and § 60 (1) of the CCP.A Clearing Rules penalty interest are calculated according § 48t of the Stock Exchange Act.
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As per § 40 (8) and § 60 (2) of the CCP.A Clearing Rules interest on arrears are calculated in the amount of the triply base rate .
Covering purchase (buy-in)
During the separation procedure, a Clearing Member who is in default of delivery can arrange for the retroactive covering of the shortfalls or instruct the Clearing House by written order to obtain cover for the shortfalls. The buy-in order should be made as early as possible in written form, per fax or per email.