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Market Definition - Serbia v1.7

This document is a part of the rules of the exchange operated jointly by BSP Regional Energy Exchange LL C and its affiliated companies. It is valid from 29 February 2012 until changed in accordance with the rules of the exchange themselves. BSP Regional Energy Exchange LL C

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Table of Contents Table of Contents ...................................................................................................................... III 1 Definition of Terms .................................................................................................................. 1 2 Serbian Electricity Day-ahead Market ..................................................................................... 7 2.1 Exchange Trading ............................................................................................................. 7 2.1.1 Tradable Products ..................................................................................................... 7 2.1.2 Market Auction Sessions ........................................................................................... 7 2.1.3 Market Continuous Sessions ..................................................................................... 8 2.2 Rollback Procedure........................................................................................................... 8 2.2.1 Auction Trading Rollback Procedure ......................................................................... 8 2.2.2 Continuous Trading Rollback Procedure ................................................................... 9 2.3 Submission For Clearing ................................................................................................... 9 2.3.1 Products .................................................................................................................... 9 2.3.2 Phases of Submission For Clearing ............................................................................ 9 2.4 Trading Calendar .............................................................................................................. 9 3 Serbian Electricity Clearing .................................................................................................... 11 3.1 Clearing Records ............................................................................................................. 11 3.1.1 Elements of the Invoice ........................................................................................... 12 3.1.2 Offset Report ........................................................................................................... 14 3.1.3 Physical Settlement Report ..................................................................................... 15 3.1.4 Forwarding the Clearing Records ............................................................................ 15 3.1.5 Reporting of Errors .................................................................................................. 15 3.2 Settlement ...................................................................................................................... 16 3.2.1 Settlement of Clearing Transactions ....................................................................... 16 3.2.2 Physical Settlement ................................................................................................. 16 3.3 Financial Guarantees ...................................................................................................... 17 3.3.1 Determination of the Amount of Initial Financial Guarantees................................ 17 3.3.2 Trade Limit............................................................................................................... 17 3.3.3 Deposit Sub-account and Interest ........................................................................... 18 BSP Regional Energy Exchange LL C

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3.4 Default ............................................................................................................................ 19 3.4.1 Procedures for Regulating Cases of Default ............................................................ 19 3.4.2 Costs ........................................................................................................................ 19

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1 Definition of Terms Affiliate Member................... an Exchange Participant whose Exchange Participation depends on Exchange Participation of an Exchange Member that it belongs to. Agreed Interest Rate ............. the interest rate for the cash on the Deposit Account at a Settlement Bank agreed by Agreement On Interest Rates. Agreement On Interest Rates .................................. an agreement between Settlement Bank and BSP on the interest rates for the cash on the Deposit Account. Auction Session .................... a Trading Session in Auction Trading. Auction Trading .................... the manner of Trading where matching only occurs once in the Price Determination Phase. Banking System .................... the system used by Settlement Bank for performing the financial settlement BSP ....................................... either one or many of BSP REE and/or its affiliated companies that jointly operate the Exchange and respective Trading and Clearing systems in accordance with the Rules. BSP REE................................ company BSP Regional Energy Exchange LL C with registered office in Ljubljana, Slovenia. BSP Serbia ............................ company BSP SOUTHPOOL DOO Beograd with registered office in Beograd, Serbia. Business Day ......................... days from Monday to Friday on which the bank transfers in Serbia could be provided. Call Phase ............................. a Session Phase in the Auction Session when Exchange Participants can enter and manage their Orders. Clearing ................................ a set of procedures that include registration, invoicing and settlement, as well as collateralisation of Transactions. Clearing Member .................. an Exchange Participant. BSP Regional Energy Exchange LL C

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Clearing Member Group ....... the group of Clearing Members, of which the members are an Exchange Member and all Affiliate Members that belong to this Exchange Member. Clearing Participation ........... the right to participate in respective Clearing system. Clearing Record .................... the Invoices and accompanying reports providing information on procedures effected in Clearing of Final Transactions. Clearing Transaction ............. a transaction established within the process of registration of Final Transaction registered for Clearing that forms the basis for financial settlement. Continuous Session............... a Trading Session in Continuous Trading. Continuous Trading .............. a manner of Trading on BSP where matching occurs during the Trading Phase whenever conditions for it emerge. Country of BSP Operation .... a country in relation to which BSP is operating (a) Market and/or a Clearing system(s). Default.................................. an occurrence when a Clearing Member has not met its obligations according to the Rules (it has not made either a scheduled payment or a scheduled delivery or a timely posting of required Financial Guarantees) or occurrence of an incident and/or existence of circumstances on the basis of which BSP may conclude that a Clearing Member is either not able or is expected not to be able to fulfil its obligations. Delivery Day ......................... the day of physical fulfilment of Transactions. Deposit Account ................... a cash account opened at Settlement Bank on which financial guarantees paid in cash are kept. Exchange Member ................ an independent Exchange Participant. Exchange Participant ............ an Exchange Member or an Affiliate Member.

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Exchange Trader ................... an employee of an Exchange Participant, nominated by Exchange Member and admitted by BSP as Exchange Trader for a maximum of one Exchange Member and for any number of the Exchange Member’s Affiliate Members, authorised to participate in Trading on the individual Markets on the Exchange Participant’s behalf. Final Transaction .................. a Transaction which cannot be broken. Financial Guarantee .............. any collateral that a Clearing Member has to deposit as insurance for the fulfilment of his liabilities towards BSP. Freeze Phase ........................ a Session Phase in the Auction Session when Market Supervision can oversee and test outcomes of the Auction and manage the Orders entered during the Call Phase. Inactive Phase ....................... a Session Phase in either Auction Session or Continuous Session or Submission For Clearing Submission when Exchange Participants can only access and download the results of their Trading. Invoice .................................. daily invoice for energy purchase or sale. Market .................................. a market operated by BSP. Market Participant ................ an Exchange Participant that has been admitted to an individual Market. Market Participation ............. the right to participate in Trading in the individual Market. Market Supervision ............... the Exchange Body responsible for the supervision and surveillance of the trading operations and of the rights within the Trading System. Members Chamber ............... an Exchange Body established in accordance with the Rules.

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Multilateral Clearing Mechanism ............................. a clearing mechanism provided by BSP as a central counterparty to all financial rights and obligations from the Transactions cleared within, resulting in a single netted financial right and/or obligation of an individual party of any number of such Transactions in relation to that central counterparty. Net Creditor .......................... Clearing Member that has, in respect to individual Settlement Day and Clearing Participation, net financial liabilities towards BSP. Net Debtor............................ Clearing Member that has, in respect to individual Settlement Day and Clearing Participation, net financial receivables towards BSP. Non-Business Day ................. days from Saturday to Sunday and public holidays in Serbia on which bank transfers could not be provided. Notification........................... a document that states a commitment of BSP towards the Clearing Member or Clearing Member towards BSP on respective Trading Day, issued by BSP for the purposes of the Rules with respect to the relations between BSP and respective Clearing Member. Offset Report ........................ a report provided by BSP on the offset financial rights and obligations pursuant registration of individual Final Transactions either assumed by or assigned to BSP in the Multilateral Clearing Mechanism. Order .................................... an either sell or buy order entered into BSP Trading System. Order Book ........................... a book containing all Orders entered in the Trading System, including their status at any given time, for at least as long as the Final Transactions from the individual are registered in the Clearing. Originating Market Participant ................................ a Market Participant that has entered an Order in Submission For Clearing. Physical Settlement Report .. a report provided by BSP on the net physical rights and/or obligations arising from registered Final Transactions. BSP Regional Energy Exchange LL C

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Post-trading Phase ............... a Session Phase in the Auction Session when Exchange Participants can access and download the results and file an objection. Price Determination Phase ... a Session Phase in the Auction Session when matching is executed and market clearing price determined. Products Definition ............... a Definition setting out the Products traded at the Exchange in accordance with the General Rules and Trading Rules. Receiving Market Participant .................................. a Market Participant that has been selected as the counterparty in an Order entered in Submission For Clearing. Rules ..................................... the whole set of rules applicable in Trading and Clearing in the Markets. Serbian Electricity Clearing ... .................................. the clearing system operated by BSP for Clearing of Transactions in Electricity delivered in Republic of Serbia, operated in accordance with this Market Definition. Serbian Electricity Day-ahead Market ..................... a Market for Trading in electricity delivered in Republic of Serbia the following day, operated in accordance with this Market Definition. Session Phase ....................... a phase in an individual manner of Trading. Settlement Account.............. a cash account opened at Settlement Bank through which net financial settlement is performed. Settlement Bank ................... a bank in which BSP has opened a settlement and deposit account; the settlement bank may be either a commercial bank or the settlement system itself or a central bank. Settlement Day..................... a day when settlement on individual Markets is performed in accordance with respective Market Definition; Settlement Days for financial settlement and physical settlement on an individual Market may differ, as well as some Markets may have several Settlement Days for financial and/or physical settlement of a Product.

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Submission For Clearing ....... a manner of Trading on BSP, where two individual Market Participants jointly agree on a Transaction they have concluded outside Exchange (OTC) in order for it to become subject of Clearing by BSP. Submission For Clearing Session.............................. a Trading Session in Submission For Clearing. Trade Limit ........................... a limit which is established by means of an amount in terms of money within which the Exchange Member and its Affiliated Members jointly can put buy orders in Trading System on a Trading Day, set by BSP according to the Rules. Trading ................................. the whole set of actions performed by Exchange Traders at the Exchange, e.g. act of entering or withdrawal of Orders in the Trading System. Trading Day .......................... a day when Trading on an individual Market can be conducted. Trading Phase ....................... a Session Phase in either Continuous Session or Submission For Clearing Session. Trading Session ................................. Period of Trading for the individual Products with the same delivery day and the same manner of trading from the time a market opens until it closes. Transaction ........................... either a transaction that Exchange Participants have concluded in a Market or a transaction concluded between Market Participants outside Exchange submitted for Clearing by BSP.

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2 Serbian Electricity Day-ahead Market (1)

For Market Participation in the Serbian Electricity Day-ahead Market Clearing Participation in the Serbian Electricity Clearing is required.

(2)

For the purposes of delegation of members to Members Chamber the Country of BSP Operation of Serbian Electricity Day-ahead Market is Republic of Serbia.

2.1 Exchange Trading 2.1.1 Tradable Products (1)

Exchange Trading with Products on the Serbian Electricity Day-ahead Market is carried out in Auction Trading and Continuous Trading sessions.

(2)

Products, as defined by Products Definition, admitted to the Serbian Electricity Day-ahead Market are the following: ď‚&#x;

Continuous Trading: a) BASE, b) PEAK, c) OFF-PEAK1, d) OFF-PEAK2.

ď‚&#x;

Auction Trading: a) HOURLY PRODUCTS.

2.1.2 Market Auction Sessions (1)

In the Serbian Electricity Day-ahead Market, the Auction Trading schedule on the Trading Day is conducted in the following sessions and respective Session Phases: a) Call Phase shall take place from 08:00 to 10:15, b) Freeze Phase shall begin at 10:15 and may last until 10:25, c) Price Determination Phase shall take place immediately after the Freeze Phase and shall end by 10:35 at latest, BSP Regional Energy Exchange LL C

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d) Inactive Phase shall take place immediately after the Price Determination Phase and shall last until the end of the Trading Day.

2.1.3 Market Continuous Sessions (1)

In the Serbian Electricity Day-ahead Market, the Continuous Trading schedule on the Trading Day is conducted in the following sessions and respective Session Phases: 1) Trading Phase shall take place from 08:00 to 12:00, 2) Inactive Phase shall take place from 12:00 to 24:00.

2.2 Rollback Procedure (1)

The reason for the implementation of the rollback procedure is a failure of one or more processes in Trading that cause a situation where by the deadlines and in the manner specified in paragraph (1) of point 2.1.2 [Market Auction Sessions] and paragraph (1) of point 2.1.3 [Market Continuous Sessions] above, Trading cannot be run and/or does not produce correct results.

2.2.1 Auction Trading Rollback Procedure (1)

A rollback procedure will be applied, whenever for a given day the Auction Trading cannot be run and/or does not produce correct results by a given hour, either since: a) the Trading System cannot receive Orders from Market Participants; or b) BSP has technical connection problems with the Trading System; or c) The Trading System is unable to calculate market results.

(2)

Market Supervision will immediately inform Exchange Trader about rollback procedure by suitable means.

(3)

Modification of existing Orders and submission of new Orders will be enabled for up most 20 minutes.

(4)

New Price Determination Phase shall take place after deadline specified in paragraph (3) of 2.2.1 [Auction Trading Rollback Procedure] above.

(5)

In case that Trading cannot be run and/or does not produce correct results BSP will inform Market Participants that no results for the specific Auction Trading will be available. BSP Regional Energy Exchange LL C

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2.2.2 Continuous Trading Rollback Procedure (1)

A rollback procedure will be applied, whenever for a given day the Continuous Trading cannot be run or does not produce correct results by a given hour, either since: a) the Trading System cannot receive Orders from Market Participants; or b) BSP has technical connection problems with the Trading System.

(2)

All Orders in Order Book will be deactivated and submission of new Orders will be disabled.

(3)

Market Supervision will inform Exchange Trader about rollback procedure by suitable means.

2.3 Submission For Clearing 2.3.1 Products (1)

Products, as defined by Products Definition, available for submission for Clearing by BSP are the following: a) BASE, b) PEAK, c) OFF-PEAK1, d) OFF-PEAK2.

2.3.2 Phases of Submission For Clearing (1)

In the Submission For Clearing, the schedule on the Trading Day is conducted in the following Session Phases: 1) Trading Phase shall take place from 08:00 to 12:00, 2) Inactive Phase shall take place from 12:00 to 24:00.

2.4 Trading Calendar (1)

Trading on the Serbian Electricity Day-ahead Market shall take place every day (7-daytrading) from Monday to Sunday, including non-working days and public holidays.

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3 Serbian Electricity Clearing (1)

For Clearing Participation in Serbian Electricity Clearing a Clearing Member shall be required to conclude a Physical Settlement Domain Agreement with JP Elektromreža Srbije, Beograd, resulting in a valid and effective Physical Settlement Account at all times of Clearing Participation in Serbian Electricity Clearing.

(2)

Final Transactions concluded in the Serbian Electricity Day-ahead Market are cleared by using Multilateral Clearing Mechanism within Serbian Electricity Clearing.

3.1 Clearing Records (1)

Clearing Records in the Serbian Electricity Clearing are the following: a) Physical Settlement Report of net physical liabilities and/or receivables; b) Notification for energy purchase and/or sale; c) Invoice for energy purchase and/or sale; d) Offset Report of the Clearing Member’s net financial liability or net financial receivables.

(2)

BSP shall send individually to each Clearing Member on each Trading Day Physical Settlement Report of net physical liabilities and/or receivables by 12:50.

(3)

BSP shall send to every Clearing Member notifications regarding all Final Transactions concluded on the Serbian Electricity Day-ahead Market: a) If Trading Day is Business Day, notifications for all Final Transactions shall be issued on that day; b) If Trading Day is Non-Business Day, notifications for all Final Transactions shall be issued on the first Business Day after the Trading Day.

(4)

BSP shall send individually to each Clearing Member the following notifications: a) Notification for energy purchase by 14:30; b) Notification for energy sale by 14:30;

(5)

Notification includes net values and is issued in EUR with informative value in RSD, calculated on a basis of National Bank of Serbia’s official middle exchange rate of Dinar on Trading Day.

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(6)

BSP shall send individually to each Clearing Member on the first Business Day after the Trading Day the following Clearing Records: a) Invoice for energy purchase in EUR, payable in RSD (converted from EUR on the basis of National Bank of Serbia’s official middle exchange rate of the Dinar in accordance with the provisions of paragraph (7) below), by 14:30; b) Invoice for energy sale in EUR, payable in RSD (converted from EUR on the basis of National Bank of Serbia’s official middle exchange rate of the Dinar in accordance with the provisions of paragraph (7) below), by 14:30; c) Offset Report of the Clearing Member’s net financial liability or net financial receivables by 14:30.

(7)

Invoice for energy purchase and sale is issued in EUR. The payments shall be executed in RSD, while the values shall be converted from EUR to RSD as follows: a) the pre-tax value of Transactions is converted on the basis of National Bank of Serbia’s official middle exchange rate of the Dinar for the Settlement Day for financial settlement as stated on the Invoice; and b) the base for VAT is, in accordance with the Serbian laws applicable to VAT, calculated by conversion of the pre-tax value of Transactions on the basis of National Bank of Serbia’s official middle exchange rate of Dinar for the Delivery Day, with the subsequent amount of VAT corresponding to it. c) if Delivery Day is Non-Business Day, for conversion of pre-tax values is used National Bank of Serbia’s middle exchange rate of the Dinar from the last known Business Day.

(8)

Financial settlement shall be carried out on the basis of Invoices and in accordance with the Offset Report in due time.

3.1.1 Elements of the Invoice (1)

Invoice for energy purchase or sale shall consist of the following elements: 

data on the Clearing Member (buyer or seller), which shall include: address of the company, postcode, VAT number and number of the company’s Transaction Account;

data on BSP: address of the company, postcode, registration number, VAT number and number of the company’s Settlement Account kept at the Settlement Bank;

the place and date of Clearing;

the type of Invoice: Invoice for energy purchase or Invoice for energy sale;

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the successive number of the Invoice;

the Clearing Member’s identification number;

the Trading Day;

the Delivery Day of execution of the Transaction arising from Trading;

the Settlement Day;

the National Bank of Serbia’s official middle exchange rate of the Dinar for the Delivery Day;

the table of Final Transactions for the purchase or sale of electricity shall consist of: a) the successive number of the item; b) the Transaction identifier; c) the code of the Position Account; d) the Product; e) the Delivery Day; f)

the price per unit (in EUR/MWh);

g) the volume (in MWh); h) pre-tax value of Transaction in EUR; i)

the base for VAT, converted on the basis of official middle exchange rate of National Bank of Serbia for the Delivery Day;

j)

the VAT rate;

k) the VAT amount in EUR; l)

the VAT amount in RSD;

m) the total value including VAT – the sum of the values stated in accordance with the lines h) and k) above in EUR; 

the amount of Invoice in EUR, written in words;

the sum of pre-tax values of Transactions for payment in EUR;

the clause stating that the sum of pre-tax values of Transactions shall be paid in RSD, converted on the basis of official middle exchange rate of National Bank of Serbia for the Settlement Day;

the sum of VAT amounts for payment in RSD;

the reference number;

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(2)

the data on person that issued the invoice;

the signature(s) of (a) person(s) authorised by BSP.

Consisting elements of Invoice could be changed according to the changes of legal requirements.

3.1.2 Offset Report (1)

For the Clearing Member, in whose name the Invoice for energy purchase and Invoice for energy sale for the same Trading Day was issued, BSP shall prepare an Offset Report of its financial net liability or net receivables.

(2)

The Offset Report of a Clearing Member’s net liability or net receivable shall consist of the following items: 

the gross financial liability from the Invoice for energy purchase: a) the sum of pre-tax values of Transactions for payment in EUR and b) the sum of VAT amounts for payment in RSD;

the gross financial receivables from the Invoice for energy sale: a) the sum of pre-tax values of Transactions for payment in EUR and b) the sum of VAT amounts for payment in RSD;

the amount of the net receivable or net liability, calculated as the difference between the gross financial liability and gross financial receivables: a) between the sums of pre-tax values of Transactions for payment in EUR and b) between the sum of VAT amounts for payment in RSD;

the clause stating that the net value of pre-tax values of Transactions in EUR shall be paid in RSD, converted on the basis of official middle exchange rate of National Bank of Serbia for the Settlement Day;

the Settlement Day;

the Settlement Bank at which a Settlement Account has been opened;

the number of the Settlement Account;

the reference number;

the signature(s) of (an) authorised person(s) of BSP.

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(3)

Consisting elements of Offset Report could be changed according to the changes of legal requirements.

3.1.3 Physical Settlement Report (1)

Physical Settlement Report is a statement of net physical liabilities and/or physical receivables for each Settlement Day for physical settlement based on the Final Transactions concluded in the Serbian Electricity Day-ahead Market.

3.1.4 Forwarding the Clearing Records (1)

The BSP shall forward the Clearing Records in written form by either e-mail or telefax and also, if appropriate and/or upon request, by regular mail.

3.1.5 Reporting of Errors (1)

A Clearing Member may file a written complaint with the BSP as a consequence of any mistakes or errors in the Clearing Records provided in accordance with the provisions of 1) lines a) and b) and c) in paragraph (6) of point 3.1 [Clearing Records] above by 15:30; 2) paragraph (2) of point 3.1 [Clearing Records] above by 13:10; on the day of their respective submission to the Clearing Member by BSP. The complaint must contain the individually identification of the items that are the subject of the complaint.

(2)

A Clearing Member shall submit any complaints in writing, by fax or by e-mail.

(3)

BSP shall send a written reply to complaint filed in accordance with the provision of line 1) in paragraph (1) above by 16:00 on the same day, which shall be final for the purposes of invoicing.

(4)

BSP shall send a written reply to complaint filed in accordance with the provision of line 2) in paragraph (1) above by 13:30 on the same day. In accordance with the aforementioned written reply BSP shall issue corrected Physical Settlement Report of net physical liabilities and/or receivables to each affected Clearing Member by 13:40 on the same day, which shall be final for the purposes of Physical Settlement.

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3.2 Settlement 3.2.1 Settlement of Clearing Transactions (1)

Settlement Day for financial settlement is 2 (two) Business Days after the date on which Invoices are issued.

(2)

The Net Debtor must settle its financial liabilities arising from Clearing Transactions by 12:00 on the Settlement Day by effecting payment into the Settlement Account kept by the Settlement Bank. If Clearing Member fails to settle its liabilities in prescribed time, BSP shall cash in its posted Financial Guarantees.

(3)

Clearing Members must settle all payments in cash.

(4)

On the basis of the Offset Report, BSP shall send to the Settlement Bank money orders for transferring funds from the Settlement Account to the Transaction Accounts of Net Creditors.

(5)

The Settlement Bank shall effect the Transactions based on the money orders received by the BSP via the Banking System on the same Business Day, i.e. Settlement Day.

3.2.2 Physical Settlement (1)

Settlement Day for physical settlement is the Trading Day.

(2)

BSP and each individual Clearing Member are both responsible for the registration of schedules of net physical liabilities and/or receivables for each Settlement Day. Clearing Member shall register respective schedules either a) in accordance with the Physical Settlement Report sent in accordance with the paragraph (2) of point 3.1 [Clearing Records] in case no corrected Physical Settlement Report was sent afterwards; or b) in accordance with the corrected Physical Settlement Report sent in accordance with the provision of paragraph (4) of point 3.1.5 [Reporting of Errors] in case it was sent.

(3)

Registration of schedules shall proceed according to the Physical Settlement Domain Rules and in accordance with the instructions from JP Elektromre탑a Srbije, Beograd.

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3.3 Financial Guarantees (1)

A Clearing Member Group of which members wish to trade on the Serbian Electricity Day-ahead Market shall deposit Financial Guarantees jointly amounting to at least in the sum of amounts determined as required Initial Financial Guarantees in accordance with the provisions of point 3.3.1 [Determination of the Amount of Initial Financial Guarantees] below of individual members of the Clearing Member Group either: ď‚&#x;

in the form of cash deposit on the Deposit Account opened by BSP at the Settlement Bank in Serbia or;

ď‚&#x;

in the form of Bank Guarantee of which the beneficiary is BSP Serbia. According to BSP own judgment and without citing reasons, BSP may reject submission of Bank Guarantee as a form of Financial Guarantee.

3.3.1 Determination of the Amount of Initial Financial Guarantees (1)

Initial Financial Guarantee shall be determined by BSP based on the anticipated value of trading (purchase transactions) that may be established on the basis of anticipated volume of trading proposed by Market Participant.

(2)

The amount of Initial Financial Guarantee shall be established with the following calculation method: the anticipated value of trading for one day shall be multiplied by a factor of 5 (five).

(3)

Clearing Member shall not be permitted to trade on the Serbian Electricity Day-ahead Market before it has submitted the Initial Financial Guarantee to the BSP.

(4)

Initial Financial Guarantees shall be revised from time to time.

3.3.2 Trade Limit (1)

In the course of a Trading Day BSP shall monitor the Trade Limit of every Clearing Member Group.

(2)

For the purposes of calculation of Trade Limit, the conversion from RSD to EUR shall be calculated on the basis of official middle exchange rate of National Bank of Serbia for the preceding Business Day.

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(3)

If a Clearing Member Group wishes to increase the volume of trading, it may submit additional Financial Guarantee to the BSP at any point in time. The Clearing Member Group must notify the BSP in writing of the intended increase in Trade Limit. The BSP shall increase the Trade Limit for an individual Clearing Member Group on a Trading Day, which follows the day of receipt of the confirmation that the necessary funds have been paid into the Deposit Account or receipt of a Bank Guarantee.

3.3.3 Deposit Sub-account and Interest (1)

For each Clearing Member, holding Clearing Participation in Serbian Electricity Clearing, that posts Financial Guarantees in the form of a cash deposit, BSP shall open a Deposit Sub-account in the frame of Deposit Account opened at Settlement Bank.

(2)

The Deposit Account shall be kept in EUR and/or RSD unless BSP determines otherwise.

(3)

In case of encashment of funds posted in EUR, all costs arising in the procedure of conversion from EUR to RSD shall be borne by the Clearing Member whose funds are being encashed.

(4)

On a basis of Irrevocable authorisation issued by a Clearing Member for using funds on Deposit Sub-account for financial settlement arising from Clearing Participation in Serbian Electricity Clearing, these funds may be disposed of by the BSP as the manager of the Deposit Account. These funds shall be completely separated from the assets of BSP.

(5)

BSP shall recognise interest on deposited Financial Guarantee that is administered in a Deposit Sub-account in the amount of the Agreed Interest Rate.

(6)

The interest shall be added pertaining to funds on Deposit Sub-accounts in amount, by the deadlines and in the manner specified in the valid Agreement On Interest Rates. The Agreement shall be provided to all Clearing Participants in Serbian Electricity Clearing which have Financial Guarantees in a form of Deposit.

(7)

BSP pays out the interests to the Clearing Members Transaction Account on a first Business Day of a month that follows the month the interest relate to, or biannually if so agreed with Clearing Member.

(8)

The costs of keeping Deposit Account and Sub-accounts shall be borne by BSP.

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3.4 Default (1)

In case of a Default, a Clearing Member must immediately notify the BSP of all incidents that have taken place at its premises, and of all cases of the non-fulfilment of Clearing Member liabilities by any other Clearing Member, if it is aware of such cases.

3.4.1 Procedures for Regulating Cases of Default (1)

(2)

In the event that a Clearing Member Group fails to settle its liabilities arising from Clearing Transactions by 12:00 on a Settlement Day, its liabilities shall be settled by the BSP from the Financial Guarantee of the Clearing Member Group that failed to settle its liabilities by: ď‚&#x;

sending a money order to the Settlement Bank for transferring funds from the Clearing Member Group Deposit Sub-account to the Settlement Account, and/or

ď‚&#x;

sending a Bank Guarantee for encashment.

BSP shall calculate the new value of Trade Limit for each Clearing Member Group every Settlement Day after 16:00, when financial settlement is concluded. BSP shall notify Clearing Member Group of the new value of Trade Limit for the next Trading Day.

3.4.2 Costs (1)

A Clearing Member in Default shall be obliged to reimburse the BSP all costs and expenses incurred by the measures adopted pursuant to the Rules.

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BSP Market Definition Serbia v1.7  

BSP SouthPool Market Definition Serbia v1.7

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