ICSD Bonds

What we do

The Management Companies with which CC&G currently has agreements for the ICSD Bond Section are:

  • Borsa Italiana S.p.A., only for the Financial Instruments traded in the MOT Market – EuroMOT segment and in the ExtraMOT Market;
  • EuroTLX Sim S.p.S, only for the financial instuments that settle in the ICSDs (Euroclear Bank S.A. and Clearstream Banking Luxembourg) 
  • Hi-MTF Sim S.p.A., only for the Financial Instruments that settle in the ICSDs (Euroclear Bank S.A. and Clearstream Banking Luxembourg).

Collateral

To cover Initial Margins:

Securities (Max 50% from two or more Issuer or 45% from one Issuers)

  • Austria, Belgium, Finland, France, Germany, Italy, Ireland, Netherlands, Spain Government Bonds traded on MTS Market with application of limits

Cash (50%)

  • only Euro Central Bank Money through Target 2 Direct Debit (CCP have this power being Ancillary system of Target2);

To cover Default Funds Cash (100%)

  • only Euro trough Target 2 Direct Debit.

Pre-Settlement

CC&G follows the Intended settlement date netting criteria in the creation of settlement balances

Net settlement balances are created by CC&G and sent to ICSDs on ISD-1

Netting Rules

MT541, MT543 samples

Settlement Data Service

Default management

All CC&G procedures, including the Default Management are aimed to work out the default of a Clearing Member in the seamless and fastest way, taking into account the non-defaulting Participants and the entire market system

In case of default of a participant, market integrity is preserved by a multi tiered financial safeguard system

Default management