Polish clearing house shares knowledge with the National Securities and Stock Market Commission in Ukraine

• IRGiT is expanding its international activity by sharing experience with the Ukrainian National Securities and Stock Market Commission (NSSMC) in organising clearing for the Polish electricity and gas exchange market.
• The NSSMC’s experts improved their knowledge in the field of financial clearing of commodity-related exchange transactions during a special training in Kiev.

The workshop “Financial clearing of commodity-related exchange transactions – case of IRGiT and TGE” took a place on January 18, 2022 with the participation of the representatives of the Clearing House of the Polish Commodity Market and the Polish Power Exchange.

“In line with the expectations of the NSSMC, we addressed mainly the aspects related to the operation of IRGiT in the non-CCP model. Our history shows that this model works very well in emerging markets, where, in addition to safeguard measures, need to focus on the costs of participation in the collateral system borne by market participants. We are convinced that learning about the experience of IRGiT and the Polish market will contribute to the selection of the optimal model of energy and gas market clearing by the Ukrainian side” said Łukasz Goliszewski, Vice-President of IRGiT.

During the workshop, the participants learnt about the international experience of their colleagues and discussed the following issues: structure of the Clearing House of the Polish Commodity Market and its role in the Polish electricity and gas market; cooperation of TGE with energy and financial regulators; difference between futures and forward contracts; how to ensure the right balance between the costs and security in the electricity and gas market.

The event was a part of an EU project “Assistance to the NSSMC in improvement of Ukraine’s energy commodity markets and commodity products organized trading in Ukraine” and was organised exclusively for the representatives of the regulators.

Reference information:

IRGiT is responsible for the financial settlement of exchange transactions and the safety of markets settled by IRGiT. Currently, the Clearing House clears and settles transactions executed on TGE markets, using state-of the-art IT systems and proprietary settlement models. IRGiT ensures the complete security of trading on the TGE through its clearing guarantee system. The system solutions and control procedures implemented by IRGiT effectively protect market participants against all risks, including those related to the insolvency of exchange participants. Each day, IRGiT processes transactions executed by its more than 50 direct members and over 200 clients of brokerage houses cooperating with 10 banks.

TGE is a pioneer in implementing innovative solutions in the field of commodity trading. As the only licensed commodity exchange in Poland operating under the Act on Commodity Exchanges, TGE holds a permit to operate a regulated market. TGE is supervised by the Polish Financial Supervision Authority with regard to trading on the markets operated by the exchange, including electricity, natural gas, property rights, CO2 emission allowances and – since 2020 – also agricultural and food commodities.