The clearing house has a billing system in place which enables Clearing Members to receive electronic invoices and data detailing the composition of charges. Clearing fees, Exchange fees and accrued interest are collected on the 6th business day of the successive month.
Settlement of equities, as a result of exercise and assignment of (physical deliverable) equity options, is undertaken at the local Central Securities Depository (CSD). ICE Clear Netherlands uses the services of Citi Bank N.A. in the capacity of Settlement Agent. Settlements are treated as OTC transactions in the local CSD, regular DVP/RVP instructions are generally communicated to the CSD.
|CENTRAL SECURITIES DEPOSITORY (CSD)||CSD PARTICIPANT||CSD ACCOUNT||SAFEKEEPING ACCOUNT|
Clearing Members may clear option trades which are either American-style or European-style. Long American-Style Options can be exercised by the Clearing Member at any time when the ICNL systems are open ("early exercise"). The exercise deadline is specified in the Contract Terms.
All derivatives positions that are held to the expiration date will be automatically exercised by ICE Clear Netherlands if the derivatives are in-the-money. All out-of-the-money or at-the-money series will expire. Clearing Members can instruct ICE Clear Netherlands to exercise out-of-the-money or at-the-money series through the electronic means made available to the Clearing Member. If Clearing Members prefer their in-the-money series not to be exercised on the expiration date, they can send an abandonment instruction to ICE Clear Netherlands through the electronic means made available to the Clearing Member. The deadlines are specified in the Contract Terms. Once the deadline has passed, ICE Clear Netherlands will assign the short positions for the number of contracts that are exercised.
At end of day, ICE Clear Netherlands will allocate the exercises ("assign") randomly to the short positions for the number of contracts that are exercised.
Where the volume available for assignment exceeds the exercised volume, the available lots are assigned on a random basis, one lot at a time. Each short lot therefore has an equal chance of being selected for assignment. If the volume available for assignment in an option contract exactly matches the volume which has been exercised (i.e. if the short volume equals the exercised volume), all the short volume is assigned.
ICE Clear Netherlands makes a range of reports and data files available to Clearing Members. The reporting files contain all required information both in printable statements as well as in data files for further processing. All transactions and positions, as well as the settlement instructions and money movements, are reported in these files. ICE Clear Netherlands also generates each business day a full set of risk reports provide insight into margin requirements and the risk situation of open positions.
ICE Clear Netherlands offers a service to transfer derivatives positions within the position account structure of the clearing member (internal transfers) or between clearing members (external transfers).
Transfers between accounts of a single trading (Exchange) member or between two trading members of the same Clearing Member will be supported by ICE Clear Netherlands as long as the final beneficial owner is not changed. In order to transfer, the clearing member will need to instruct ICE Clear Netherlands through the electronic means made available to the clearing member. Transfers of options will be handled free of charge.
Transfers between trading members of different Clearing Members will be supported by ICE Clear Netherlands as long as the final beneficial owner is not changed. In order to transfer, both Clearing Members must instruct ICE Clear Netherlands through the electronic means made available to the Clearing Member. These transfers will be matched within ICE Clear Netherlands. Transfers of options will be handled free of charge.