To become a member of ICE Endex in respect of the spot or derivatives markets, a candidate must complete an application form, undergo a due diligence review and execute an agreement stating they will adhere to all Exchange regulations. All trades executed on the ICE platform are monitored by or attributable to responsible individuals who are accountable for the trading activities of both the member and the member's customers where applicable. The responsible individual is also responsible for the conduct of trades executed in the member's name.
To become a member of ICE Endex in respect of the gas storage markets, a candidate must enter into an agreement with the respective storage operator and become a Member of the relevant spot market by completing a membership form, By entering into the membership agreement, the member acknowledges that it will adhere to all Exchange regulations and regulations applicable to storage trading. All storage trades executed on the ICE platform are monitored by or attributable to a responsible individual who is accountable for the trading activities of the member. The responsible individual is also responsible for the conduct of trades executed in the member's name.
There are two categories of Exchange membership that determine the type of business which members may conduct at ICE Endex, as well as a Clearing Participant category. In addition to the Membership categories, a member's status as a clearer will also impact the type of business they may conduct.
General Participants* may trade their own** business and clients' business. They may also do give ups. If the General Participant is a clearing member as well, they may clear their own business, clients' business or clear for any other member of the exchange who is not a member of the clearing house.
Trade Participants* may trade their own** business, but may not trade on behalf of clients or do give ups. Likewise, if a Trade Participant is a clearer, he may only clear his own business.
*General Participant and Trade Participant categories of membership must either be clearing members or, as non-clearing members, must enter into a clearing agreement with a General Participant who is a clearing member.
**It is understood that "Own" business is business transacted solely for the benefit of that Member, a wholly owned subsidiary of that Member, the parent company of that Member, or a company in that Member's group of companies. Such business undertaken by a Member on behalf of another group company must not in turn be business undertaken on behalf of a third party.
The Participant Membership criteria, which an applicant must meet at the outset and must continue to meet as a Participant, are set out below. They are also detailed in the ICE Endex Regulations and Participants are expected to inform ICE Endex of failure or anticipated failure to meet the membership criteria.
An Applicant for Participant Membership Must:
- Satisfy ICE Endex that it is fit and proper;
- Maintain a properly established office (in a location which is acceptable to ICE Endex as it may determine in its absolute discretion) for the conduct of its business on ICE Endex;
- Provide details of the location of Responsible Individuals and ensure that such details (and any related information including order routing) are advised to ICE Endex upon request throughout the period of membership;
- Be able to demonstrate, to the satisfaction of ICE Endex, that it has sufficient systems and controls in place to ensure that all employees, agents and representatives who may act on its behalf or in its name in the conduct of business on ICE Endex are fit and proper with suitable qualifications and experience and adequately trained and properly supervised to perform such functions;
- Be a member of the clearing house or be accepted for such membership, or be a party to, or satisfy ICE Endex that it will become a party to, a clearing agreement with a clearing member;
- Be party to an Electronic User Agreement (EUA) which is in full force and effect;
- Where relevant, be authorised or otherwise exempt, licensed or permitted by the appropriate regulatory body to conduct business on the Market;
- Hold all necessary licenses, authorisations and consents, or benefit from available exemptions, so as to allow it to carry on business as a Participant on the Platform in accordance with all applicable laws and regulation; Satisfy ICE Endex that it enjoys the financial standing suitable for admission to membership supporting its claim by a copy of the last 3 years audited accounts (and thereafter the latest) or such evidence as the Directors may require; and
- Satisfy such other requirements of ICE Endex as they may stipulate, supplying such documents in support as ICE Endex requires.
Further criteria may be stipulated by ICE Endex in respect of ICE membership.
ICE Endex uses pre-determined levels of financial requirements established by the clearing house for those Members who are clearing members.
Therefore, in accordance with the financial requirements set by ICE Clear Europe:
- Clearing General Participants will have a minimum net capital requirement of $20million.
- Clearing Trade Participants will have a minimum net capital requirement of $20million.
- Non-clearing Trade Participants, General Participants will not have a minimum net capital requirement.
- Participants must comply with the financial resource requirements at all times.
Member and Authorisation Requirements
The following parties may be admitted as a Member:
- Investment firms within the meaning of article 1:1 of the Dutch Act on Financial Supervision (AFS) who hold a licence pursuant to article 2:96 AFS;
- Financial institutions within the meaning of article 1:1 AFS who hold a licence pursuant to article 2:11 AFS, but only if this licence allows them to also perform investment services and investment activities;
- Investment firms and financial institutions who have their statutory seat in a state that belongs to the European Economic Zone and who hold the equivalent of a licence mentioned under a or b respectively from the equivalent regulatory competent authority of their home country, provided that the financial institution in question is duly notified to the Dutch Central Bank or in case of an invest firm that such investment firm is duly notified to the AFM, pursuant to section 2:98 of the AFS;
- Investment firms and financial institutions that are exempted from having a license to perform investment services and investment activities pursuant to article 10 of the exemption regulation AFS;
- Other legal entities who – to the satisfaction of ICE Endex – have proved to be professionally active in trading power, natural gas, biomass and/or (financial) products related thereto.