Rules concerning collateral are set out in the Rulebook for the Physical Markets, enclosure 4, section 2. This section will give a short overview of the rules concerning calculation and posting of collateral.

Posting of collateral

Collateral can be posted as cash on a pledged account or as an on demand guarantee.

For both the pledged account, and the on demand guarantee a predefined template exists. Each settlement bank is familiar with the templates. Please contact Nord Pool Spot AS if you would like a copy of the documents or download them from our websites under account agreements. Aggrements and guarantees made out with a wording that deviates from the templates supplied by Nord Pool Spot will not be approved. The templates are also enclosures to the Rulebook for the Physical Markets.

The pledged account must be opened with a bank that Nord Pool Spot has approved as settlement bank. The complete list of approved settlement banks can be found here. The pledged account can also be used for settlement of daily trades.

Monitoring of collateral

The current collateral call presented by Nord Pool Spot AS can be monitored through the security report. This report is distributed as a pdf attachment to an e-mail in the morning of every clearing day. One of the columns in the security report is named collateral call. The total collateral that has to be available is stated in that column. The collateral has to be available before 11:00 on the same day. A sum equal, or larger than, this has to be available as cash on the pledged account, or as an on demand guarantee. On the security report there is also a column for account balance, and a column for on demand gurantee.