GUARANTEES
In order to operate on the energy markets or on the PCE, Participants will submit – alternatively or cumulatively - financial guarantees as:
- first demand bank guarantee issued by banks registered as provided for in Article 13 of Legislative Decree no. 385 of 1 September 1993, and which have a long-term rating awarded by at least one of the following rating agencies: Standard & Poor's Ratings Services, Moody's Investor Service, Fitch and DBRS. The rating must be at least BBB- of the Standard & Poor’s or Fitch scales or Baa3 of the Moody’s Investor Service scale or BBB low of the DBRS scale;
- non-interest-bearing deposit to be made to the bank account held by GME with the bank in charge its Electricity Market treasury services.
PA Participants can provide guarantees only as non-interest-bearing deposits to be made to the bank account held by GME with the bank in charge of its Electricity Market treasury services.
In the Day-ahead Market (MGP), Intraday Market (MI-A/MI-XBID), and in the Spot Gas Market (MPGAS), use is made of the integrated guarantee management system (or "netting") characterised by an overall net exposure covered by a single amount of guarantee, without any segregation among the markets concerned.
For each type of guarantee that is submitted, the Participant can decide to divide the related amount on the basis of the operations to be carried out on the different markets managed by GME, or he/she/it can submit a guarantee for the netting markets and for the other markets/platforms.
Indeed, according to the terms and conditions defined in Technical Rule n. 04 ME, the Participant can allocate part of the guarantee given to cover the exposures that may arise both on the netting markets and on the MPEG, MTE, MTGAS and/or PCE, by submitting the guarantee allocation form that it is available here.
With regard to operations on the MI-XBID, the Participant, through the Local Trading System (LTS) platform, must reserve a guarantee amount from the portion intended for the netting markets for a specific flow date. This reserved amount can be modified at any time, it being understood that in case of a decrease, the reserved amount must not be committed.
Depending on the allocation defined, the guarantees provided by the Participant are reduced by an amount defined as maintenance margin, set at 3% of the total amount of the guarantees for the MGP/MI, MPGAS, MPEG, and PCE, and at 10% for the MTE and MTGAS.
Once the bank guarantee has been provided, its amount and/or period of validity can be updated of the amounts and/or of its validity period by submitting a specific form or its allocation can be changed.
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