Trades concluded on SEMOpx markets are followed by the transfer of payments between buyers and sellers. This involves clearing and settlement.
Settlement and Clearing
Trades concluded on SEMOpx require settlement and clearing. This process of ensuring the payment flows between the seller and the buy of each trade are concluded.
SEMOpx uses the services of European Commodity Clearing (ECC). They act as the clearing house for settlement and clearing of the SEMOpx day-ahead and intraday trading. Trading results are provided to ECC who becomes a central counterparty to the transactions. They then complete the payment flows between the relevant Exchange Members.
ECC works with more than 20 banks to conduct payments. The payment flows occur automatically, in a fast and secure way.
Nominations
ECC also provides for physical settlement of the trades through the nomination process with the TSO, SONI and EirGrid. The information they provide to the TSOs allows physical delivery of power to the buyer in the agreed amount at the agreed point of time.