Risk Management Improvements on Climex

By setting up Fortis Bank NL Escrow Bank Accounts for all spot members, Climex and APX-ENDEX have ensured the following advantages:

• The Escrow Agreement structure reduces Members’ risk on collateral. The responsibility for the funds now lies with Fortis Bank NL which is a rated entity.
• Members will have the possibility to monitor mutations on the Escrow Account in real time.
• Service levels improve due to simplified internal processes. For new members the accession criteria are simplified, a western EU Bank Account is no longer required; Fortis will open an Dutch Escrow Account.
• The time span between depositing financial collateral and availability on the Platform will decrease substantially. In future we will even implement direct lines between Escrow Bank Accounts and Trading Collateral on platform.
• Cost reductions because of lower bank fees; higher interest rate on financial collateral; used to be EURIBOR-2%, now EURIBOR-1%.

Collateral from the previous Bank Account has already been transferred into the members’ new Escrow Account. For future transfers, members must use their new Fortis Escrow Bank Account. During the upcoming weeks, members will receive a Fortis Bank NL Escrow Agreement, which they will have to sign.