OMIClear was incorporated on April 6th 2004, having presently a share capital of 7,500,000 Euros totally owned by OMIP and OMIE (50% each) with which shares several business support functions.
OMIClear takes on the position of Central Counterparty (CCP) to all operations it has registered, guaranteeing the fulfillment of obligations of both parties. Once an operation is registered, OMIClear manages the resulting positions, becoming the buyer in relation to the seller and the seller in relation to the buyer, using various systems and procedures to control the risk taken on by market participants such as the deposit and management of guarantees.
Therefore, eliminates a series of operational risks, specifically:
- Credit - of one party not fulfilling its contractual commitments in relation to the other;
- Settlement - ensuring multilateral cash debits and credits;
- Operational - supported on the market control and supervision procedures and mechanisms;
- Systemic - taking into account the introduction of multilateral netting in the operations.
OMIClear was initially the clearing house of OMIP’s derivatives market, however it immediately widened its services to bilateral (OTC) trades, as well as relative to other energy based products, while taking advantage of the infrastructures and connections in place, namely: VPP’s, CESUR and the management of TSO guarantees.
The corporate governance structure of OMIClear is relevant to expedite the purpose and goals of the company in a manner consistent with the activities undertaken.
In this context, since its incorporation, the company has adopted a model that comprises the best practices within CCPs. The model observes, on one hand, the criteria and legal and regulatory requirements applicable to the market and systems management companies and, on the other hand, takes into consideration the key specificities that derive from OMIClear’s position within the OMI Group, as provided in Article 4(2) of the International Agreement of Santiago, as amended by the Agreement of Braga.
In the near future OMIClear will seek, as it always has, to meet the needs of its members for which it will continue to expand the range of products it offers. In 2014 it is foreseen a common project with OMIE and with the Iberian Gas Hub, in which OMIClear will act as clearing house in the Iberian Gas Market.