The basic principles governing the Derivatives Market Model in Greece both in trading and clearing of transactions can be defined as follows:

• Operation and rules through Regulatory framework
• Order driven market (Continuous trading) with participation of Market Makers
• Anonymity of transactions
• "Price - Time" priority in orders execution
• Central counterparty in all transactions
• Cash settlement on member level
• Fully electronically trading and clearing
• Real time supervision of the Market and the Market Makers obligations

The participants in the Greek Derivatives Market both in the execution of transactions as to their clearing are the following:

1. Athens Exchange
2. ATHEXClear (Clearing House)
3. Investors
4. Derivatives market trading members
5. ATHEXClear members
6. Settlement banks
7. The Dematerialized Securities System (DSS)

 

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Athens Exchange

Athens Exchange (ATHEX) is the Derivatives Market in Greece where the transactions on derivatives products are executed. ATHEX defines the derivatives products to be traded as well as their characteristics and it establishes the trading regulations. ATHEX main goal is the organisation and support of the transactions in the derivatives market as well as the organisation of the electronic trading system's operation. Additionally, it manages the trading system on derivative products (part of OASIS) to which investors orders are executed. ?

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ATHEXClear (Clearing House)

The clearing house of the Derivatives Market which has the role of the central counterparty is the company with the name ATHEXClear. ATHEXClear conducts the clearing as counterparty in each trade on derivatives products which is realized in the ATHEX derivatives market. In other words, ATHEXClear is the buyer against the seller of a contract and the seller against the buyer.

It is responsible for the calculation of the obligations and the claims, of each clearing member, which have to be settled on a daily basis as a result of its trades in the derivatives market. Additionally, ATHEXClear defines the margins that are required from each clearing account, according to its position in the derivatives market.

In general, the aim of ATHEXClear is to assure the fulfilment of the obligations deriving from the transactions realized in the derivatives market. ?

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Investors

Investors are considered all the physical or legal entities that can have an account and conduct trades on derivatives. The ATHEX Market Makers are also considered as these.

Each investor in order to execute transactions in the derivatives market must:

• Maintain an investor share and a securities account in DSS
• Have assigned an ATHEX member to access the market
• Have assigned an ATEXClear member (which can be an ATHEX member as well) for the transactions' clearing process. ?

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Derivatives market trading members

For the execution of transactions in the derivatives market the acquisition of membership by ATHEX is required. Membership gives the right of accessing the OASIS system for order entry, either on behalf of clients (investors) or for member's own account, through special terminals provided by ATHEX. ?

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ATHEXClear members

ATHEXClear members are responsible for the clearing of the transactions. They manage own and client clearing accounts, as well as their clients' derivatives positions accounts and clients' securities accounts in the Dematerialized Securities System. With the acquisition of the ATHEXClear membership, the right for accessing the clearing systems is given in order the members to receive all the necessary information for the clearing process, through special terminals (DSS) that ATHEXClear provides. ?

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Settlement banks

The daily cash settlement in Euro is conducted through Target 2 system. Any bank having acess to Target 2 can operate as settlement bank after having an aggrement with ATHEXClear.

Every clearing member has to assign a settlement bank in order to participate to the dailly cash settlement procedure, and to provide guarantees in form of cash to ATHEXClear. ?

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The Dematerialized Securities System (DSS)

In the Dematerialized Securities System all HELEX securities and derivatives market investors' accounts are held which are necessary for the conducting of the daily settlement of securities and the deposit of guarantees in form of  stocks or bonds. ?