Collateral

To cover your obligations you may use the following collateral:

• Cash (NOK) on a Collateral and Settlement Account in your Settlement Bank, or at your Client Collateral and Settlement Account with NOS.

The seafood market is quoted and settled in NOK and the member has to cover the settlements with cash on a Collateral and Settlement Account. The cash held on this account can be used to cover the margin requirements and base collateral requirement in addition to the settlements. The cash deposit is pledged to NOS. The accounts are regulated by the appendix 3 to the Rulebook.

Interest paid on the Collateral and Settlement Account by the Settlement Bank is negotiated by the member. Interest paid on a client account by NOS is found here.
 

 • Stand by Letter of Credit.

The members may use a Stand by Letter of Credit (LOC) in NOK to cover the margin requirements and Base Collateral requirement. The Letter of Credit has to be on the NOS standard wording as per the appendix 4 to the Rulebook. The LOC can not be used to cover negative settlements.

Excessive Collateral

The member may with draw the excessive collateral posted as cash by sending NOS a cash release form signed by an authorized signature. The excessive cash collateral is shown on the Daily Summary Report as well as in the Clearing Online Application. When a Settlement Bank is chosen, the withdrawals may by organised through the bank.