The Bulgarian Stock Exchange (BSE) has informed the Financial Supervision Commission about the formation of a joint-stock company between Bulgarian Stock Exchange AD and Central Depository AD (CD) called Clear EX (“Clear Ex” AD). The new company is expected to provide services as a clearing house on the electricity and natural gas market.
The capital of the company is 100,000 BGN (one hundred thousand leva), distributed in 100,000 shares. The holdings in the capital of the company by CD AD and BSE are 60% and 40% respectively.
According to commercial participants, the capital of 100 thousand BGN is insufficient. Sometimes collaterals on single deals exceed tens of millions and company with such low capital cannot guarantee the security of the transactions. The clearing house carries the main default risk during trading and practically acts as a bank. The capital standards for clearing banks on European electricity exchanges are many times higher.
More information in English is available in the announcement published on BSE website: http://www.x3news.com/?x3id=137181&language=en
Source: Bulgarian Stock Exchange