SECMP0016 Consideration of Maximum Credit Value in Credit Cover Calculation

Proposer Jeremy Guard
Lead Analyst SEC Change
Date raised 03/06/2016
StageImplemented
Implementation date 01/04/2017
Latest update This Modification Proposal was implemented 1 April 2017

What is the issue?

This Modification Proposal seeks to make changes to the SEC Credit Cover Requirement calculation so that it takes into account the credit value specified by an independent credit assessor.

What is the solution?

The solution requires a Party’s Maximum Credit Value offered in a Credit Assessment report is considered when calculating a Party’s Unsecured Credit Limit. The proposed calculation introduces an Unsecured Credit Factor, in place of the current CCF, that is a proportion of a Party’s Maximum Credit Value. The Unsecured Credit Factor is determined by the Party’s Recognised Credit Rating or Credit Assessment Score.
This proposed calculation reduces the current Credit Support held by the DCC to approximately 30% of the total Value at Risk for SEC Parties.

Who is impacted?

Supplier Parties
Network Parties
Other SEC Parties
DCC

What SEC documents are affected?

Section A 'Definitions and Interpretation'
Section J 'Charges'
Section K 'Charging Methodology'

Modification documents

SECMP0016 - Working Group Meeting 1 - Final Minutes
16/02/2017
17 01 26 - SECMP0016 Authority Decision
26/01/2017
SECMP0016 - Final Modification Report Attachment D - Change Board Vote Outcome
22/12/2016
SECMP0016 - Final Modification Report Attachment C - Modification Report Consultation Responses
22/12/2016
SECMP0016 - Final Modification Report Attachment B - Working Group Consultation Responses
22/12/2016
SECMP0016 - Final Modification Report Attachment A - Legal Text
22/12/2016
SECMP0016 - Final Modification Report (Post CB vote)
22/12/2016
SECMP0016 - Final Modification Report Attachment B - Consultation Responses
15/12/2016
SECMP0016 - Final Modification Report Attachment A - Legal Text
15/12/2016
SECMP0016 - Final Modification Report
15/12/2016
SECMP0016 - Modification Report Attachment C - Modification Report Consultation Response Form
16/11/2016
SECMP0016 - Modification Report Attachment B - Working Group Consultation Responses
16/11/2016
SECMP0016 - Modification Response Attachment A - Legal Text
16/11/2016
SECMP0016 - Modification Report
16/11/2016
SECMP0016 - Impact Assessment
25/10/2016
SECMP0016 - Working Group Consultation
10/10/2016
SECMP0016 Attachment C - Working Group Consultation response form
06/10/2016
SECMP0016 Attachment B - Credit Cover data model v4
05/10/2016
SECMP0016 Attachment A - Draft legal text
05/10/2016
SECMP0016 - Initial Modification Report
17/06/2016
SECMP0016 - Modification Proposal Form
03/06/2016
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