Zero Hash operates the settlement systems associated with all trading on Seed Market and Seed SEF. Zero Hash performs, and offers, the following services:
As Calculation Agent, Zero Hash acts in a neutral manner to calculate adjustments, valuations and settlements that occur throughout the duration of a Transaction.
Whilst most Contracts on Seed Market and Seed SEF are physically-settled, Zero Hash does produce broad-based market indices for some financially-settled Products. These indices become the basis for obtaining settlement prices. For physically-settled contracts, a daily Settlement Price is also required in order to calculate Variation Margin.
On a daily basis, Zero Hash calculates all Variation Margin and Final Settlement obligations owed to, or by, a Participant.
All Variation Margin and Final Settlement obligations must settle by T+1. That is, on or before the business day after execution. Zero Hash tracks successful payment of all outstanding obligations. Products traded on Seed Market always settled into the physical commodity, whereas Seed SEF can offer both physically and financially-settled contracts.