CECA is a member of

Master Agreement for Financial Transactions (EMA)

The Financial Transaction Framework Agreement (CMOF) is a contractual agreement that is mainly used as a framework agreement for financial derivative transactions between Spanish counterparties.

Since the CMOF – as stated above – is a framework agreement, all the financial transactions agreed thereunder, through the corresponding confirmation document (chiefly financial derivatives), are deemed to be integrated into the scope of this framework agreement, and the provisions thereof apply to such transactions, without prejudice to the specific terms and conditions that may be contained in the transaction confirmations.

The CMOF is also a contractual clearing agreement. This means that, through this agreement, the parties agree to create a single legal obligation that covers all the transactions concluded thereunder and, by virtue of which, in the event of early maturity, the parties are solely entitled to demand the net balance of the result of the settlement of these transactions, calculated as established in the framework agreement.

The CMOF was founded to replicate other international framework agreements for contractual clearing in the Spanish domestic market. There are three versions of the CMOF: 1997, 2009 and 2013. The first version of the CMOF, from 1997, was drawn up by the Spanish Banking Association (AEB), although the 2009 and 2013 versions were drawn up jointly by the AEB and Ceca.

The CMOF, in all its versions, comprises the "body of the agreement", which includes the operative part thereof and which is supplemented by several annexes: (i) Annex I, the purpose of which is to amend this "contractual body", (ii) Annex II that contains the definitions of the terms used in the framework agreement, (iii) Annex III, relating to the guarantees that may be associated with the transactions subject to the framework agreement, (iv) Annex IV that is derived from the need to clear a large part of derivative transactions, and (v) Annex V, relating to the initial guarantee that may be applicable between certain counterparties.