CM categories

CM categories:

Category "О" Clearing Member - General Clearing Member (Clearing Broker inclusively), is admitted to the clearing of partially secured trades

Category "B" Clearing Member - Individual Clearing Member, is admitted to the clearing of partially secured trades

Category "C" Clearing Member - Individual Clearing Member, is not admitted to the clearing of partially secured trades


Requirements in respect of Category "C" Clearing Members:

Clearing membership agreement in force

agreement on integrated technical service provision, concluded with the Technical Centre, in force

to be a participant of the EDI System of the Moscow Exchange

to meet NCC requirements regarding information and reporting provision, stipulated by the Clearing Rules

valid banking license issued by the Bank of Russia

valid license, issued by the Bank of Russia, on performing the particular type(s) of activity by non-credit financial institutions

valid broker license and/or dealer license and/or trust management license (for Clearing Members – Non-credit Institutions that are Professional securities market participants)

information on such entities shall be included by the Bank of Russia in the state register of microfinance market participants

valid special permission (a license or other basement), issued by a competent authority of the state of establishment of a Non-resident Bank, on the basis of which a Non-resident Bank is entitled to execute banking operations, stipulated by a personal law

valid special permission on performing operations on financial markets, issued by a competent authority of the state of establishment of a Clearing Member, or own assets (capital) not less than 500 000 000 (five hundred million) Russian rubles

Requirements in respect of Category "B" Clearing Members:

in addition to requirements, set in respect of Clearing Members of the category "C":

contribution to the Default Fund of the relevant market in the amount defined for each market

there shall be no facts showing decline in the financial statement and/or there shall be no information that gives reasons to consider decline in the financial statement of a Clearing Members possible and/or inability of a Clearing Member to fulfil its obligations under Partially Secured Trades, to pay Margin Calls and/or other obligations of a Clearing Member, arising from the Clearing Rules (this requirement does not refer to national (central) banks of EurAsEC/EAEC member states)

a Clearing Member should have financial statements in accordance with the current core economic activity accounting and reporting requirements for the last five quarterly reporting dates, or

in case of reorganization (except transformation) a newly established legal entity should have and provide upon the request of the Clearing Centre available quarterly reporting forms of this newly established legal entity and quarterly reporting forms of a predecessor for the last five reporting dates, or

50 percent or more of an entity’s outstanding shares (stakes) directly owned by another Clearing member that has:

- international long-term credit rating in respect of obligations in Russian rubles or in foreign currency not lower than BBB- according to the rating agencies "Standard & Poor's" or "Fitch Ratings" or Baa3 according to the rating agency "Moody's Investors Service", or

- national credit rating not lower than АAA according to the Analytical Credit Rating Agency (АCRА) or the rating agency "Expert RA".

no grounds for bankruptcy-prevention measures under the laws of the Russian Federation on insolvency (bankruptcy) or under the domicile law of the Clearing Member

the Clearing Members - Credit Institutions shall comply with mandatory indicators and requirements for the minimum amount of equity (capital) set by the Bank of Russia / established by the competent authority of the state of establishment if, in accordance with the national legislation of the state of establishment of the Clearing Member, such mandatory indicators / requirements are established

no grounds for revocation by the Bank of Russia of the banking license under the banking legislation, no grounds for withdrawal in accordance with the national law of the country of registration of the Non-Resident Bank of a special permit (license or other document) issued by the competent authority of the country of registration of the Non-Resident Bank, where under the Non-Resident Bank is entitled to conduct banking operations

Requirements in respect of Category "O" Clearing Members

in addition to requirements, set in respect of Clearing Members of the categories "B" and "C":

proprietary funds not less than 50 000 000 000 (fifty billions) Russian rubles,

or

proprietary funds not less than 20 000 000 000 (twenty billions) Russian rubles and

- international long-term credit rating in respect of obligations in Russian rubles or in foreign currency not lower than BB+ according to the rating agencies "Standard & Poor's" or "Fitch Ratings" or "Ba1" according to the rating agency "Moody's Investors Service", or

- national credit rating not lower than А- according to the Analytical Credit Rating Agency (АCRА) or the rating agency "Expert RA",

or

proprietary funds (equity) not less than 20 000 000 000 (twenty billions) Russian rubles under condition that an organization that is entitled
      directly or indirectly supervise the activity of a Clearing Member, has:

- international long-term credit rating in respect of obligations in Russian rubles or in foreign currency not lower than BB+ according to the rating agencies "Standard & Poor's" or "Fitch Ratings" or "Ba1" according to the rating agency "Moody's Investors Service", or

- national credit rating not lower than А- according to the Analytical Credit Rating Agency (АCRА) or the rating agency "Expert RA".

valid license issued by the Bank of Russia on executing banking operations with funds in Russian rubles and foreign currencies and/or a license
      on performing clearing activity (for Clearing Members - Residents).

valid special permission (license or other basement), issued by a competent authority of the state of establishment of a Clearing Member

Special requirement in respect of Clearing Members.

Residence

Organization
type

Organization
category

Category "C" Category "B" Category "O"

Securities,
Deposit and
Credit Market

FX and
Precious
Metals
Market

Securities,
Deposit and
Credit Market

FX and
Precious
Metals
Market

Derivatives
Market

Standardized OTC
Derivatives
markets

Commodities
Market

Securities, Deposit
and Credit Market

FX and
Precious
Metals
Market

Derivatives
Market

Residents Credit Institutions Banks and non-bank financial institutions             In the absence of financial market trading license Equity ≥ 1 bn RUB

Equity ≥ 50 bn RUB

or

- Equity ≥ 20 bn RUB and

- External rating:

S&P / Fitch ≥ BB+ or

Moody's ≥ Ba1 or

АCRА/ Expert RA ≥ A-*

Non-credit Institutions Professional securities market participants           Equity ≥ 0,3 bn RUB
Non-credit Institutions Investment fund managers       Not admitted    
Non-credit Institutions Insurance companies          

Equity ≥ 10 bn RUB
and

External rating:

S&P / Fitch ≥ BB- or

Moody's ≥ Ba3 or

АCRА/ Expert RA ≥ A-

Non-credit Institutions NPF       Not admitted    
Regional authorities      

External rating:

S&P / Fitch ≥ BB+ or

Moody's ≥ Ba1 or

АCRА/ Expert RA ≥ A-

       
Corporations  

Equity ≥ 500 mln RUB

or

Clearing Member shall provide an irrevocable and unconditional guarantee issued by an entity that has External rating:

S&P / Fitch ≥ BB- or

Moody's ≥ Ba3 or

АCRА/ Expert RA ≥ A-

Equity ≥ 500 mln RUB Equity ≥ 10 bn RUB

Equity ≥ 50 bn RUB

or

- Equity ≥ 20 bn RUB and

- External rating:

S&P / Fitch ≥ BB- or

Moody's ≥ Ba3 or

АCRА/ Expert RA ≥ A-*

 

Equity ≥ 10 bn RUB

or

- Equity ≥ 20 bn RUB and

- External rating:

S&P / Fitch ≥ BB- or

Moody's ≥ Ba3 or

АCRА/ Expert RA ≥ A-*

 

Clearing member has at least 2 (two) employees, all of which correspond to the requirements, stipulated in paragraph 4.6.3 of the Clearing Rules

Equity ≥ 0,1 bn RUB
and

Clearing Member shall provide a letter from an organization that is entitled directly or indirectly supervise the activity of a Clearing Member has Equity ≥ 1 bn RUB

Non-residents Banks      

Equity ≥ 10 bn RUB

or

- Equity ≥ 5 bn RUB and

- External rating:

S&P / Fitch ≥ BB- or Moody's ≥ Ba3

   

Equity ≥ 0,3 bn RUB

and

External rating:

S&P / Fitch ≥ BB- or

Moody's ≥ Ba3 or

АCRА/ Expert RA ≥ A-*

 
Financial companies            

Equity ≥ 0,3 bn RUB

and

External rating:

S&P / Fitch ≥ BB- or

Moody's ≥ Ba3 or

АCRА/ Expert RA ≥ A-*

 
Corporations  

Equity ≥ 500 mln RUB

or

Clearing Member shall provide an irrevocable and unconditional guarantee issued by an entity that has External rating:

S&P / Fitch ≥ BB- or

Moody's ≥ Ba3 or

АCRА/ Expert RA ≥ A-

Equity ≥ 500 mln  RUB

Non EurAsEC/EAEC Clearing Member:

Equity ≥ 10 bn RUB

 

EurAsEC/EAEC Clearing Member:

Equity ≥ 50 bn RUB

or

- Equity ≥ 10 bn RUB and

- External rating:

S&P / Fitch ≥ BB- or Moody's ≥ Ba3

or

- Equity ≥ 20 bn RUB and

- direct state ownership - more than 50%

Equity ≥ 50 bn RUB

or

- Equity ≥ 20 bn RUB and

- External rating:

S&P / Fitch ≥ BB- or

Moody's ≥ Ba3 or

АCRА/ Expert RA ≥ A-*

     
* Clearing Member or an organization that is entitled directly or indirectly supervise the activity of a Clearing Member

 

Category assignment and change

Clearing Member, which is not admitted to the clearing service on the relevant market, shall submit the Application for the clearing service provision in order to receive admission.

Clearing Member, which is admitted to the clearing service on the relevant market, shall submit the Application for the category change in order to change category. NCC executes such Application if the following requirements are met:

there is no Margin Calls through all Settlement Accounts;

there is no unpaid Debts through all Settlement Accounts.

NCC changes category if the abovementioned requirements are met and also if there is no non-fulfilled obligations under Trades, executed by the Market Participant with the indication of the relevant Clearing Member of the category "O" as the clearing broker.

NCC is entitled to change category of the Clearing Member from "C" to "B" without application if the Clearing Member meets the abovementione requirements, set for the Clearing Member of the category "B".

NCC is entitled not to admit the Clearing Member to the clearing service on the relevant market(s):
- in the absence of positive financial result or positive retained earnings as of the last reporting date;
- provided the Clearing Members does not comply with the financial stability requirements;
- in the case of reputation risk that can arise from clearing service provision to the Clearing Member.