Segregated client

Segregated client is the client of the Clearing Member, which is registered as the Segregated client and has the right to move to the other Clearing Member

  • Separate
    Settlement Account

     
    Separate Settlement Account is fixed to the Segregated Client. Only Segregated Client can execute trades with such Settlement Account
  • Cash funds
    protection

     
    Cash funds of the Segregated Client can be withdrawn only to the account, which belongs to the Segregated Client
  • Transfer to the other Clearing Member

     
    Segregated Client can forward to NCC application himself and move to the other Clearing Member (in cases defined in the Clearing Rules).
  • Consent of the Clearing Member is not needed

     
    Consent of the Principal Clearing Member upon transfer to the other Clearing Member is not obligatory

Such procedure enforces protection of non-defaulting clearing members from risks, connected with the default of the Clearing Member. Segregated Client is transferred with his own collateral and open positions

Individual person or legal entity, non-resident inclusively, can become a Segregated Client

Principal Clearing Member is the Clearing Member that registered Segregated Client. Segregated Client can use Portability procedure and move from the Principal Clearing Member to the Receiving Clearing Member

Principal Clearing Member opens Settlement Account (several accounts) for the Segregated Client in advance. Additionally, such Clearing Member registers relevant TA (several TAs) on the Securities market

Principal Clearing Member forwards to the Clearing House Request for the Segregated Client registration

Clearing Member is responsible for the authenticity of information on the Segregated Client
Submission of the Request for the Segregated Client registration is unconditional consent of the Principal Clearing Member upon transfer by NCC to the Receiving Clearing Member of Collateral, and also consent upon disclosure to the Receiving Clearing Member of the information on the size of Collateral and obligations of the Segregated Client in accordance with the Clearing Rules
Clearing Member is not entitled to indicate the Settlement Account, opened for the Segregated Client and registered as the part of the Trade Account for the Segregated Client, when registering other Trade Accounts

Following Segregated Client registration:

Execution of trades with the indication of TA, fixed to the Segregated Client, is possible only with the indication of the client code, corresponding to the Segregated Client

Return of funds according to the details is possible only when beneficiary is the Segregated Client himself or the Clearing Member

Segregated Client can use transfer of obligations and Collateral in cases, stipulated in the Clearing Rules. In order to use such procedure Segregated client forwards to NCC himself the Application for obligations and Collateral transfer

If the term regarding protection of cash funds of the Segregated Client is set then additionally:

Return of funds according to the details is possible only when beneficiary is the Segegated Client himself

Transfer of funds is possible only between Settlement Accounts, fixed to such Segregated Client

NCC notifies Segregated Client on the fact of his registration according to the details, defined in the request. In the similar way if the client stops being segregated one due to execution of the Request for annulment of the Segregated Client registration, NCC notifies such client on this fact according to the details, defined in the request

Segregated Client can use its right to move to the other Clearing Member. In order use this right, Segregated Client shall forward to NCC Application for obligations and Collateral transfer himself

In this application Segregated Client must define the following:

Segregated Client name

Full name of the Principal Clearing Member and of the Receiving Clearing Member

List of markets, on which Segregated Client is registered

Grounds for obligations and collateral transfer. All possible grounds are listed in the Clearing Rules

Clearing House does not check authenticity of grounds for obligations and Collateral transfer, defined by the Segregated Client in the Application. Meanwhile the Clearing House is entitled to refuse to execute Application for obligations and Collateral transfer if there is information on absence of grounds defined in the Application

Attention: for effective processing of the Application for obligations transfer we recommend submit such application via NCC EDI or via S.W.I.F.T. Any legal entity, RF non-resident inclusively, can connect to NCC EDI. If Application is provided in paper form, set of documents, which approve powers of the person, who has signed the Application, shall be provded.

Submission of the Request for the Segregated Client registration is unconditional consent of the Segregated Client upon disclosure to the Receiving Clearing Member of the information on the size of Collateral and obligations of the Segregated Client according to the Clearing Rules

If as the ground for transfer is the consent of the Principal Clearing Member then the Principal Clearing Member shall provide the Instruction to transfer obligations and Collateral of the Segregated Client. The abovementioned Instruction is porivded in paper or via EDI

After the moment when the Application for obligations and collateral transfer from the Segregated Client has been checked and accepted for processing, procedure for obligations and collateral transfer starts:

  • Application for transfer

     
    Segregated Client forwards to NCC Application for obligations and collateral transfer
  • Request to the Receiving Clearing Member

     
    NCC forwards to the Receiving Clearing Member information on Segregated Client and its positions
  • Consent upon acceptance

     
    Receiving Clearing Member forwards to NCC consent upon acceptance
  • Transfer of obligations and collateral

     
    NCC transfers obligations and collateral of the Segregated Client

1. Clearing House notifies Segregated Client and Principal Clearing Member on the beginning of the transfer procedure

2. Clearing House sets prohibition on return of funds from Settlement Account of the Segregated Client, Moscow Exchange sets prohibition on orders submission and execution of trades with the indication of the Settlement Account of the Segregated Client

3. Clearing House forwards to the Receiving Clearing Membeer via EDI information on the Segregated Client, size of obligation and collateral under Settlement Accounts of the Segregated Clients

4. Receiving Clearing Member forwards to the Clearing House via EDI Consent upon acceptance of the Principal Clearing Member's obligations under settlement accounts of the Segregated Client

5. Receiving Clearing Member can register accepted client as the Segregated Client or as ordinary client, without segregation. In the Consent upon acceptance the Receiving Clearing Member:

marks whether his new client will be Segregated one

can define particular Settlement Account and TA (several accounts), to which obligations and collateral shall be transferred

6. Clearing House peforms transfer of obligations and collateral of the Segregated client

7. Clearing House notifies Segregated Client and Principal Clearing Member on the end of the obligations and collateral transfer

Receiving Clearing Member can register Segregated Client on the Exchange in advance or after execution of the obligations and Collaterall transfer procedure
If there are obligations and collateral of the Segregated Client in precious metals, Receiving Clearing Member must have valid Agreement on trading banking account in precious metals, and also provide to NCC Application for opening trading banking account in precious metal
For execution of the procedure for obligations and Collateral Transfer, Receiving Clearing Member is charged according to the Tariffs of the Clearing House
Transfer of obligations and Collateral is not executed in case if there is no consent of the Receiving Clearing Member
Procedure for obligations and Collateral transfer can not take more than 2 days