As the way to secure the fulfillment of obligations, accepted for clearing, the NCC uses Collateral of Clearing Members, Collateral for Stress of Clearing Members, the Default Fund. The Default Fund (collective clearing collateral) is formed by the Default Fund contributions of all Clearing Members of the categories "O" and "B".

The procedure for the registration of a Clearing Member stipulates the assignment of the Identifier of a Clearing Member. If a Clearing member is a Market Participant, the Identifier of a Clearing Member coincides with the Registration Code of a Market Participant.

Clearing Member registers a Trade Account in the NCC using the Application for the Trade Account Registration, where he indicates the Settlement Account type (proprietary, client, trust management) which forms a part of the Trade Account.

Clearing Member in the Application for the Trade Account Registration also indicates the list of foreign currencies to record which the NCC registers Collateral Accounts.

Clearing Member may register Trade Account of the 2nd level for its client, working on the basis of the agency contract, Market Participant inclusively.

Clearing Member of the category "O" may act as a Clearing Broker for one or several Market Participants, which are not Clearing Members.

Market Participant, which concluded with the Clearing House the agreement on keeping clearing registers, stipulated by the Common part of the Clearing Rules, is entitled to register in the NCC a Trade Account of the 3rd level for its proprietary operations or for the operations of its clients.

Separating statuses of Clearing member and Market Participant.

The NCC executes internal recording on clearing registers in the Clearing System, stipulated by the Law on Clearing. The NCC records on clearing registers per Settlement Account:

• Single Limit;
• Obligations arising from Trades accepted for clearing;
• Set of Risk Management Instructions;
• Obligations of a Clearing Member and of the NCC to pay variation margin;
• Net Obligation / Net Claim with each Settlement Date in each currency and each precious metal;
• Total Net Obligation / Total Net Claim in each currency and in each precious metal;
• Collateral in each currency and each precious metal;
• Margin Call (if any).

The NCC records on clearing registers per Settlement Account of the 2nd level / Settlement Account of the 3rd level (in case if Market Participant provides the NCC with the Application on Trade Account of the 3rd level registration, per):

• Information on Collateral in each currency and each precious metal posted with the indication of the Settlement Account of the 2nd level / Settlement Account of the 3rd level;
• Information on Net obligations / Net claims with each Settlement Date in each currency and in each precious metal arising from Trades concluded under Trade Account of the 2nd level and/or Trade Account of the 3rd level / Trade Account of the 3rd level;
• Information on obligations to pay variation margin under Trades concluded under the Trade Account of the 2nd level and/or Trade Account of the 3rd level / Trade Account of the 3rd level;
• Information on termination of obligations arising from Trades concluded under Settlement Account of the 2nd level and/or Trade Account of the 3rd level / Trade Account of the 3rd level, including information on termination of obligations to pay variation margin under the defined Trades;
• Information on the Single Limit.

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Every day till 10:00 the NCC during the clearing session:

• sets risk parameters;
• defines Settlement Prices;
• calculates new values of Single Limits for Settlement Accounts of Clearing Members, Settlement Accounts of the 2nd level and (for Market Participants that concluded agreement on keeping clearing registers with the NCC) for Settlement Accounts of the 3rd level;
• defines obligations to pay variation margin;
• records termination of counter obligations arising from futures contracts and swap contracts;
• forwards Report on obligations under Derivatives;
• forwards to Clearing Members (if any) Claim to pay the Debt;
• forwards to Clearing Members (if any) Report on Margin Call.

Terms of termination of counter obligations arising from futures contracts and swap contracts

1. counter obligations; obligations in one underlying asset and one currency;
2. obligations in one underlying asset and one currency;
3. obligations with one Settlement Date;
4. obligations with the same lots;
5. obligations arising from futures and swap contracts, which are concluded on the basis of orders, in which the same client code is indicated (or client code in both orders is not indicated) and the same Trade Account of the 1st, 2nd or of the 3rd level is indicated;

Firstly, obligations under futures contracts and swap contracts with earlier date and time of conclusion (FIFO method) are terminated.

Information on termination of obligations recorded under Settlement Accounts of the 1st and of the 2nd level is provided to Clearing Member as a part of the Report on Derivatives obligations (CCX17). Market Participant also receives information on termination of obligations recorded under Settlement Accounts of the 2nd or of the 3rd level as the part of the Report on Derivatives obligations (CCX17).

If the Single Limit for the Settlement Account of a Clearing Member (SA of the 1st level) on the basis of the clearing session results becomes negative then emerges Margin Call, which member shall pay out on the day of emergence till 17:30.

In case of non-fulfillment of Margin Call under the Settlement Account, the NCC:

1. Notifies the Exchange on the necessity to suspend submission of orders from the Trade Account, into the structure of which such Settlement Account is included;
2. Is entitled to forward to the Exchange notification on the necessity to withdraw all or part of trades from the Trade Account, into the structure of which such Settlement Account is included;
3. Concludes with Clearing Member closing Trades in foreign currency / precious metals, which lead to the enlargement of the Single Limit for such Settlement Account. After conclusion of closing trades the NCC notifies the Exchange on derestriction on orders submission.

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Electronic documents interchange between Clearing Members and the NCC is executed via the EDI Sub-system of the NCC and/or via S.W.I.F.T. Information is published on the NCC’s website on the section "IT-services".

Forms and formats of documents provided by Clearing Members and/or by its clients are set out in the document "Forms and formats of documents provided by Clearing Members in accordance with the Clearing Rules on the FX market and precious metals market".

The NCC produces the following clearing reports to Clearing members and Market Participants, which signed the Agreement on keeping clearing registers:

Reports formats specification. Reports examples.

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