Status of the Collateral in foreign currency
In accordance with the Russian Federation legislation and the Clearing Rules a status of the Collateral in foreign currency is determined by the accounts, designed for posting collateral:
- Collateral in FX, which is called as ‘individual clearing collateral’ (ICC), is posted to the NCC clearing banking accounts, opened with NSD.
- In such case according to the Central Bank of Russia Accounting Regulations NCC opens in its internal recording system the balance accounts №30420 for a Clearing Member in order to record ICC.
- Collateral in FX, which is called as ‘other collateral’ is posted to the correspondent accounts of the NCC, opened with foreign correspondent banks.
- In such case according to the Central Bank of Russia Accounting Regulations NCC opens in its internal recording system the balance accounts №47405 for a Clearing Member in order to record the other collateral.
By default, Clearing Members of the Derivatives market post Collateral in USD and EUR onto the NCC accounts with NSD but for more Clearing Members’ convenience, the NCC correspondent accounts with foreign settlement banks also could be used.
In order to get this opportunity a Clearing Member is obliged to provide the NCC with the Application for changing the status of collateral in FX on the Derivatives market. Basing on this, NCC opens for Clearing Member the balance accounts 47405 instead of 30420, transfers Clearing Member’s funds in FX from 30420 accounts to 47405. And finally closes 30420 accounts.
Please pay attention:
after the abovementioned application has been provided to the NCC, a Clearing Member (and/or its clients) is to post Collateral in USD and EUR onto the relevant NCC correspondent accounts with foreign settlement banks and shall not use NCC accounts with NSD for these purposes.
changing status of Collateral is executed automatically and simultaneously through all Settlement Accounts of a Clearing Member on the Derivatives Market, including proprietary, client and trust accounts.
change of the Collateral status in reverse from the ‘other collateral’ to the ICC is impossible.