On 01 November 2011, CJSC JSCB National Clearing Centre (hereinafter NCC) started performing the functions of a clearing organization in the MICEX securities market using the central counterparty arrangement.
From now on, NCC, along with providing clearing services in the exchange-based FX market, acts as a central counterparty (CCP) in all securities purchase and sale transactions in the MICEX securities market with 100% pre-posted collateral and T+0 settlements, including the transactions settled in foreign currency.
As a result of extending the central counterparty function to the securities market, a basis was formed for further implementation of the trading technology with partial pre-posted collateral and T+n settlements, and for the formation of a REPO market with CCP function. Further to the foregoing, an opportunity was created for the subsequent consolidation of the clearing function at the FX, stock and forward markets of MICEX Group within one organization, with opening of a single position for all markets.
“The transfer of the securities market clearing function from MICEX Stock Exchange to CJSC JSCB National Clearing Centre signifies the first step towards strengthening of the market stability and better security of the use of the participants’ funds, because this financial market segment is covered by the risk management system being implemented by NCC as a central counterparty. This system has been assessed by the European Association of Central Counterparty Clearing Houses (EACH) as consistent with the international standards”, stated Mr. Alexey Khavin, Chairman of the NCC Management Board. He went on to say, that “the combination of two approaches, namely - further improvement of the risk management system and creation of conditions for the efficient use of own funds by the participants – will be the main guideline for NCC in its further efforts to develop clearing services in the MICEX Group markets.”
Information for editors:
CJSC JSCB National Clearing Centre, member of MICEX Group, was established in October 2005. Since 10 December 2007, NCC has been rendering clearing services as a central counterparty in the MICEX currency exchange market. The bank’s shareholder is CJSC MICEX (100%).
Since November 2009, NCC has been a member of the European Association of Central Counterparty Clearing Houses (EACH), and since September 2011 – member of the Global Association of Central Counterparties – CCP12. NCC holds a license of the Bank of Russia for banking operations with rouble and foreign currency funds, and a license of professional securities market participant, issued by the Federal Service for Financial Markets (FSFR). As of 01 October 2011, the bank’s equity equalled 9 bn 530 mln roubles, including the authorized capital of 4 bn 435 mln roubles.