CJSC JSCB National Clearing Centre has successfully completed the project aimed at increasing the collective Risk Covering Fund in the MICEX-RTS exchange-based currency market from 14.1 to 17.9 mln. US dollars.This project has been implemented in order to further increase the reliability of the Bank’s risk management system through strengthening of one of the most important elements of the risk management system, embodied by the said Fund.
The Fund's increase was ensured by growing the size of contribution of each member meeting the new capitalrequirements from 60 to 80 thousand US dollars. The minimum capital requirement applicable to the credit institutions being members of the Risk Covering Fund was increased in order to secure the Fund’s reliability via providing access to its formation to the most well-capitalized market participants.
According to Alexey Khavin, Chairman of the Board of NCC, "the increase of the size of contribution to the Fund and the larger required capital of its members constitute adequate and timely measures taken by NCC as central counterparty and risk taker at the exchange-based currency market in order to further improve the risk management system in the light of the rising requirements of the Bank of Russia as to the minimum capital of operating credit institutions.”
The Risk Covering Fund was formed from equal contributions of its members and designed to cover market (exchange rate) risks arising in connection with possible defaults of the Fund's members on their obligations under the transactions concluded at the UTS. The establishment objectives, formation and spending procedures of the Fund are governed by the Regulation on the Procedure for Formation, Placement and Use of Resources of the Risk Covering Fund set up by the Joint-Stock Commercial Bank “National Clearing Centre” (Closed Joint-Stock Company).
Information for editors:
CJSC JSCB National Clearing Centre, member of MICEX-RTS Group, was established in October 2005. NCC renders clearing services and performs central counterparty functions in the MICEX-RTS exchange-based currency and stock markets. The bank’s shareholder is OJSC MICEX-RTS (100%).
Since November 2009, NCC has been member of the European Association of Clearing Houses – Central Counterparties (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 February 2012, the bank’s equity equalled 10 bn. 313 mln. roubles, including the authorized capital of 6 bn. 170 mln. roubles.