National Clearing Center operates as a clearing organization and a CCP in all exchange markets of the MOEX group, excluding specific trading modes without centralized clearing (clearing is nor performed due to technical reasons). NCC is authorized to perform the above-mentioned functions by the Clearing License.
The list of operations performed by NCC is defined in the NCC Charter taking into account the restrictions stipulated in the Federal Law dated 7 February 2011 № 7-ФЗ 'On Clearing and Clearing Activity', as well as the Bank of Russia requirements to CCPs listed in the Statement dated 3 December 2012 №2919-У 'On the Management Quality at a Credit Organization Operating as a CCP' and other regulations of the Russian Federation.
Systemic risks reduction is the main target of the CCP, this function entails strict requirements to the Risk Management system.
NCC operates as a CCP in the MOEX markets listed below:
- EQ and Money Market
- FX and Precious Metals Market
- Derivatives Market
- Standardized Derivatives Market
To support the required confidence level CCP risk management system is comprised of the safeguard structure and default-management procedure that allows the CCP to fulfill its obligations in case of one or several CMs' defaults.
CCP Safeguard Structure
The components of the safeguard structure are the following:
- Initial margin requirements
- Defauleter's Guarantee Fund contribution;
- Dedicated CCP capital
- Guarantee Fund
- Remaining CCP capital (conditions may apply)