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Effecting Gas Oil Futures Contracts Delivery

№	Time	Action
1	before T (inclusive)	Opening a settlement account in the NCO "RTS Settlement Chamber" LLC for clearing operations on delivery for a delivery participant. Connecting a delivery participant to the RTS EDC system. Signing by the delivery participant the Delivery Agreement under the contract. The type of the agreement depends on the delivery participant status: If a clearing member is a delivery participant Agreement If a clearing member client is a delivery participant Agreement Presenting by the delivery participant to the CJSC "RTS Clearing Center" the required documents to confirm the possibility of the fulfillment of the obligations under the delivery contract: confirmation of the registration card availability at the "Volodarskaya" LPDS OJSC "Mostransnefteproduct" (Appendix №1 to the Delivery Agreement); letter of authority for getting information on the current state of an account and the flow of funds on the registration card at "Volodarskaya" LPDS OJSV "Mostransnefteproduct" (Appendix №2 to the Delivery Agreement); letter of authority for getting information on opened letters of credit from the NCO "RTS Settlement Chamber" and presenting to the NCO "RTS Settlement Chamber" LLC an account registration to open the letters of credit for fulfilling delivery obligations (Appendix №3 to the Delivery Agreement). Settlement account opening notification copy issued by the NCO "RTS Settlement Chamber" LLC.
2	Т+1	The CJSC "RTS Clearing Center" evaluates the possibility of fulfilling delivery obligations by the delivery participant who has open interests under the contract by checking the documents availability and actions as per Clause 1. The delivery participant should meet the indicated requirements during the whole delivery period. The contract positions of the delivery participant are cancelled if at least one of those requirements is not met. In this case the delivery participant whose positions were cancelled is considered the party who failed to fulfill his obligations under the contract.
3	Т+1	The CJSC "RTS Clearing Center" checks the number of open interests under the contract registered in the delivery participant position registration book. In case the number of the positions exceeds the limit specified by the stock exchange, those positions exceeding this limit are cancelled. In this case the delivery participant whose positions were cancelled is considered the party who failed to meet his obligations under the contract.
4	Т+1	Positions reverse to those which were cancelled are also subject to cancellation as per Clause 2, 3. However, the delivery participants whose positions were cancelled under the indicated circumstances are considered nonbreaching parties to a contract.
5	Т+1	The CJSC "RTS Clearing Center" makes reports for delivery participants specifying delivery counterparties, obligations and document identification numbers.
6	before 16-00 Т+3	Delivery parties have the right to cease their delivery obligations presenting to the CJSC "RTS Clearing Center" a Settlement Act (Appendix №2 to the contract specification) through EDC. After receiving the Acts from both parties the CJSC "RTS Clearing Center" cancels the Seller’s and the Buyer’s positions to the extent indicated in the Act.
7	before Т+3 (inclusive)	Delivery participants - counterparties conclude a Delivery Agreement (Appendix №1 to the contract specification) with the identification number indicated by the CJSC "RTS Clearing Center". The initiator of a Delivery Agreement is the delivery participant – the Buyer who directs the Delivery Agreement (an offer) signed by him to the Seller. After signing the Delivery Agreement from his part the delivery participant – the Seller sends it back to the delivery participant – the Buyer (acceptance).
8	before 16-00 Т+3	The delivery participant – the Buyer opens in the NCO "RTS Settlement Camber" LLC a covered irrevocable letter of credit which is to be opened in favour of the counterparty upon the requisites indicated in the CJSC "RTS Clearing Center" report to the extent necessary for fulfilling delivery obligations. Letter of credit opening
9	16-00 Т+3	The CJSC "RTS Clearing Center" receives from the NCO "RTS Settlement Chamber" LLC the information upon the opened letters of credit.
10	after 16-00 Т+3	In case of the absence of an opened letter of credit or lack of money out of the LC for the fulfillment of the delivery obligations, the Buyer is considered the party failed to fulfill the obligations under the contract and the Seller – the nonbreaching party. In this case the Seller’s and the Buyer’s positions are cancelled.
11	after 16-00 Т+3	If there is an opened letter of credit available and there is enough money for the fulfillment of the delivery obligations, the CJSC "RTS Clearing Center" sends the delivery participants – counterparties a Delivery/Acceptance Protocol (Appendix №3 to the contract specification) through EDC.
12	before 16-00 Т+4	The delivery participants – counterparties effect delivery/acceptance of the underlying asset to the extent indicated by the CJSC "RTS Clearing Center" in the Delivery/Acceptance Protocol through handing in order letters to the "Voodarskaya" LPDS OJSC "Mostransnefteproduct" upon the delivery/acceptance of the underlying asset from the Seller’s registration card to the Buyer’ one. The indicated order letters should have identification numbers indicated in the CJSC "RTS Clearing Center" report.
13	before 18-00 Т+5	The delivery participants – counterparties get at the "Volodarskaya" LPDS a statement confirming the underlying asset delivery and present to the Clearing House a Delivery/Acceptance Protocol with the CJSC "RTS Clearing Center" EDC identification number. The underlying asset volume indicated in the Protocol should be identical to that one indicated in the order letters.
14	18-00 Т+5	After receiving from the delivery participants – counterparties the signed Delivery/Acceptance Protocol the CJSC "RTS Clearing Center" hands over to the NCO "RTS Settlement Chamber" LLC the information for opening the corresponding letter of credit. The letter of credit is to be opened for the full value of the underlying asset indicated in the Protocol; the price is to be the settlement price of the final day of concluding the contract.
15	18-00 Т+5	After handing over to the NCO "RTS Settlement Chamber" LLC the information upon opening the letter of credit the CJSC "RTS Clearing Center" cancel the delivery participants’ – counterparties’ positions.
16	from Т+6 to Т+10	The CJSC "RTS Clearing Center" makes an investigation in order to define the delivery participant who failed to fulfill its obligations in the following cases: In case if at least one of the counterparties to the contract has no signed Delivery/Acceptance Protocol; In case if the underlying asset volume indicated in the Delivery/Acceptance Protocol presented to the CJSC "RTS Clearing Center" by the delivery participants – counterparties is inferior to the underlying asset volume indicated in the Delivery/Acceptance Protocol presented by the CJSC "RTS Clearing Center" to the delivery participants – counterparties; In case of difference in the underlying asset volumes indicated in the Delivery/Acceptance Protocol by the delivery participant - the Buyer and the delivery participant– the Seller.
17	from Т+6 to Т+9	The CJSC "RTS Clearing Center" requests, the delivery members – counterparties release documents confirming the fulfillment of their delivery obligations, i.e.: Delivery Agreement; Order letters to the "Volodarskaya" LPDS OJSC "Mostransnefteproduct" on the delivery/acceptance of the underlying asset; Statement of account confirming the operation in the registration cards of the delivery participants – counterparties to the contract; The CJSC "RTS Clearing Center" has the right to claim from a delivery participant the documents confirming the delivery/acceptance of the underlying asset from the "Volodarskaya" LPDS OJSC "Mostransnefteproduct".
18	Not later than Т+10	The CJSC "RTS Clearing Center" decides if the delivery participants have fulfilled their delivery obligations or not and if to consider them the parties failed to fulfill the obligations under the contract or to consider them nonbreaching parties.
19	Т+10	After taking the decision indicated in Clause 18 the CJSC "RTS Clearing Center" cancels the delivery participants’ – counterparties’ positions.
20	Т+10	The CJSC "RTS Clearing Center" charges the penalty to the extent of the initial margin fixed on the final day of concluding the contract from the party failed to fulfill its obligations under the contract and credit this sum to the nonbreaching party’s account.

T – the final day of concluding the contract