GCC REPO
Key features
General Collateral Certificate (GCC):
- A new security type,
- Served as homogeneous universal collateral for CCP-cleared REPO transactions,
- Treated as individual clearing collateral; accepted as collateral for other transactions with the CCP (and also included in the Single Limit),
- Obtained through repo transactions or by posting assets to the pool.
GCC issue procedure
![](https://fs.moex.com/f/9904/icon29.png)
Participant
Securities worth RUB 100
![](https://fs.moex.com/f/9348/twoarrows.png)
90 GCCs, or assets estimate at RUB 90 (subject to a NCC discount)
![](https://fs.moex.com/f/9907/icon16-2.png)
GCC pool
![](https://fs.moex.com/f/9904/icon29.png)
Участник
90 GCCs, or assets estimate at RUB 90 (subject to a NCC discount)
![](https://fs.moex.com/f/9416/twoarrows-vertical.png)
Securities worth RUB 100
![](https://fs.moex.com/f/9907/icon16-2.png)
GCC pool
Example. A CCP-cleared REPO transaction in GCCs
(the 1st part)
![](https://fs.moex.com/f/9905/icon30.png)
Participant 1
RUB 90 under the REPO with the CCP
![](https://fs.moex.com/f/9348/twoarrows.png)
90 GCCs under the REPO with the CCP
![](https://fs.moex.com/f/9906/icon31.png)
Participant 2
![](https://fs.moex.com/f/9905/icon30.png)
Participant 1
90 GCCs under the REPO with the CCP
![](https://fs.moex.com/f/9416/twoarrows-vertical.png)
90 руб. по сделке РЕПО с ЦК
![](https://fs.moex.com/f/9906/icon31.png)
Participant 2
Benefits
- A collateral-giver remains the owner of assets posted to the pool, entitled to:
- Receive income
- Vote
- Effective collateral management in transactions with the CCP:
- Online substitution of collateral assets via the MOEX terminal
- An option for automatic selection of assets to the pool under rules established by the participant
- An option to settle CCP-cleared REPO transactions and T+ trades by using assets in the pool. Cash income received from such transactions goes to the pool
- The Money Market liquidity concentrates within one order book
- No corporate actions, accumulated coupon income and changes in the GCC value: easy transaction record-keeping and support
- Portfolio-based margining
- Net position exposures for different maturities
1-day repo wih the GCC
GCC pools
![](https://fs.moex.com/f/9886/icon15.png)
CLEARING MEMBER
Posts securities and cash to the pool trading account
![](https://fs.moex.com/f/9931/arrows-rt.png)
![](https://fs.moex.com/f/9887/icon16.png)
NCC creates the pool and issues GCCs
![](https://fs.moex.com/f/9931/arrows-rt.png)
![](https://fs.moex.com/f/9888/icon17.png)
POOL PARTICIPANT
![](https://fs.moex.com/f/9886/icon15.png)
CLEARING MEMBER
Posts securities and cash to the pool trading account
![](https://fs.moex.com/f/9932/arrows-dw.png)
![](https://fs.moex.com/f/9887/icon16.png)
NCC creates the pool and issues GCCs
![](https://fs.moex.com/f/9932/arrows-dw.png)
![](https://fs.moex.com/f/9888/icon17.png)
POOL PARTICIPANT
Securities acceptable to the pools | ISIN | |
---|---|---|
GCC Bonds | OFZ and Bonds accepted by NCC as collateral + cash funds: RUB, USD, EUR | RU000A0JW4Z1 |
GCC Expanded | All securities accepted in Repo with CCP + cash funds: RUB, USD, EUR Precious metals (gold, silver) |
RU000A0ZYP02 |
GCC Shares | Shares accepted by NCC as collateral + cash funds: RUB, USD, EUR | RU000A0WKG5 |
Admission to GCC REPO
Only members admitted to REPO with the CCP can trade GCC REPO.
There are two ways to enter:
1
To post assets to the pool
2
To execute GCC REPOs without posting assets to the pool
- Register at least one trading account attached to the pool, which is ties to the existing trading account by submitting the Pool Trading Account Registration Application.
- Submit the Supplementary Form to the Depo Account Agreement to National Settlement Depository (NSD).
The following documents need to be in place for using tagging and collateral selection functionality:- Collateral Management Agreement (NSD)
- Clearing Service Agreement (NSD)
—
- Tick the item "Qualified Investor" for every client registered with MOEX whose assets would be involved in GCC REPO trading.
GCC REPO characteristics
- GCC REPO with the CCP:
- Currency: RUB, USD, EUR, CNY
- No haircut
- The CCP is the party in the transaction; net settlement across REPOs with the CCP on a regular basis
- Maturity :
- Order book: 1 day; 1 week; 2 weeks; 1 months; 2 months; 3 months, 1 year
- Off order book: up to one year
- Daily revaluation of assets in the pool by the pool’s trading accounts, subject to NCC’s risk parameters.
- Collateral management by NSD
GCC clearing reports
Report code | Name | Comment |
---|---|---|
EQM06 | Extract from the transaction register accepted for clearing | Contains GCC REPO transactions |
EQM45 | Assets posted to the pools | Contains information on each trading account of the asset pool:
|
EQM99 | Collateral report | Contains information on GCCs issued/cancelled following the events described below (Operation Codes 22 and 23). The information is given by 36 sections of the T+ trading accounts:
|
EQM46 | GCC valuation for regulatory purposes | Contains the following information on each pool of assets:
|
Fees
- Fees for GCC REPO trading are similar to fees for REPO with the CCP,
- Fees for record-keeping of assets in the pool are similar to fees for the MOEX Equity & Bond Market (please refer to Clause 3, Section 2 Clearing Center Fees for All On-exchange Markets, Part 2 Tariffs, NCC Clearing Rules,
- A monthly fee for keeping GCCs is RUB 1,000 per securities account section in which a GCC was kept in the reporting month (please refer to Clause 2.1.4 of the NSD Fees for Depository Service).
Related materials
Testing
For any questions regarding GCC REPO testing, please contact out Technical Support Service:
Telephone: +7 (495) 733 9507
e-mail:
Videos
Contacts
Money Market Department team
Telephone +7 (495) 363-3232, ext. 5424, 5398, 5396, 5455
e-mail: repo@moex.com