The Moscow Exchange Group established the central Clearing House
The Moscow Exchange Group completed establishing the unified Clearing House with CJSC JSCB National Clearing Centre (NCC) being a foundation for the structure. The NCC which is the Group's subsidiary will take over clearing for the FORTS Derivatives market and the MICEX Stock Exchange Standard market sector (including clearing of buy-sell transactions and repo trades) and clearing for the Moscow Energy Exchange Derivatives Market and the Saint-Petersburg Exchange Derivatives Market from the RTS Clearing Center.
As a result, from December 03, 2012 the NCC acts as the CCP for all trades in derivatives contracts negotiated at the Moscow Exchange, the Moscow Energy Exchange and the Saint-Petersburg Exchange. At the same time, the RTS Clearing Center ceased the clearing service for the Derivatives Market and the Standard market sector and closed RTS Money conversion operations in foreign currency.
Transferring clearing from the RTS Clearing Center to the NCC does not cause any changes in the total amount of clearing fees. The clearing schedule and the reliable risk management system applied on the markets remain unchanged. Trading Participants and the NCC will settle cash and securities obligations using the services of the National Settlement Depository.
"The establishment of the united Clearing House with the NCC performing central clearing is a landmark not only for the Moscow Exchange Group, but also for the entire Russian financial market. From now on this reliable large cap bank effectively led by the Bank of Russia will provide the Exchange's clients with clearing and CCP services in all market sectors. This is the next step forward which will allow to bring the Russian financial market infrastructure in compliance with the advanced international standards", said Aleksey Khavin, Chairman of the NCC Board of Directors.
Andrey Shemetov, Deputy Chairman of the Moscow Exchange Managing Board, believes that this logical step will lead the Moscow Exchange to considerable progress and originates from the merger of the MICEX and the RTS. "I am sure the transfer of clearing to the NCC will give a new impulse to the Russian market development, due to the rise in the trading activity of non-resident participants that could increase clearing limits inter alia", — отмечает Андрей Шеметов.
For reference
CJSC JSCB National Clearing Centre (NCC) which is a subsidiary of MICEX-RTS Group was founded in October, 2005. The NCC performs functions of a clearing organization and central counterparty on the Moscow Exchange FX and Securities markets. OJSC "Moscow Exchange MICEX-RTS" is the Bank's Shareholder (100%).
Since 2009, The NCC has been the member of the European Association of Central Counterparty Clearing Houses (EACH) since 2009 and the member of the Global Association of Central Counterparties (CCP12) since 2011.
The NCC is licensed by the Bank of Russia to perform banking operations with financial assets denominated in rubles and foreign currencies. The NCC has the FFMS Certificate of a professional Russian securities market participant that authorizes its clearing service. The Bank's net worth is over RUB12 billion including the Authorized capital of RUB6.170 billion (as of November 01, 2012).
For further information, please contact the Public Relations Department at (495) 363-3232.