National Clearing Centre becomes Russia's first qualified central counterparty
The National Clearing Centre (NCC) has become Russia"s first qualified central counterparty (CCP). The CBR announced on 18 October that the NCC"s management quality met the requirements for banks acting as CCPs to be recognised as qualified CCPs, which are:
- The management quality of a bank acting as a central counterparty on the Moscow Exchange is officially recognised as complying with state regulatory requirements and international standards.
- The reduction of regulation on the NCC"s operations as a qualified CCP is a direct reflection of the international initiative to define banks" capital adequacy (Basel III).
- Russian banks are now able to use reduced risk ratios required of CCPs in calculating their H1 CARs.
- Banks" credit requirements on the qualified central counterparty are calculated with a 5% risk ratio instead of 20% or 100% as for other counterparties.
- Russian banks are not obliged to calculate risk of a securities issuer for exchange repo deals in which the NCC acts as central counterparty.
The NCC"s attainment of qualified CCP status provides additional guarantees of Russia"s exchange infrastructure to local and foreign clients.
For further information, please contact the Public Relations Department at (495) 363-3232.