Requirements for Clearing Members
CM categories
CM categories:
- Category "О" Clearing Member - General Clearing Member (Clearing Broker inclusively), is admitted to the clearing of partially secured trades
- Category "B" Clearing Member - Individual Clearing Member, is admitted to the clearing of partially secured trades
- Category "C" Clearing Member - Individual Clearing Member, is not admitted to the clearing of partially secured trades
Requirements in respect of Category "C" Clearing Members:
General requirements
- Clearing membership agreement in force
- agreement on integrated technical service provision, concluded with the Technical Centre, in force
- to be a participant of the EDI System of the Moscow Exchange
- to meet NCC requirements regarding information and reporting provision, stipulated by the Clearing Rules
Additionally for Credit Institutions
- valid banking license issued by the Bank of Russia
Additionally for Non-credit Institutions, which perform licensed activities on the financial Market
- valid license, issued by the Bank of Russia, on performing the particular type(s) of activity by non-credit financial institutions
- valid broker license and/or dealer license and/or trust management license (for Clearing Members – Non-credit Institutions that are Professional securities market participants)
Additionally for Non-credit Institutions, which perform microfinance activities
- information on such entities shall be included by the Bank of Russia in the state register of microfinance market participants
Additionally for Non-resident Banks
- valid special permission (a license or other basement), issued by a competent authority of the state of establishment of a Non-resident Bank, on the basis of which a Non-resident Bank is entitled to execute banking operations, stipulated by a personal law
Additionally for Clearing Members that are Non-resident Non-credit Institutions or Non-credit Institutions, which do not perform licensed activity on the financial market or microfinance activity
- valid special permission on performing operations on financial markets, issued by a competent authority of the state of establishment of a Clearing Member, or own assets (capital) not less than 1 000 000 000 (one billion) Russian rubles
Requirements in respect of Category "B" Clearing Members:
in addition to requirements, set in respect of Clearing Members of the category "C":
General requirements
- contribution to the Default Fund of the relevant market in the amount defined for each market
- there shall be no facts showing decline in the financial statement and/or there shall be no information that gives reasons to consider decline in the financial statement of a Clearing Members possible and/or inability of a Clearing Member to fulfil its obligations under Partially Secured Trades, to pay Margin Calls and/or other obligations of a Clearing Member, arising from the Clearing Rules (this requirement does not refer to national (central) banks of EurAsEC/EAEC member states)
Financial stability requirements
- no grounds for bankruptcy-prevention measures under the laws of the Russian Federation on insolvency (bankruptcy) or under the domicile law of the Clearing Member
- the Clearing Members - Credit Institutions shall comply with mandatory indicators and requirements for the minimum amount of equity (capital) set by the Bank of Russia / established by the competent authority of the state of establishment if, in accordance with the national legislation of the state of establishment of the Clearing Member, such mandatory indicators / requirements are established
- no grounds for revocation by the Bank of Russia of the banking license under the banking legislation, no grounds for withdrawal in accordance with the national law of the country of registration of the Non-Resident Bank of a special permit (license or other document) issued by the competent authority of the country of registration of the Non-Resident Bank, where under the Non-Resident Bank is entitled to conduct banking operations
Requirements in respect of Category "O" Clearing Members
in addition to requirements, set in respect of Clearing Members of the categories "B" and "C":
General requirements
- proprietary funds (equity) not less than 50 000 000 000 (fifty billions) Russian rubles,
or
- proprietary funds (equity) not less than 20 000 000 000 (twenty billions) Russian rubles and
- international long-term credit rating in respect of obligations in Russian rubles or in foreign currency not lower than BB+ according to the rating agencies "Standard & Poor's" or "Fitch Ratings" or "Ba1" according to the rating agency "Moody's Investors Service", or
- national credit rating not lower than А- according to the Analytical Credit Rating Agency (АCRА) or the rating agency "Expert RA",
or
- proprietary funds (equity) not less than 20 000 000 000 (twenty billions) Russian rubles under condition that an organization that is entitled directly or indirectly supervise the activity of a Clearing Member, has:
- international long-term credit rating in respect of obligations in Russian rubles or in foreign currency not lower than BB+ according to the rating agencies "Standard & Poor's" or "Fitch Ratings" or "Ba1" according to the rating agency "Moody's Investors Service", or
- national credit rating not lower than А- according to the Analytical Credit Rating Agency (АCRА) or the rating agency "Expert RA".
- valid license issued by the Bank of Russia on executing banking operations with funds in Russian rubles and foreign currencies and/or a license on performing clearing activity (for Clearing Members - Residents).
Additionally for Clearing Members that are Non-resident Non-credit Institutions
- valid special permission (license or other basement), issued by a competent authority of the state of establishment of a Clearing Member
Special requirement in respect of Clearing Members
Residence | Organization type |
Organization category |
Category "C" | Category "B" | Category "O" | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Securities, Deposit and Credit Market |
FX and Precious Metals Market |
Securities, Deposit and Credit Market |
FX and Precious Metals Market |
Derivatives Market |
Standardized OTC Derivatives markets |
Commodities Market |
Securities, Deposit and Credit Market |
FX and Precious Metals Market |
Derivatives Market |
|||
Residents | Credit Institutions | Banks and non-bank financial institutions | In the absence of financial market trading license Equity ≥ 1 bn RUB | Equity ≥ 50 bn RUB or - Equity ≥ 20 bn RUB and - External rating: S&P / Fitch ≥ BB+ or Moody's ≥ Ba1 or АCRА/ Expert RA ≥ A-* |
||||||||
Non-credit Institutions | Professional securities market participants | Equity ≥ 0,3 bn RUB | ||||||||||
Non-credit Institutions | Investment fund managers | Not admitted | ||||||||||
Non-credit Institutions | Insurance companies | собственные средства (капитал) ≥ 10 млрд руб. и рейтинг S&P / Fitch на уровне не ниже BB-, либо рейтинг Moody's не ниже Ba3, либо рейтинг АКРА / Эксперт РА не ниже A- |
||||||||||
Non-credit Institutions | NPF | Not admitted | ||||||||||
Regional authorities | External rating: S&P / Fitch ≥ BB+ or Moody's ≥ Ba1 or АCRА/ Expert RA ≥ A- |
|||||||||||
Corporations | Equity ≥ 1 bn RUB or Clearing Member shall provide an irrevocable and unconditional guarantee issued by an entity that has External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A- |
Equity ≥ 1 bn RUB | Equity ≥ 10 bn RUB | Equity ≥ 50 bn RUB or - Equity ≥ 20 bn RUB and - External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-* |
Equity ≥ 10 bn RUB or - Equity ≥ 20 bn RUB and - External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-* Clearing member has at least 2 (two) employees, all of which correspond to the requirements, stipulated in paragraph 4.6.3 of the Clearing Rules |
Equity ≥ 0,1 bn RUB and Clearing Member shall provide a letter from an organization that is entitled directly or indirectly supervise the activity of a Clearing Member has Equity ≥ 1 bn RUB |
||||||
Non-residents | Banks | Equity ≥ 10 bn RUB or - Equity ≥ 5 bn RUB and - External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 |
Equity ≥ 0,3 bn RUB and External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-* |
|||||||||
Financial companies | Equity ≥ 0,3 bn RUB and External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-* |
|||||||||||
Corporations | Equity ≥ 1 bn RUB or Clearing Member shall provide an irrevocable and unconditional guarantee issued by an entity that has External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A- |
Equity ≥ 1 bn RUB | Non EurAsEC/EAEC Clearing Member: Equity ≥ 10 bn RUB EurAsEC/EAEC Clearing Member: Equity ≥ 50 bn RUB or - Equity ≥ 10 bn RUB and - External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or - Equity ≥ 20 bn RUB and - direct state ownership - more than 50% |
Equity ≥ 50 bn RUB or - Equity ≥ 20 bn RUB and - External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-* |
* Clearing Member or an organization that is entitled directly or indirectly supervise the activity of a Clearing Member
Clearing Member, which is not admitted to the clearing service on the relevant market, shall submit the Application for the clearing service provision in order to receive admission.
Clearing Member, which is admitted to the clearing service on the relevant market, shall submit the Application for the category change in order to change category. NCC executes such Application if the following requirements are met:
- there is no Margin Calls through all Settlement Accounts;
- there is no unpaid Debts through all Settlement Accounts.
NCC changes category if the abovementioned requirements are met and also if there is no non-fulfilled obligations under Trades, executed by the Market Participant with the indication of the relevant Clearing Member of the category "O" as the clearing broker.
- NCC is entitled to change category of the Clearing Member from "C" to "B" without application if the Clearing Member meets the abovementioned requirements, set for the Clearing Member of the category "B".
- NCC is entitled not to admit the Clearing Member to the clearing service on the relevant market(s):
- in the absence of positive financial result or positive retained earnings as of the last reporting date;
- provided the Clearing Members does not comply with the financial stability requirements;
- in the case of reputation risk that can arise from clearing service provision to the Clearing Member.