Clearing for the Derivatives market
Clearing for the Derivatives market is provided by CJSC JSCB National Clearing Centre (hereinafter NCC), a specialized clearing organization. Therefore, the principle of risk sharing between the organizer of trading and the clearing house is fulfilled here in full.
The NCC performs central clearing on the Derivatives market and acts as the central counterparty for all trades executed on the market. Initial margin is posted using the NCC account opened with the National Settlement Depository (hereinafter the NSD). Variation margin is registered and transferred through the NCC's internal clearing registers.
The NCC is the settlement depository for the Derivatives market. To guarantee that the obligations under futures and options contracts will be met the NCC blocks the securities posted by the clearing members and their clients to secure their open positions. The NCC also provides securities settlement in deliveries.
To secure settlement of transactions concluded on the Derivatives market the Contingency fund made up of contributions of the clearing members was established.
Initial margin and Contingency Fund assets are kept on the NCC's accounts opened with the NSD.