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Central Counterparty Institution in the currency exchange market : current situation and development prospects. Central Counterparty institution and its role in financial markets.
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A CCP guarantees fulfillment of obligations to each bona fide participant in respect of his transactions regardless of fulfillment of obligations by other market participants.
A CCP contributes to increasing market liquidity, reduction of market participants’ costs while closing transactions, and also to development of instruments and services, allowing to increase the efficiency of usage of their resources by market participants.
CJSCMoscow Interbank Currency Exchange - 100 %
funds7 986 mln. rubles (as of 01.11.10 ~187 mln. Euro)
regulatory value – not less than 10% (Regulation of CBRF No.110-I)
regulatory value – not less than 15% (Regulation of CBRF No.110-I)
regulatory value – not less than 50% (Regulation of CBRF No.110-I)
value according to annual statements for the year of 2008= 17,27%.
value according to annual statements for the year of 2008= 0,19%.
Information on the trades
(extract from the trades registrar)
Report on escrow funds
Notification on calculation of the NCC fee,
NCC Risk Covering Fund
Bank of Russia
Traded instruments TOD and SWAP
Traded instruments TOD and SWAP
EUR for RUB
Traded instrument TOM
Closing of settlements ofEUR/RUB
Closing of settlements of
orRUB to the collateral
CP pays inEURandRUB,
CP pays in EURandUSD,
CP pays inUSDandRUB,
NCC pays inEUR, USD andRUB
CJSCJSCBNational Clearing Centre
BranchNo.5 of the
Moscow MTA of
the Bank of Russia
1. Correspondent account NOSTRO in rubles in the MICEX SH (balance accountNo. 30402).
2. Correspondent account NOSTRO in rublesin BranchNo.5 of the Moscow MTAof the Bank of Russia (balance accountNo.30102).
3. Correspondent accounts LOROof the Clearing participants– RCF participants in rubles for keeping of the RCF assets (balance accountNo. 30109).
4. Correspondent accounts in non-resident banksin foreign currency(balance accountNo.30114).
Conducting oftreasury operations using ORTETallows to:
- obtain real-time information on state of correspondent account, on the amount of the set limit of intraday credit and overnight credit, and as a consequence,plan cash flows more precisely;
- significantly mitigate liquidity risk and credit risk;
ORTET provided NCC a possibility to make settlements with regional clearing participants without a settlement session joint with the Bank of Russia.
Currently transfer of funds between regional settlement centers on total liabilitiesof clearing participants is made by NCC through ORTET upon such obligations/claims of the clearing participants are determined at the close of trading.
Settlements with regional clearing participants can also be made by NCC using ORTET (if the clearing participant has an access hereto).
NCC – is a reliable partner of the financial market participants, having efficient risk management instruments, including:
EACH was established in 1991 by major European Clearing houses for the purpose of setting professional contacts, related to clearing and risk management problematic.
A self-assessment conducted in terms of compliance with Recommendationsof Committee on Payment and Settlement Systems of the Bank for International Settlements and Technical Committee of International Organization for Securities Commissions for Central Counterparties (CPSS/IOSCORecommendations) demonstrated, that NCC activities as a Central Counterparty on the whole comply with acceptedinternational standards.
NCC implements in practicestress-testing on an ongoing basis for the purpose of assessment of influence on NCC activities of the following risks :
price (securities) risk;
Central Counterparty risk, related to possiblelosses in case of default transactions compensation.
Afterwardsstress-testing system of NCC financial stability will includealso operational risk assessment.
NCC will constantly increase its equity capital so that it will meet the market growing demands. By 2011 the aggregate capital is planned to be increased to the level of more than 9 bn. rubles.
Stress-testing system allows to check NCC readiness to crisis, improve relevancy of made strategic and operating decisions in the field of risk management and the quality of equity capital planning
Procedure for periodicalstress-testing and application of its results:
Scenario analyses on the basis of repetition of historical events (crisis) and hypothetical events simulation;
Quantitative risk assessment through critical market volatility analyses or analyses of marginal disadvantages;
Assessment of equity capital adequacy (capital) and tier 1 capital for risks covering;
Recommendations to management bodies of NCC in respect of keeping capital adequacy ratio through limits corrections of free cash distribution system, change in assets structure and parameters of RMS in exchange markets;
Recommendations to management bodies of NCC in respect of planning of capital development, capital structure and profit disposition.
– clear and transparentform of mutual relationship on the markets for foreign capital;
– guarantor of stability of the financial market functioning;
– uniform standards and rules of operating cooperation in different market;
– legal transparency of operation in the market;
– increasing of market efficiency, lowering of transactional costs of market players;
– ensuring of conformity with the requirements of international organizations (such as International Organization for Securities Commissions (IOSCO)and Committee on Payment and Settlement System of the Bank for International Settlements (CPSS)).
Our address: Russia, 125009, Moscow,
13 Bolshoy KislovskyLane
Telephone: +7 (495) 782 97 94
Thanks for your attention!