Bank “National Clearing Centre” (Closed Joint-Stock Company) is a novelty for the Russian financial market. Established by Closed Joint Stock Company “Moscow Interbank Currency Exchange” (MICEX Group) as a separate corporate entity, “National Clearing Centre” (NCC) is a real step towards development of centralized clearing, where risks of a highly capitalized clearing institution will be separated from risks incurred by an exchange.

The establishment of NCC is not only a target effort made by MICEX to make its own exchange infrastructure more competitive, but also an offer to all participants of other exchange or over-the-counter markets to benefit from services of the clearing institution that operates in compliance with advanced international standards.

The NCC mission is to perform functions of the clearing center and central counterparty in relation to all transactions entered into by traders.

These functions performed by NCC offer a number of advantages to market players, for example:

• risk mitigation
• lower transactional costs of market players;
• clearing in the exchange and over-the-counter markets;
• minimal time for clearing settlements;
• opportunities for participants to raise loans for settlement of transactions concluded in the exchange and over-the-counter markets;
• legal transparency of transactions: NCC becomes a party to all transactions entered into by participants in various segments of the financial market; all net liabilities are calculated with respect to NCC; NCC is responsible for its liabilities to participants no matter whether other participants perform their obligations or not;
• higher efficiency of financial assets due to participation in guarantee funds and partial security.

NCC's activities allow a full range of services to be provided to participants in various segments of the financial market.

From December 10, 2007 NCC provides centralized clearing services in the MICEX Group FX market. Further, NCC plans to expand its services to the stock, forward, commodity, and government securities markets. The strategic goal of NCC is to render integrated clearing services to the MICEX exchange market players that provide for maintaining of single positions (limits) for participants in all MICEX exchange markets.

National Clearing Centre presentation
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Primary results of the bank "National Clearing Centre" operations in 2008
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