CJSC JSCB National Clearing Centre (hereinafter NCC) is a subsidiary of MICEX Group performing functions of a clearing organization and central counterparty in the financial market. Since December 2007, NCC has been rendering clearing services in the MICEX FX market, and since November 2011 – in the Group’s securities market.

As central counterparty, NCC assumes the risks under the transactions concluded by the participants during the exchange trading, acting as intermediary between the parties: i.e. as the seller for each buyer and as the buyer for each seller, which so replace their contractual relations with each other with relevant contracts with the central counterparty.

NCC’s main, and most important, function is to maintain stability in the serviced financial market segments through implementation of the state-of-the-art risk management system conforming to the international standards and provision to the participants of such clearing services which would enable efficient use of the allocated funds.

The transfer of the clearing function to the bank founded for this particular purpose became an important step in MICEX Group’s development, enabling separation of the risks of a clearing institution from the exchange risks by reassigning those to a highly capitalized clearing bank.

NCC’s banking license enables it to significantly improve reliability and efficiency of MICEX Group’s clearing and settlement system, because, as a bank, NCC, on the one hand, is subject to strict regulation and supervision from the Bank of Russia, and, on the other hand, it can access the Central Bank’s refinancing instruments and obtain interbank market funds.

By using services rendered by NCC as clearing organization and central counterparty, the MICEX market participants get a number of extra benefits:

• NCC guarantees performance of obligations to each non-defaulting participant under the transactions concluded with the latter, irrespectively of how other market participants perform their obligations.
•  NCC spares participants from the need to assess risks and set limits for each other, since the participants only assess the risks of NCC as central counterparty.
• NCC’s clearing service with partial margin posting, as well as the netting performed by the bank, enable the participants to use their financial assets more efficiently and cut transaction costs.

NCC’s strategic objective is to provide the participants of various financial market segments with integrated clearing services implying the use of a single margin and single positions (limits) of the participants in course of servicing the latter in all MICEX exchange-based markets and over-the-counter markets.

Since 2009, NCC has been the member of the European Association of Central Counterparty Clearing Houses (EACH), and since 2011 – member of the Global Association of Central Counterparties – CCP12. Its membership in these associations demonstrates appreciation of conformity of NCC’s performance to the international standards and recognition of the success achieved by MICEX Group in developing the exchange infrastructure.

National Clearing Centre presentation
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