national clearing centre national clearing centre 2008
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National Clearing CentreNational Clearing Centre ( (NCCNCC))
NCC was incorporated on October 24, 2005, as a closed joint-stock company
NCC’s shareholders are: Moscow Interbank
Currency Exchange, 99.329%National Depository Center, 0.671% Authorized capital:
– in 2008, the authorized capital will increase to 1.735 million roubles (~ EUR 49 million).
– today, the equity is 824,4 million roubles, including the authorized capital of 700 million roubles.
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MICEX Settlement House
MICEX Settlement House
MICEXMICEX
NDCNDC
• Cash settlements• Depository operations
• Organization of trade: foreign currency, government securities, bonds, standard contracts.
• Clearing in government securities markets (stock and futures markets)• Engineering project support and development of new IT products
Saint Petersburg Yekaterinburg Samara Nizhni Novgorod
Novosibirsk Rostov-on-Don Vladivostok
Regional currency and stock exchanges
Regional currency and stock exchanges
MICEX Stock Exchange MICEX Stock Exchange
National Mercantile Exchange National Mercantile Exchange
• Organization of trade in stock, corporate andmunicipal bonds,units in mutual funds, stock index futures
• Government intervention inthe grain market
• Trade: petroleum products, grain
NCCNCC
NCC in the MICEX GroupNCC in the MICEX Group
• Clearing operations and trade settlements
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NCCNCC’s Operating Principles’s Operating Principles
NCC is the central counterparty control of collateralization of executed transactions control of performance of obligations based on PVP and DVP
principles ongoing maintenance of NCC’s liquidity, specifically through
the retention of liquidity suppliers NCC takes risks associated with possible non-performance of
clearing obligations by clearing members
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Basic Elements of Basic Elements of NCCNCC’s Risk ’s Risk Management SystemManagement System
Limitation of traded instrument price fluctuations Preliminary depositing of participants’ funds Availability of guarantee funds Fixing of various types of limits Setting requirements for the clearing participants’ financial
standing and control over it Mechanism for the substitution of an unfair participant by the
Bank of Russia MICEX’s of 2.6 billion rubles guarantees NCC’s capital
From December 10, 2007,From December 10, 2007,National Clearing Centre operates as central National Clearing Centre operates as central
counterparty in the MICEX FX marketcounterparty in the MICEX FX market
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NCC TODAYNCC TODAY
NCC’s total balance as of April 1, 2008, is 37,8 billion roubles Total balance of derivative transactions as of April 1, 2008, is
167.8 billion roubles USD- and EUR-denominated account balance as of April 1,2008,
in the rouble equivalent exceeds 10 billion rouble The total number of banks-clearing participants is 464, including
338 Moscow banks and 126 regional banks 228 banks participate in the USD 4,6 million Risk Covering Fund The equity is 824,4 million roubles, including 700 million roubles of
the authorized capital Daily turnover of FX trade in March reached USD 7 billion
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Volumes of Trade in the Foreign Exchange Volumes of Trade in the Foreign Exchange Market Involving the Central CounterpartyMarket Involving the Central Counterparty
January
2007
February
2007
March
2007
January
2008
February
2008
March
2008
Total trade volumes
(roubles in billions)
1,466.3 2,093.6 2,028.9 2,749.4 3,468.3
2,484.5
Including EUR-
denominated volumes
39.6 45.9 37.3 90.9 144.4 94,8
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Correspondent BanksCorrespondent Banks
JPMorgan Chase Bank, New York The Bank of New York, New York Deutsche Bank, Frankfurt/Main VTB Germany, Frankfurt/Main BELVNESHECONOMBANK, Minsk PRIVATBANK, Dnepropetrovsk Bank TuranAlem, Almaty
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NCC’s Regional Settlement ModelNCC’s Regional Settlement Model
Saint Petersburg
Moscow
Nizhny Novgorod
Novosibirsk
Rostov-on-Don Yekaterinburg
Vladivostok
Samara
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Development of NCC’s Clearing Development of NCC’s Clearing OperationsOperations
Introduction of the central counterparty in the REPO government securities market
Upgrading of risk management system Broadening the range of services provided Extension of clearing to other financial market segments
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Improvement of Risk Management Improvement of Risk Management System in the Currency MarketSystem in the Currency Market
Setting of the exchange rate fluctuation limits and preliminary depositing standards depending on the external market situation adjusted for the current composition of two-currency basket:
- - symmetric increase of the exchange rate fluctuation limits with respect to the central rate of the current trading day and a proportionate increase in preliminary depositing standards;
- non-symmetric setting of the exchange rate fluctuation limits with respect to the central rate of the current trading day towards the external market trend without changing preliminary depositing standards.
Increase of the Risk Covering Fund Setting of various modes of operations performed by trade participants depending on
the assessment of the current market volatility and the status of their open positions Insurance of the NCC operational risks Extension of Risk Management System to various financial market segments Establishing of the Risk Committee and arranging of its functioning
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Modes of OperationsModes of Operations
Participant will have the opportunity to operate depending on the assessment of the current market volatility and the status of his open market positions:Basic mode: the participant’s operations are not limited, for collateral fully covers potential exchange rate risk associated with his positions;Restricted mode: with the scale of the participant’s potential losses reaches the amount of collateral, the participant will have the opportunity to operate only for closing the existing positions;Position close-out mode: if the participant fails to allocate collateral or its amount is not sufficient, the participant’s operations are put on hold and his position is closed out during the trading session.
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NCCNCC’s Services Development’s Services Development
Setting the limits of EUR-denominated net operations Currency band regulation Online matching of clearing participants’ positions Intraday crediting of clearing participants to facilitate their obligations’ settlement Maintaining a single ruble-denominated position of participants in exchange markets Offering clearing participants an opportunity to settle securities transactions in foreign
currency Offering participants an opportunity to execute transactions in the stock market with
partial preliminary collateral Creating a single clearing participant’s “portfolio” to settle operations in various financial
market segments Beginning of operation in the interbank credit market
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National Clearing CentreNational Clearing Centre
Thank you for your attentionThank you for your attention!!Thank you for your attentionThank you for your attention!!
Our address: Russia, 125009, Moscow,
Bolshoy Kislovsky Pereulok, 13
Telephone: +7 (495) 782 97 94
E-mail: [email protected]
Internet: www.nkcbank.ru