General Information
The National Bank Clearing Center (Closed Joint-Stock Company) (NCC) is unique in Russia’s financial market. The MICEX Group’s establishment of the NCC as a separate legal entity was an important step towards developing centralized clearing, where the risks of a highly capitalized clearing institution are separated from the risks incurred by an exchange.
MICEX’s establishment of the NCC is not only intended to make its own exchange infrastructure more competitive, it is also an invitation to participants in other exchange or over-the-counter markets to use the clearing institution’s services, which operate in compliance with international standards.
The NCC’s task is to act as a clearing center and central counterparty for all transactions made.
The NCC’s performance of these financial market functions creates a number of advantages for participants, for example:
- lower risks;
- lower transactional costs;
- clearing in exchange and over-the-counter markets;
- minimal time for clearing settlements;
- participants have the ability to raise loans for settlements on trades executed in exchange and over-the-counter markets;
- legal transparency of trades: the NCC becomes a party to all trades executed by participants in various segments of the financial market; all net liabilities are calculated with respect to the NCC; the NCC is responsible for its liabilities to participants regardless of whether or not other participants perform their obligations;
- more efficient use of financial assets due to participation in guarantee funds and the provision of partial security.
The NCC’s activities allow the provision of integrated services to participants in various segments of the financial market.
At first, the NCC will organize centralized clearing in the MICEX Group’s FOREX. The NCC’s services are then planned to extend to the stock market, derivatives market, commodities market, and government-backed securities market.
The NCC’s strategic goal is to provide participants in the MICEX exchange markets with integrated clearing services including maintaining single positions (limits) while serving participants in all of the MICEX exchange markets.
