Guarantee Fund System

One of the key elements of the new RMS is guarantee funds, which reduce the amount of the required deposit margin for market participants and improve the general reliability of the RMS. Guarantee funds are used to make a compulsory closure of a Clearing Participant’s positions at market prices when the insolvent Clearing Participant (defaulter)’s deposit margin is insufficient.

The guarantee system in the MICEX derivatives market provides for the following guarantee funds:

• Reserve fund for risk coverage, which is a fund formed from the clearing organization’s assets (presently –MICEX CJSC);
• Accumulation fund, which is a fund formed from deductions from clearing commissions in accordance with the FSSM requirements.

RMS upgrades also provide for forming a Collective Clearing Fund made up of Clearing Participants’ assets on a joint foundation.

Reserve Fund

In accordance with the resolution of the special meeting of MICEX CJSC shareholders, which took place on July 22, 2008, a reserve fund in the amount of 2 billion RUR was created to cover risks related to performing operations in the MICEX Group derivatives market.

Accumulation Fund

The accumulation fund is made up of a monthly deduction of two percent of the total sum of the clearing commission received by the clearing organization (MICEX CJSC) from Clearing Participants for the previous month.

Collective Fund

The amount of the Clearing Participant’s contribution to the Collective clearing fund will depend on:

• Clearing Organization membership category in the MICEX derivates market (minimum contribution to the Collective Clearing Fund);
• Amount of the Clearing Participant’s open position and his credit status (regular contribution to the Collective Clearing Fund).

The contribution to the Collective Clearing Fund, along with the deposit margin, will be accounted for when establishing limits on the volume of operations for the Clearing Participant.