Operations

Bank of Russia lending operations at MICEX, or collateral lending operations, involve the Bank of Russia executing a trade with a lending organization using the lending organization’s securities as collateral for the loan. Trades are made at auction (“American” or “Dutch” auctions) or on standard terms at fixed interest rates.

Lending trades are made between the lending organization and the Bank of Russia by entering the lending organization’s bid and the Bank of Russia’s counter bid into the MICEX Trading System.

When conducting a collateral lending auction, lending organizations can make competitive and non-competitive bids (both with and without consent to partial satisfaction) in order to receive a collateral loan.

To execute lending trades at fixed interest rates, the lending organizations enter bids for receiving a collateral loan in the MICEX CJSC Trading System at a fixed interest rate that must reflect the interest rates established by the Bank of Russia.

The Bank of Russia specifies the conditions for collateral lending auctions and lending operations at fixed interest rates on standard terms, such as the date and time that operations are performed, the procedure for the auction, the share of non-competitive bids at the auction, and so forth.

Once lending trades have been made, the Bank of Russia transfers the sum of the loan according to the payment details mentioned in the extract from the trading register to the bank account of a lending organization in the subdivision of the Bank of Russia’s clearing network or the bank account of an authorized clearing non-banking lending organization (CNLO).

Settlements on lending bargains with the Bank of Russia are carried out without the participation of MICEX CJSC.

Upon the conclusion of deposit and/or lending trades, the following reports are created in the MICEX Trading System and automatically sent to participants: the extract from the trading register, the extract from the register of deposits “until called for” (for respective trades,) and stock exchange information. The extract from the register of bids is submitted upon the results of the trading day at the participant’s request.