Time of Innovations

1. Address of the Chair of the Supervisory Board of CCP NCC

S. P. Lykov, Chair of the Supervisory Board of CCP NCC

The past year posed many challenges for the global order: we had to learn quickly to work efficiently in the absolutely new environment of the global pandemic, to reshape business processes, to explore new opportunities and to defend ourselves against new threats. National Clearing Centre (NCC) put a lot of effort to withstand the above hardships, to ensure business continuity of the services rendered to Moscow Exchange Group in this challenging environment.

The year of 2020 was a particularly special year in the history of NCC not only because of the pandemic. The project of NCC’s transformation, ensuring the efficient development for the benefit of Moscow Exchange Group and its clients, became one of the ambitious and successfully achieved objectives.

As a part of the project, the Supervisory Boards of Moscow Exchange and CCP NCC defined the approaches to interaction between the organizations in the process of NCC’s transformation and to building of the most efficient interaction with Moscow Exchange; according to the resolution of NCC’s Supervisory Board, the new management team was formed, which objectives were both ensuring the company’s sustainable development and maintaining the absolute reliability and continuity of its functioning, preserving the key expertise and experience. Eddi Astanin, Chair of NCC’s Executive Board, who had extensive experience of working for Moscow Exchange Group as the Chair of the National Settlement Depository, was entrusted with the implementation of this ambitious project.

One of the most notable achievements in 2020 was the approval by NCC’s Supervisory Board of the Strategy for Development of the Risk Management Framework of CCP NCC, which became the significant part of the Risk Management Strategy groupwide. The above document resulted in NCC’s establishing the set of the high priority activities aimed at continuous and gradual improvement of the central counterparty’s risk resilience.

The Supervisory Board also put great emphasis on the development of the credit institution’s internal control framework: in 2020 the Audit Committee of NCC’s Supervisory Board was formed to ensure proper planning aimed at developing the internal audit, internal control, and compliance systems and join efforts with the relevant business units of other companies of Moscow Exchange Group in order to create synergies.

Without doubt, introduction of such large-scale changes by NCC cannot be completed within one year, however, the decisions made in 2020 laid the foundation ensuring the harmonious strategic, technologic and economic development of NCC as one of the key components of Moscow Exchange Group, which is a leading infrastructure platform of the Russian financial system.

Respectfully yours,

S.P. Lykov, Chair of the Supervisory Board of CCP NCC