Time of Innovations

2. Address of the Chair of NCC’s Executive Board

Eddi Astanin, Chairman of the Executive Board of CCP NCC

Esteemed Partners and Colleagues!

In 2020, NCC carried out its activity in accordance with the plans set forth by the strategy of Moscow Exchange Group and the objective set by the stakeholders and aimed at transforming the Company into an operationally autonomous, economically efficient, and innovative one  developing  within the frame  work of Group’s strategy.

In 2020, we all had to work in the extremely unusual environment due to the pandemic, which led to serious challenges related to our employees’ health,  increased cyber threats and ensuring of  functioning continuity of all  systems and services in the highly volatile environment in all financial market segments.

We acquired unique experience of arranging remote work of up to 80% of the staff without compromising work quality, missing the project deadlines and breaching our obligations to clients and partners. The technologies of risk management, default management and clearing of NCC, as a central counterparty, passed the stress test successfully.

At the end of the year, the amount of clearing trades reached RUB893 trn, which by 23% exceeds the 2019 figure. The net profit was RUB17 bn, exceeding the 2019 result by 9%. All prudential regulations were met. The collateral in cash and securities amounted to RUB17 trn thus exceeding the 2019 indicator by 34%.

The quality of NCC as a clearing organization and central counterparty was evidenced by the ratings assigned to the Company in 2020. The international rating agency Fitch Ratings confirmed the long-term issuer default rating (IDR) of NCC in foreign currencies at BBB with a Stable outlook and confirmed the long-term issuer default rating (IDR) in domestic currency at ВВВ with a Stable outlook. The Analytical Credit Rating Agency (hereinafter ACRA) confirmed NCC’s national credit rating at AAA(RU) with a Stable outlook.

In 2021, the company’s activity will be focused on NCC’s IT architecture modernization, implementation of the initiatives to develop risk management (improving the accuracy of risk parameter calculation and reducing procyclicality of margin models, business process automation and creating the control environment (COSO model, and transiting from processes to risk matrixes), to develop clearing services in the on-exchange markets of Moscow Exchange Group and in OTC market according to Moscow Exchange Group’s strategic objectives.

I would like to sincerely thank NCC employees, the Supervisory Board, clients and partners for concerted and joint actions and to express confidence in the high development potential of NCC as a central counterparty and systemically important infrastructure of the Russian financial market.

Eddi Astanin, Chairman of the Executive Board of CCP NCC