Time of Pioneers

3. Industry Position of NCC

The general overview of NCC’s clearing operations in the on-exchange markets in late 2020

Past year’s most important results and events worth mentioning are as follows:

I. Clearing Business Development

  1. To enhance the reliability and sustainability of Moscow Exchange’s clearing systems, the Stabilization 2.0: Operational Reliability of Clearing Project was implemented to automate a number of processes not being daily repetitive tasks but posing substantial risks for NCC in case of operational errors. The following objectives were attained:
  • the Cash Settlement process was automated;
  • the mechanism was created to disable collateral withdrawal based on the settlement account/market/all markets in case of settlement procedure introduction;
  • the process for allocating positions of defaulting clearing members among non-defaulting ones was automated;
  • portability of assets in the securities and FX markets was automated;
  • the process of verification of positive target figures T+ was automated upon change in a clearing member’s category in order to manage the default fund requirements;
  • the functionality for discounting the clearing center’s liabilities were implemented;
  • the functionality for verifying the sufficiency of collateral in case of transfer of liabilities and collaterals between different settlement accounts of the same clearing member in the securities and derivatives markets was created.
  1. The Separation of Trading Participants and Clearing Members in the Securities Market Project was implemented regarding the enhancements related to automation of the task to open and close settlement accounts and trade accounts of the 2nd and 3rd levels, thus providing more efficient and convenient monitoring of clients’ positions by clearing members and enabling them to consolidate their assets on one settlement account and trading and clearing account.
  2. The Clearing Terminal Development Project was implemented, being more convenient technology service for handling a clearing member’s items (settlement accounts, trade accounts, collateral accounts, account details for returning collateral, sub-accounts clusters, clearing register sections, etc.). Using the clearing terminal, the items were managed vie the secure data channel established between the clearing member and NCC’s accounting systems using two-factor authentication.
  3. The facility for inclusion of settlement account of the SFD market into the Unified Pool was implemented. As a result, the SFD market participants were provided with access to the Unified Pool capabilities, i.e. portability of profiles of Russian Rubles, US dollars and Euros between the securities market and the SFD market and usage of securities as an individual collateral.