Time of Pioneers

3. Industry Position of NCC

IV. Corporate Governance Development

  1. To achieve a balance of interests of users NCC service and Moscow Exchange’s services and to ensure the Company’s corporate governance efficiency, while drafting the development plans, carrying out the operating activities and rendering services to users of NCC and Moscow Exchange in compliance with the Company transformation principles approved by the Supervisory Board of Moscow Exchange, the Memorandum of Understanding between NCC and Moscow Exchange was drawn and entered into.
  2. For improvement of the corporate governance efficiency, the Audit Committee of NCC’s Supervisory Board was established. The key objective of the Committee’s activity is the assistance to the Supervisory Board in effective implementation of control functions of financial and economic activities, control and analysis of the risk and capital management framework effectiveness, compliance and provision of additional control in the area of internal and external audit. The Audit Committee was formed with engagement of the Supervisory Board members, being independent directors.
  3. CCP NCC’s Asset Management Commission was established to develop recommendations for the management bodies regarding the list, quality and quantity of assets purchased by the Company and to be included into its portfolio, to establish limits/treasury transaction limits, regarding the plan for generating revenues from transactions with assets, for setting the securities purchase objectives.

V. 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.

VI. The Analytical Credit Rating Agency (hereinafter ACRA) confirmed NCC’s national scale credit rating at AAA(RU) with a Stable outlook. According to ACRA experts, the credit rating and the outlook assigned to CCP NCC were based on its strong and sound business profile, exceptional position in liquidity and capital buffer, which offset the credit institution’s risk profile, and on the fact that the above rating was additionally supported with NCC’s critical systemic importance on the Russian financial market.

VII. Maintenance of the satisfactory level of NCC’s capital was ensured; according to the financial statements, the Company’s equity capital (taking into account EARD) was 3 bn as of 01.01.2021, the net profit before tax (taking into account EARD) was RUB22.0 bn, the accrued dividends were RUB15.9 bn, out of which RUB8.1 bn were paid.

Statistics as of 31 December 2020:
  • total number of clearing members was 522 organizations (2019: 537 clearing members), out of which the number of clearing members admitted to the undermentioned markets was as follows:
    • in the FX and Precious Metals Markets: 400 clearing members (2019: 417 clearing members)
    • in the Securities Market: 420 clearing members (2019: 424 clearing members)
    • on the derivatives market: 95 clearing members (2019: 101 clearing members)
    • on the SFD market: 52 clearing members (2019: 46 clearing members)
    • in the commodity market of NAMEX: 13 clearing members (2019: 19 clearing members)
  • the volume of clearing members’ cleared obligations was RUB1,742 trn (2019: RUB1,450 trn), out of which;
    • with the central counterparty: RUB1,619 trn (2019: RUB1,334 trn)
    • without the central counterparty: RUB123 trn (2019: RUB116 trn)
  • the number of cleared trades was 1,539.8 mln (2019: 763.4 mln trades), out of which:
    • with the central counterparty: 1,533 million trades (2019: 762 million trades)
    • without the central counterparty: 6.8 million trades (2019: 1.4 million trades)
  • the commission fee received totaled RUB12 991 mln, being 1.3 times higher compared to 2019 (RUB9,489 mln), i.e.:
    • on the FX market: RUB1,682 mln (2019: RUB1,528 mln)
    • on the precious metals market: RUB2.8 mln (2019: RUB3.2 mln)
    • on the securities market RUB2,994 mln (2019: RUB2,009 mln)
    • on the money market: RUB5,880 mln (2019: RUB4,634 mln)
    • on the derivatives market RUB1,621 mln (2019: RUB1, 013 mln)
    • on the SFD market: RUB119 mln (2019: RUB185 mln)
    • on the commodity market of NAMEX: RUB4.2 mln (2019: RUB22 mln)
    • other fee based income: RUB688 mln (2019: RUB95 mln)

Abbreviations related to on-exchange markets that are used in Charts 1-4 below:

  •  FX – Foreign Exchange Market
  • PM – Precious Metals Market
  • SM – Securities Market
  • MM – Money Market
  • DM – Derivatives Market
  • SFD –standardized derivatives market
  • CM – Commodity Market of NAMEX.