6.2. 2020 Performance Report of the Supervisory Board
In 2020, the Supervisory Board carried out overall management of NCC’s activities; 20 meetings of the Supervisory Board (6 out of which were held by personal attendance) were held, at which over 100 agenda items were considered, inter alia:
Regarding the Strategic Development and Financial and Economic Activities:
- Overview of the status of coronavirus COVID-19 pandemic.
- On the approved Strategy to Develop the Risk Management Framework of Moscow Exchange Group till 2024.
- On the road map to Develop the Risk Management Framework of NCC.
- On the measures to development the SFD Market.
- On development of the Commodity Market.
- On the status of implementation of the link to the Shanghai Gold Exchange.
- On the Strategy of NCC’s Internal Audit Service.
- On the approval of NCC budget for 2021.
- On consideration of the agenda item on cyber security of Moscow Exchange Group.
In the Area of Corporate Governance:
- On approval of nominations to the position of the Chair and members of NCC Executive Board.
- On the election of the Chair and members of NCC Executive Board.
- On the functional structure of NCC Executive Board.
- On the Memorandum of Understanding between CCP NCC and Moscow Exchange.
- On the recommendations on dividend payout to NCC addressed to NCC’s sole shareholder.
- On the results of corporate governance assessment at NCC.
- On approval of the compliance of NCC’s Supervisory Board members with the independence criteria.
- On establishment of the Audit Committee of NCC Supervisory Board.
- On the election of new members of the committees of NCC Supervisory Board.
- On the election of the head of NCC Internal Audit Service.
- On the provisional approval of the 2019 Annual Report of NCC.
- On the participation of NCC’s Supervisory Board members in the Certified Director
Regarding Performance Management:
- On the results of audit by the Bank of Russia.
- On the results of assessment of the internal control framework.
- On the results of attaining of the overall corporate key performance indicators (goals) of NCC and individual key performance indicators of the Executive Board Chair and the Executive Board members of CCP NCC for 2019 reporting year and the approval of such key indicators for 2020.
- Periodic review of the management reporting on NCC’s risks, reports of the internal audit and control services, other business units responsible for the business continuity.
- On the application of the long-term motivation program based on the stock of Moscow Exchange.
- On the amount of the central counterparty’s dedicated capital.
- On ICAAP compliance results and risk management framework effectiveness at NCC in 2019.
- On consideration of the report on operational audit of NCC.
- Studying the impact of securities lending transactions on the risk appetite and limiting.
- On the approval of the Report on testing of the Recovery and Resolution Plan of NCC.
- On the report on the monitoring and assessment of NCC’s remuneration system.
Approval of NCC’s Internal Documents:
- Internal documents of CCP NCC in the area of labor remuneration.
- Techniques for measuring the dedicated capital of the central counterparty of CCP NCC.
- Techniques for assessing the accuracy of models at CCP NCC.
- Stress testing techniques of CCP NCC.
- Business Continuity and Disaster Recovery Plan of CCP NCC.
- Business Continuity Policies of CCP NCC.
- Treasury Policies of CCP NCC.
- Strategic Risk Management Policy of CCP NCC.
- Regulations on reputational risk management of Non-banking credit institution — the central counterparty National Clearing Centre (Joint-stock company).
- Rules for arrangement of the risk management framework of CCP NCC.
- Business Continuity Strategies of CCP NCC.
- Risk and Capital Management Strategies of CCP NCC and control risk appetite indices of CCP NCC for 2021.
- Requirements for executing financial instrument transactions by insiders of CCP NCC and related persons.
In 2020, the Supervisory Board’s Committees held:
- 10 meetings of the Risk Committee (9 out of which were held by personal attendance)
- 9 meetings of the Nomination and Remuneration Committee (7 out of which were held by personal attendance)
- 5 meetings of the Audit Committee (all of them were held by personal attendance)
In total, the committees considered over 90 agenda items. The recommendations on some of them were generated for the Supervisory Board.