OREANDA-NEWS. November 26, 2009. Joint-stock commercial bank The National Clearing Centre (NCC), a subsidiary of the MICEX, has been admitted as a member of the European Association of Central Counterparty Clearing Houses (EACH).

The decision to admit the NCC as a member of this international association was made by the Executive Committee of EACH and is based on the conclusion that The National Clearing Centre as a clearing organization acting as a central counterparty satisfies the recommendations for central counterparties of the Technical Committee of the international organization of Securities Commissions and the risk management standards developed by EACH for central counterparties.

The admission of the National Clearing Centre, which performs the functions of the central counterparty in the on-exchange currency market of the MICEX Group, as a member of EACH demonstrates the international recognition of the achievements of the MICEX Group in developing the infrastructure of the Russian financial market and bringing it to international standards.

The NCC’s participation in the work of EACH will help the Russian financial market to adopt the advanced standards and principles of risk management, as well as the forms and methods of clearing services, thus ensuring the efficient use of participants’ funds and reliable fulfillment of their obligations in respect of transactions. Besides, the NCC’s involvement in the work of EACH will enable the NCC to maintain a direct dialogue with leading central counterparty clearing organizations of the European Union on the issues of development of business cooperation for the purpose of expanding the range of clearing services provided to clients.

The European Association of Central Counterparty Clearing Houses was established in 1991 to promote the professional discussion of a wide range of issues related to clearing and settlements, enhance the efficiency of cross-border clearing and settlement operations, develop standards for clearing and risk management and contribute to interaction with other European professional associations, such as ECSDA (European Central Securities Depositories Association) and FESE (Federation of European Securities Exchanges).

EACH is comprised of 19 clearing organizations of Europe acting as central counterparties.

The highest executive body of the Association is the Executive Committee, whose meetings are held regularly in countries that are members of the Association. EACH’s Risk Committee and its two working groups – on derivatives and transactions in securities – explore specific issues related to the improvement of clearing involving central counterparties.