NCC Becomes Russia's First Qualified Central Counterparty
OREANDA-NEWS. The National Clearing Centre (NCC) was assigned the Russia”s first qualified central counterparty (CCP). The CBR made decision on 18 October to recognize the NCC”s management quality as the one meeting the requirements for credit organizations acting as CCPs, which are:
The management quality of a bank acting as a central counterparty on the Moscow Exchange is officially recognised to be in compliance with state regulative requirements and international standards.
The reduction of regulation on the NCC”s operations as a qualified CCP is a direct reflection of the international initiative to define banks” capital adequacy (Basel III).
Russian banks are now able to use reduced risk ratios required of CCPs in calculating their H1 CARs.
Banks” credit requirements to the qualified central counterparty are calculated with a 5% risk ratio instead of 20% or 100% as to other counterparties.
Russian banks are not obliged to calculate risk of a securities issuer for exchange repo deals in which the NCC acts as a central counterparty.
The NCC's attainment of qualified CCP status provides additional guarantees of Russia”s exchange infrastructure to local and foreign clients.
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