Requirements for Clearing Members

CM categories:

Category "О" Clearing Member - General Clearing Member (Clearing Broker inclusively), is admitted to the clearing of partially secured trades

Category "B" Clearing Member - Individual Clearing Member, is admitted to the clearing of partially secured trades

Category "C" Clearing Member - Individual Clearing Member, is not admitted to the clearing of partially secured trades

Requirements in respect of Category "C" Clearing Members:

General requirements

Clearing membership agreement in force

agreement on integrated technical service provision, concluded with the Technical Centre, in force

to be a participant of the EDI System of the Moscow Exchange

to meet NCC requirements regarding information and reporting provision, stipulated by the Clearing Rules

Additionally for Credit Institutions
Additionally for Non-credit Institutions, which perform licensed activities on the financial Market
Additionally for Non-credit Institutions, which perform microfinance activities
Additionally for Non-resident Banks
Additionally for Clearing Members that are Non-resident Non-credit Institutions or Non-credit Institutions, which do not perform licensed activity on the financial market or microfinance activity

Requirements in respect of Category "B" Clearing Members:

in addition to requirements, set in respect of Clearing Members of the category "C":

General requirements

contribution to the Default Fund of the relevant market in the amount defined for each market

there shall be no facts showing decline in the financial statement and/or there shall be no information that gives reasons to consider decline in the financial statement of a Clearing Members possible and/or inability of a Clearing Member to fulfil its obligations under Partially Secured Trades, to pay Margin Calls and/or other obligations of a Clearing Member, arising from the Clearing Rules (this requirement does not refer to national (central) banks of EurAsEC/EAEC member states)

financial statements no less than over the last 5 (five) quarterly reporting periods shall be provided, or financial statements of a newly formed (less than 5 (five) quarterly periods) legal entity created via reorganization (except for transformation) over available reporting periods and financial statements of the predecessor over the last 5 (five) quarterly reporting periods shall be provided, or another Clearing Member that directly holds 50% or more share in a newly formed legal entity has

- international long-term credit rating in respect of obligations in Russian rubles or in foreign currency not lower than BBB- according to the rating agencies "Standard & Poor's" or "Fitch Ratings" or "Baa3" according to the rating agency "Moody's Investors Service", or

- national credit rating not lower than ААА according to the Analytical Credit Rating Agency (АCRА) or the rating agency "Expert RA"

(this requirement does not refer to national (central) banks of EurAsEC/EAEC member states)

Financial stability requirements
Additionally for Clearing Members that are Credit Institutions
Additionally for Clearing Members that are Professional market participants
Additionally for Clearing Members that are Insurance companies and Mutual insurance companies

Requirements in respect of Category "B2" Clearing Members:

in addition to requirements, set in respect of Clearing Members of the category "C":

General requirements

contribution to the Default Fund of the relevant market in the amount defined for each market

financial statements no less than over the last 5 (five) quarterly reporting periods shall be provided, or

if a newly formed legal entity has no financial statements a letter of guarantee issued by the organization that directly or indirectly holds 50% or more share in a newly formed legal entity shall be provided (in the form approved by the Clearing Centre)

Additionally for Clearing Members that are Credit Institutions
Additionally for Clearing Members that are Professional market participants
Additionally for Clearing Members that are Insurance companies and Mutual insurance companies

Requirements in respect of Category "O" Clearing Members

in addition to requirements, set in respect of Clearing Members of the categories "B" and "C":

General requirements

proprietary funds not less than 50 000 000 000 (fifty billion) Russian rubles,

proprietary funds not less than 20 000 000 000 (twenty billion) Russian rubles and

- international long-term credit rating in respect of obligations in Russian rubles or in foreign currency not lower than BB+ according to the rating agencies "Standard & Poor's" or "Fitch Ratings" or "Ba1" according to the rating agency "Moody's Investors Service", or

- national credit rating not lower than А- according to the Analytical Credit Rating Agency (АCRА) or the rating agency "Expert RA",

proprietary funds (equity) not less than 20 000 000 000 (twenty billion) Russian rubles under condition that an organization that is entitled
directly or indirectly supervise the activity of a Clearing Member, has:

- national credit rating not lower than А- according to the Analytical Credit Rating Agency (АCRА) or the rating agency "Expert RA".
valid license issued by the Bank of Russia on executing banking operations with funds in Russian rubles and foreign currencies and/or a license
on performing clearing activity (for Clearing Members - Residents).
Additionally for Clearing Members that are Non-resident Non-credit Institutions

Special requirement in respect of Clearing Members

Residence	Organization type	Organization category	Category "C"		Categories "B" and "B2"					Category "O"
Residence	Organization type	Organization category	Securities, Deposit and Credit Market	FX and Precious Metals Market	Securities, Deposit and Credit Market	FX and Precious Metals Market	Derivatives Market	Standardized OTC Derivatives markets	Commodities Market	Securities, Deposit and Credit Market	FX and Precious Metals Market	Derivatives Market
Residents	Credit Institutions	Banks and non-bank financial institutions							In the absence of financial market trading license Equity ≥ 1 bn RUB	Equity ≥ 50 bn RUB or - Equity ≥ 20 bn RUB and - External rating: S&P / Fitch ≥ BB+ or Moody's ≥ Ba1 or АCRА/ Expert RA ≥ A-*
	Non-credit Institutions	Professional securities market participants						Equity ≥ 0,3 bn RUB
	Non-credit Institutions	Investment fund managers				Not admitted
	Non-credit Institutions	Insurance companies						Equity ≥ 10 bn RUB and External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-
	Non-credit Institutions	NPF				Not admitted
	Regional authorities				External rating: S&P / Fitch ≥ BB+ or Moody's ≥ Ba1 or АCRА/ Expert RA ≥ A-
	Corporations		Equity ≥ 500 mln RUB or Clearing Member shall provide an irrevocable and unconditional guarantee issued by an entity that has External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-	Equity ≥ 500 mln RUB	Equity ≥ 10 bn RUB	Equity ≥ 50 bn RUB or - Equity ≥ 20 bn RUB and - External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-*		Equity ≥ 10 bn RUB or - Equity ≥ 20 bn RUB and - External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-* Clearing member has at least 2 (two) employees, all of which correspond to the requirements, stipulated in paragraph 4.6.3 of the Clearing Rules	Equity ≥ 0,1 bn RUB and Clearing Member shall provide a letter from an organization that is entitled directly or indirectly supervise the activity of a Clearing Member has Equity ≥ 1 bn RUB
Non-residents	Banks				Equity ≥ 10 bn RUB or - Equity ≥ 5 bn RUB and - External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3			Equity ≥ 0,3 bn RUB and External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-*
	Financial companies							Equity ≥ RUB 0.3 bn and External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-*
	Corporations		Equity ≥ RUB 500 mln or Clearing Member shall provide an irrevocable and unconditional guarantee issued by an entity that has External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-	Equity ≥ RUB 500 mln	Non EurAsEC/EAEC Clearing Member: Equity ≥ RUB 10 bn EurAsEC/EAEC Clearing Member: Equity ≥ 50 bn RUB or - Equity ≥ 10 bn RUB and - External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or - Equity ≥ 20 bn RUB and - direct state ownership - more than 50%	Equity ≥ RUB 50 bn or - Equity ≥ RUB 20 bn and - External rating: S&P / Fitch ≥ BB- or Moody's ≥ Ba3 or АCRА/ Expert RA ≥ A-*
Liquidity Providers			No admission	The Clearing Member shall send to the Clearing Centre the assurance that the purpose of admission to Clearing Service / execution of the Trades on the Exchange / OTC Markets is to maintain and increase liquidity in the instruments in one or more currencies - the Clearing Member shall have a valid special permit for operations in the financial markets issued by the competent authority of the state of registration of the Clearing Member, or have its own funds (capital) in the amount of not less than 250,000,000 (two hundred fifty million) Russian roubles.		- the Clearing Member shall be a resident of the country listed among countries approved by the Clearing Centre and disclosed on the Website of the Clearing Centre - the Clearing Member shall send to the Clearing Centre the assurance that the purpose of admission to Clearing Service / execution of the Trades on the Exchange / OTC Markets is to maintain and increase liquidity in the instruments in one or more currencies, as well as Category "B" - equity of >= RUB 50 bln - shareholders of the Clearing Member include state bodies of the country of incorporation of the Clearing Member directly controlling more than 50% (plus one share) of the Clearing Member's shares or the Clearing Member shall have the following external credit ratings: international long-term credit rating on foreign currency liabilities not lower than the sovereign rating minus one notch according to Standard & Poor's or Fitch Ratings or Moody's Investors Service, not lower than "BB-" according to Standard & Poor's or Fitch Ratings or "Ba3" according to Moody's Investors Service or a local rating agency accredited by the national regulator, or national scale rating of long-term creditworthiness for liabilities in national currency not less than minus 3 (three) notches from the highest national scale credit rating according to the classification of a local rating agency accredited by the national regulator. Category "B2": - shareholders of the Clearing Member include state bodies of the country of incorporation of the Clearing Member directly controlling more than 50% (plus one share) of the Clearing Member's shares or the Clearing Member shall have the following external credit ratings: International long-term credit rating on foreign currency liabilities not lower than the sovereign rating minus two notches according to Standard & Poor's or Fitch Ratings or Moody's Investors Service, but not lower than "B-" according to Standard & Poor's or Fitch Ratings or "B3" according to Moody's Investors Service or a local rating agency accredited by the national regulator, or national scale rating of long-term creditworthiness for liabilities in national currency not less than minus five notches from the highest national scale credit rating according to the classification of a local rating agency accredited by the national regulator.			No admission	No admission

* Clearing Member or an organization that is entitled directly or indirectly supervise the activity of a Clearing Member

Category assignment and change

Clearing Member, which is not admitted to the clearing service on the relevant market, shall submit the Application for the clearing service provision in order to receive admission.

Clearing Member, which is admitted to the clearing service on the relevant market, shall submit the Application to change category. NCC processed such Application if the following requirements are met:

there is no Margin Calls through all Settlement Accounts;
there is no unpaid Debts through all Settlement Accounts.

NCC changes category if the abovementioned requirements are met and also if there are no non-fulfilled obligations under Trades, executed by the Market Participant with the indication of the relevant Clearing Member of the category "O" as the clearing broker.

NCC is entitled to change category of the Clearing Member from "C" to "B" or "B2" without application if the Clearing Member meets the above-mentioned requirements, set for the Clearing Member of the category "B" or "B2".

NCC is entitled not to admit the Clearing Member to the clearing service on the relevant market(s):

in the absence of positive financial result or positive retained earnings as of the last reporting date;
provided the Clearing Members does not comply with the financial stability requirements;
in the case of reputation risk that can arise from clearing service provision to the Clearing Member.

Contacts

If you have any questions regarding the timing of clearing and other operations at NCC, please contact your personal manager at Moscow Exchange Group at +7 495 363 32 32.
More information about your personal manager.
For operational and testing questions, please contact our support team at +7 495 363 32 32, ext. 2345 or email help@moex.com.
For questions on improvement of clearing services, please contact the Clearing Services Promotion Department by email ps@moex.com