Clearing and settlement

Trades executed on RTS Standard (on-exchange trading mode of OJSC RTS with settlement on T+4) are cleared by Joint-stock company "RTS Clearing Center" (hereinafter – RTS Clearing Center).

RTS Clearing Center acts as the Central Counterparty to the trades executed on RTS Standard and OTC repo trades as well as trades entered into by the RTS Clearing Center in the cases described in the Clearing Rules of RTS Clearing Center (hereinafter – the Clearing Rules).

To become as a Trading Members of RTS Standard, Clearing Participants of RTS Clearing Center need to get connected to RTS Standard.

Trades are registered in sections opened in the positions register.

Market participants are required to put up collateral on their positions. Collateral amount is calculated twice a day, namely during the intraday and the evening clearing sessions, in compliance with the principles for calculation of collateral established by the RTS Clearing Center. If based on the results of the intraday or the evening clearing session the collateral falls below the sufficiency level, the Clearing Participant is obligated to pay off the debt until the next intraday or evening clearing session.

Settlement starts at 5.00 pm on T+4. Opposite homogenous obligations are netted off, and an assets availability check is performed.

Settlement documents are issued and submitted to Settlement Depositories and to the Settlement Company during the settlement clearing session (in accordance with the schedule of clearing sessions).

Clearing sessions schedule

Marking to market

During the intraday and the evening clearing sessions the Clearing Center revalues the market risks associated with the securities trades, which results in debiting and crediting of Collateral Deposits to the cash registers opened for the Clearing Participants.

All the amounts transferred as Collateral Deposits are subject to back transfer, if the secured obligations are duly satisfied on the settlement date. The procedure for calculation of Collateral Deposits is set forth is the Clearing Rules (see Article 37).

Settlement

On T+4 maturing obligations under trades and obligations to return the Collateral Deposits are included by the Clearing Center in the clearing pool of the settlement clearing session.

The number of securities to be credited to the trading securities account for delivery purposes is calculated based on the net short position registered in this trading securities account including all trades to be settled using this trading securities account.

The amount of cash to be credited to the trading cash account for performance of the obligations to pay for the delivered securities is calculated based on the net long position that is registered in the trading securities account including all trades to be settled using this trading securities account and is adjusted with regard to payable/ receivable Collateral Deposits.

Settlement accounts

For fulfillment of payment obligations as well as the obligations to register the transfer of title to securities traded on RTS Standard, cash and securities are to be credited to the trading accounts by 5.00 pm MSK on T+4.

Accounts number 30218 opened for the main accounts with the Settlement Organization – RTS Settlement Chamber (hereinafter the Settlement Chamber) –are utilized as the trading cash accounts. In the capacity of main accounts current accounts (30214 or 40701) opened in compliance with the Bank Account Agreement are used.

In order to replenish their trading cash accounts, the Clearing Participants credit cash to their main accounts with the Settlement Chamber within the timeframe specified in the Schedule of the Settlement Chamber (please see Appendix 3 to the Rulebook of the RTS Settlement Chamber). The Settlement Chamber then moves the cash from the main to the trading accounts.

At the request of the account holder cash may be withdrawn from the main trading accounts. Cash withdrawal is performed based on the appropriate payment orders submitted to the Settlement Chamber (during the entire period when client instructions are accepted including during trading sessions).

Payment orders for withdrawal of cash from the main accounts that are submitted to the Settlement Chamber are executed in the real time in the amount of the clear cash balance registered by the Clearing Center in the trading account.

Everyday after the settlement based on the trading results has been performed, the Settlement Chamber transfers all the cash from trading accounts to the relevant main accounts (nullifies the trading accounts’ balance).

On a daily basis the Settlement Chamber issues a main account statement and a list of debits and credits to the trading account for each account holder.

Trading sections of securities accounts that are meant for clearing in the RTS Clearing Center and are opened with settlement depositories – CJSC DCC or CJSC Settlement Depository Company (hereinafter SDC) – are used in the capacity of trading securities accounts. Trading securities accounts can be owned by Clearing Participants or their clients. Only Gazprom stocks can be registered in the trading securities accounts opened with CJSC SDC.

Holders of trading securities accounts opened with DCC are requested to submit depository instructions to the Clearing Center in triplicate (use the D22 form, please).

In order to replenish the trading securities accounts, the Clearing Participants (their clients) file to the Settlement Depository an instruction to credit the securities to the trading securities accounts.
On the initiative of the account holder securities may be withdrawn from the trading accounts opened with DCC. Securities withdrawal is performed based on the appropriate payment orders submitted to DCC (during the entire period when client instructions are accepted including during trading sessions).

Securities are withdrawn from the trading account only in the amount of the clear balance of securities registered by the Clearing Center in the trading account: (i) in real time, unless the number of securities specified in the payment order exceeds the initial securities balance in the account; (ii) based on the results of the next settlement and clearing session, if the number of securities specified in the payment order exceeds the initial balance of the securities.

The account holder may initiate a withdrawal of securities from the trading accounts opened with CJSC Settlement Depository Company during a trading and clearing session by submitting a relevant instruction via the Workstation of the RTS Plaza trading system (see tab Assets Withdrawal).

Withdrawal of securities from the Trading System is only possible if the clear securities balance registered in the trading account within the Trading System is sufficient as of the moment such instruction is submitted. If this condition is met, the securities will be credited to the main section of the SDC member upon the end of the settlement & clearing session.

Penalties

Penalties are debited from the cash section during the evening clearing session.
The penalty for an uncovered T+N position is calculated as per the following formula:
P=0.01 x Ps x Cx (1+n)
where:
P – stands for the penalty size;
Ps – number of securities transacted in form of a repo trade, or a trade in compliance with the Clearing Rules, if there occurs an uncovered T+N position;
C – settlement price of a security (determined based on the results of the evening settlement period of the previous trading day) that is a part of the uncovered T+N position;
n – number of non-business days as per the Russian law following the business day during which an uncovered T+N position of the Clearing Participant occurs.
For compulsory liquidation of one position a penalty of 5 (five) exchange fees is charged.

Contact information

For further information on RTS Standard, please contract the Stock Market specialists: Timur Abushkin and Maxim Ryabov at +7 (495) 705-9031.

If you are interested in the current value of the clear balance in the Trading System, or if you have any queries regarding membership, contribution to the Contingency Fund and registration of clients, please contact the Clearing Department specialists, namely Irina Antipova and Darya Babashkina at +7 (495) 705-9031.

If you have a query concerning connectivity, clearing reports and registration of accounts, please contact the Clearing Department specialists, namely Olga Krivorotova and Alla Pecherskaya at +7 (495) 705-9031.