Financial settlements on RTS derivatives market

FORTS technology provides settlement through a special clearing account of RTS Clearing Center in the non-banking credit organization RTS Settlement Chamber. This means that Clearing members are not required to open accounts in Settlement Chamber like it is done on the markets of underlying assets.

A Clearing member or its client has the right to deposit some part of the initial margin (no more than 50% of the total amount) in a form of securities. The list of securities and restrictions on a number of securities that can be used as the Initial margin by one Clearing member are determined in accordance with the Method for selecting securities. These securities are deposited on special divisions of depo accounts of clearing members or their clients. Such accounts are open in RTS Derivatives market's Settlement Depositories (CJSC Settlement and Depository Company for Gazprom shares and CJSC Depository and Clearing Company (DCC) for other shares) on the basis of the agreements concluded between securities owners with the RTS Clearing Center. During a trading day owners of the depo accounts can increase or decrease the volume of a Clearing member’s Initial margin funds through securities.

Both Clearing members and their clients can increase the volume of Initial margin funds by transferring cash funds. In order to replenish the Initial margin funds one should transfer cash funds to the clearing account in the RTS Clearing Center while indicating a clearing register’s division, to which funds should be credited, in the field "purpose of payment" of the payment order. Cash funds can be withdrawn only by a Clearing member’s order.

There is a "single cash position" technology implemented on FORTS that allows prompt cash funds transfer from FORTS to T+0 market and back (including Gazprom shares market). It takes no more than 5 minutes to transfer cash funds between the abovementioned markets on condition the orders are processed automatically. To provide the automatic processing of the orders the following procedures are to be done:

• When transferring cash funds from FORTS to the T+0 market the refund order should be submitted through a trader’s terminal;
• When transferring cash funds from the T+0 market to FORTS the field "purpose of payment" in the payment order that is sent to the RTS Settlement Chamber by a Client-Bank system, should be filled in accordance with the RTS Clearing Center’s Clearing rules.

On receiving the order to withdraw cash funds or securities, the clearing house checks if there are enough funds on the Clearing member’s registers. If the order to withdraw cash funds is sent through the trading terminal before 6:00 pm MSK or through the RTS EDC system (electronic document circulation) before 5:30 pm MSK, the funds are withdrawn on the day when the appropriate order was sent. Otherwise cash funds would be withdrawn on the following day. Securities are withdrawn on the day when the order was sent if it was sent before 4:00 pm MSK. The clearing house withdraws funds by submitting a required order to the Settlement Chamber or Settlement Depository through electronic communication channels.