Initial Margin Operations on the Derivatives Market

Throughout the working day a Clearing Member can do the following operations with the initial margin cash funds:

1. Replenish the initial margin cash fund

For automatic credit of the cash funds to the corresponding division of the clearing register it is required to transfer cash funds to the clearing account of the CJSC"RTS Clearing Center" in the NCO "RTS Settlement Chamber" (LLC) Moscow. One should fill in the "purpose of payment" field of the payment order in accordance with the Clearing rules of CJSC RTS Clearing Center.

2. Transfer cash funds between the divisions of the clearing registers

In order to execute this transaction it is required to send an "application for cash funds transfer" through the EDC file gateway. In order to complete this operation, one should place the filled application form to the RTS_FORTS folder.

3. Transfer initial margin cash funds to the Contingency fund

If needed, the Clearing member can transfer the initial margin funds to the Contingency Fund (e.g. if the resolution on increasing the Contingency fund contribution has been taken).

In order to execute this transaction, one should submit an "Application for the initial margin cash funds transfer to the Contingency fund" to the Clearing Center via EDC file gateway. (One should place the corresponding file to the RTS_FORTS folder).

4. Initial margin cash refund

The Clearing Center returns the initial margins funds only in accordance with the references of the account that are registered by the Clearing Member in the Clearing Center. Therefore, the Clearing Member shall first register the corresponding account in the Clearing Center beforehand.

The Clearing Member can submit the initial margin cash refund order to the Clearing Center in two ways:

• Form a Statement for Cash Refund via a Trading terminal. If the refund is meant to be executed the same day, the Statement must be submitted no later than 18:00 MSK

In that case processing of the Statement will be done automatically, and the corresponding payment order will be sent to NCO "RTS Settlement Chamber" (LLC) no later than 5 minutes after that.  

• Send a Statement for Cash Refund via the EDC file gateway. If the refund is meant to be executed the same day, the Statement must be submitted no later than 17:30 MSK.

For that purpose one should place the corresponding file to the RTS_FORTS folder. One should mention that in that case the Clearing Center doesn’t guarantee prompt execution of the Clearing member’s order.

5. Transfer funds from FORTS to T+0 Market

The transfer of funds to the T+0 market is a particular case of the operation described in p.4. The General account of a T+0 market participant at the NCO "RTS Settlement Chamber" (LLC) must be indicated as the account of acceptance. The cash funds credited to the General account by a Clearing member’s order, would be transferred to the Trade Account of the NCO "RTS Settlement Chamber" (LLC) automatically.

For further information please contact Irina Antipova, CJSC RTS Clearing Center, at +7(495) 705 9031.