CCP default management

• Recognition of net obligations with a certain date (with all dates) of settlements as outstanding by decision of the Management Board;
• Conclusion by the CCP of balancing purchase/sale transactions on behalf of the insolvent CP:
  • on the market;
  • with bona fide corporate entities that have counterclaims
• Covering the price difference based on results of balancing transactions through the sale by CCP of the FI on behalf of the insolvent CP constituting the pool of collateral to cover the default:
  • partial provision of insolvent corporate assets;
  • guarantee fee of the insolvent CP;
  • reserve fund;
  • guarantee fees of bona fide CPs.

• Repo transaction opening date – position transfer date;
• Duration – 1 day;
• At the penalty rate established for the instrument subject to the Methodology for determining the risk parameters of financial instruments.

A clearing participant can act as a voluntary provider on the stock market. The voluntary provider gives the CPP the right to enter into transactions on its behalf in financial instruments held on its account when rolling over positions in settlement of default. When rolling over positions, the CPP closes a repo transaction with the voluntary provider. The subject of repo is financial instruments for which net obligations have not been discharged. The term of such repo is 1 day. When closing such transactions, a decision from the investment committee of the voluntary provider is not required.

In order to be a party to a position rollover transaction, a clearing participant must become a voluntary provider by signing the attached application.

Application for assignment of a voluntary provider attribute