CCP default management

Clearing and settlements/

Stock market

Currency market

Derivatives market

Stock market

Currency market

Derivatives market

Independent settlement by mala fide CPs of their outstanding obligations through repo transactions in a systemic mode (30 minutes after start of the first clearing session and 15 minutes after start of the second clearing session);
Settlement of the CCP with a mala fide CP (the CCP enters into a SWAP/REPO on behalf of the mala fide CP)
Attracting necessary FI on the market (the CCP, in the “Best Orders” mode, on its own behalf submits an application to “Everyone” to close a repo transaction with a buy/sell direction. Any CP can accept the application submitted by the CCP and act as a FI donor);
Attracting the necessary FI from the CP (the CCP enters into repo transactions with the CP that has the necessary FI on its own TCA, or with a voluntary provider that has the necessary FI on the client's TCA);
Settlement of the CCP with a bona fide CP that has counterclaims with the current settlement date for the required FI (the CCP closes transactions on behalf of the bona fide CP).

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.

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.

Actual information