Deposit transactions are among the Bank of Russia's market instruments, used to influence the liquidity of the banking system when implementing the money and credit policy.
In accordance with the Rules, the Bank of Russia concludes deposit transactions with banking organizations through the MICEX on auction basis (following the results of deposit auctions) or on fixed terms. When holding deposit auctions through the MICEX, the Bank of Russia attracts deposits (acts as the organizer of the auction), while banking organizations submit orders for the placement of funds on the deposit, opened with the Bank of Russia (act as participants of the auction), using the MICEX System of electronic trades.
The Bank of Russia's deposit auctions, held through the MICEX, will be auctions of participants' orders to determine interest rates on the deposit. It is intended to use both the American and the Dutch methods of holding deposit auctions.
The Bank of Russia will determine the time of concluding deposit transactions, their parameters (period of deposit, method of holding the auction, etc.) and the circle of participants of the deposit auction.
Those banking organizations, which satisfy the requirements of the Bank of Russia, are admitted to the Bank of Russia's deposit transactions. To be able to participate in deposit transactions through the MICEX, they will have to sign:
- with the Bank of Russia: a general deposit agreement on concluding deposit transactions in the RF currency, using the MICEX System of electronic trades,
- with the MICEX: an agreement on participating in the MICEX System of electronic trades to conclude deposit transactions with the Bank of Russia.
The MICEX System of electronic trades is based on the national infrastructure of the Regulated Securities Market, covering the country's 8 main financial regions. This gives a broad circle of banking organizations direct access to deposit transactions of the Bank of Russia.
Participation in the Bank of Russia's deposit transactions through the MICEX System of electronic trades gives banking organizations new technological possibilities to manage their assets, including:
- the possibility to conclude transactions to place funds on the deposit of the Bank of Russia, using the system of electronic document turnover, or through the existing trading terminals and the back-office of the MICEX System of electronic trades for transactions involving government securities, or through the MICEX Internet gateway;
- the possibility to execute deposit transactions through bank accounts, opened with the Settlement Center of the Regulated Securities Market;
- the possibility to speedily attract funds from other MICEX sectors (the government securities market, the stock and the currency markets) for the execution of deposit transactions, or use funds, received from the deposit, to purchase financial assets on the MICEX markets.
Deposit transactions will be concluded after the parties have signed proper agreements.
Find more information on the technological possibilities, offered by the MICEX system of electronic trades, and contacts on the MICEX web site www.micex.ru.
In the near future, the MICEX is going to formally offer banking organizations to join the Rules.
