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At its regular meeting, the MICEX Board deemed it expedient to raise the capitalization of the National Clearing Centre (NCC) from 700 million rubles to 1.735 billion rubles. It is intended to increase the authorized capital of the NCC through an additional issue of shares in the NCC.
The meeting commissioned the MICEX Board to prepare appropriate documents for the authorized bodies of the MICEX and the NCC, which will take necessary measures to raise the capitalization of the NCC. The capitalization of the NCC will be increased at the expense of the MICEX.
According to President of the MICEX and Chairman of the Supervisory Board of the NCC Alexander Potemkin, increase in the capitalization of the NCC, being one of the key issues of the reliability of the risk management system, will secure the coverage of exchange risks associated with clearing and serve as an additional guarantee of the fulfillment of the NCC’s obligations before market participants.
Participants in the meeting noted that raising the capitalization of the NCC must ensure its normal ongoing operation as a normal a banking credit organization and provide the possibility of its further development, considering the mandatory economic standards set by the Bank of Russia.
The National Centre was established in October 2005 in the framework of the program to centralize clearing services provided for participants in trading in the exchange-based markets of the MICEX Group. Shareholders in the NCC are the MICEX (99.329% of the authorized capital) and non-profit partnership The National Depository Center (0.671%). The NCC holds the Bank of Russia’s license to carry out banking operations in Russian rubles and foreign currency.
The authorized capital of the NCC at the time of registration was 235 million rubles, its stated capital was 1.5 billion rubles. In October 2006, an extraordinary general meeting of shareholders of the NCC decided to increase the authorized capital of the NCC to 700 million rubles. In January 2007 an extraordinary general meeting of shareholders of the MICEX approved the purchase of additional shares in the NCC.
In December 10, 2007 the NCC began to carry out clearing activities in the exchange-based currency market of the MICEX. All risks associated with clearing are focused in the NCC as the central counterparty. After it had been decided to increase the authorized capital of the NCC, trade volumes in the exchange-based currency market increased 1.5 times. As a result, the issue of increasing the authorized capital of the NCC to cover risks associated with clearing became even more pressing.
