CLEARING RULES FOR FX MARKET AND PRECIOUS METALS MARKET OF CJSC JSCB NATIONAL CLEARING CENTRE

Transcription

1 APPROVED BY Resolution of the Supervisory Board of CJSC JSCB National Clearing Centre dated 26 September 2014 (Minutes No. 5) Chairman of the Supervisory Board of CJSC JSCB National Clearing Centre S.P. Lykov CLEARING RULES FOR FX MARKET AND PRECIOUS METALS MARKET OF CJSC JSCB NATIONAL CLEARING CENTRE Moscow, 2014

2 CONTENTS SECTION I. Article 1. Article 2. Article 3. Article 4. Article 5. Article 6. SECTION II. GENERAL PROVISIONS 4 Terms and definitions 4 General Provisions...10 Rights and obligations of the Clearing Members and the Clearing Centre.13 Confidentiality.14 Procedure for use of the Equivalent Handwritten Signature...14 Clearing Registers REQUIREMENTS FOR THE CLEARING MEMBERS Article 7. Requirements to the Clearing Members..17 Article 8. Categories of the Clearing Members...18 Article 9. Conditions of Clearing Service. Procedure for admission to Clearing Service...19 Article 10. Procedure for registration of the Clearing Members and assignment to the Clearing Members of the Settlement Codes and Clearing Identifiers..23 Article 11. Procedure for suspension and cessation of admission to Clearing Service.26 SECTION III. Article 12. Article 13. Article 14. SECTION III. CLEARING RISK MANAGEMENT MEASURES.31 Clearing Risk Management Measures.31 Single Limit and Risk Parameters...32 Procedure for submission and fulfillment of the Risk Management Orders..35 SECTION IV. PROCEDURE AND TERMS OF ACCEPTANCE OF OBLIGATIONS FOR CLEARING.36 Article 15. Procedure for interaction with the Exchange during placement of orders and execution of the Trades.36 SECTION V. CLEARING PROCEDURE 40 SUBSECTION V-I COLLATERAL DEPOSIT AND REFUND PROCEDURE AND CONTRIBUTION TO THE GUARANTEE FUND 40 Article 16. Collateral deposit procedure 40 Article 17. Collateral refund procedure.41 Article 18. Procedure for making of the contribution to the Guarantee fund and the Collateral for Stress...44 Article 19. The contribution to the Guarantee fund and the Collateral for Stress refund procedure.44 2

3 SUBSECTION V-II CLEARING SESSIONS.45 Article 20. Procedure for holding of the clearing sessions 45 Article 21. Variation margin and Collateral Deposits...47 Article 22. Procedure for performance / cessation of the Trade Obligations and the obligations to refund Collateral Deposit...51 Article 23. Procedure for settlement of cases of non-performance or improper performance by the Clearing Members of the Trade Obligations and the Margin Calls...56 Article 24. Procedure for use and reimbursement for the guarantee funds and other means for purposes of repayment of Debts of the Clearing Members 64 SECTION VI. SERVICE PAYMENT PROCEDURE. REPORTS ON CLEARING RESULTS 69 Article 25. Procedure for payment for services of the Clearing Centre, the Exchange, and the Technical Centre.69 Article 26. Procedure for submission of reports on clearing results..73 SECTION VII. OTHER TERMS AND CONDITIONS..75 Article 27. Transfer of obligations and collateral from one Clearing Member to another Clearing Member..75 Article 28. The order of the Clearing Member s inclusion in the list of organizations, which have been noticed to be related to the extremist activities or terrorism 78 Article 29. Procedure for settlement of the obligations in case of cessation of admission to Clearing Service 79 Article 30. Interaction with the Exchange in any circumstances that can affect trading..91 Article 31. Emergencies.91 Article 32. Dispute settlement procedure..93 Appendix Appendix Appendix 3 99 Appendix Appendix

4 SECTION I. GENERAL PROVISIONS These Clearing Rules for FX Market and Precious Metals Market of CJSC JSCB National Clearing Centre regulate any relations associated with settlement of the trades in FX and precious metals executed during the trading organized by OJSC Moscow Exchange. In case of changes to these Clearing Rules, including the adoption of the Clearing Rules in the new wording, the relevant changes from the day of coming into effect apply to the relations under the above trades executed prior to the enactment of relevant changes (new wording), and not fulfilled (terminated) by the day of entry into force of the amendments to the Clearing Rules. Article 1. Equivalent Handwritten Signature / EHS - FATCA form- Authentication - EurAsEC Bank - Non-Resident Bank - Exchange - Exchange Certificate - Time Regulations Terms and definitions details of any electronic message sent using the Clearing System that identify a sender of such message, integrity and invariability of electronic messages based on the use of specialized hardware and software and organizational measures. The Equivalent Handwritten Signature is a Clearing Identifier that enables to explicitly identify the Clearing Member or the Clearing Centre sending the electronic message and reliably determine that it belongs to the Clearing Member or the Clearing Centre with such Clearing Identifier. a form of identification of a legal entity in accordance with the regulations and the clauses of the rule of FATCA. a procedure used to confirm that the EHS belongs to the Clearing Member / Clearing Centre. a Non-Resident Bank registered in the Member State of the Eurasian Economic Community which has signed a Cooperation Agreement in the field of organization of an integrated currency market of the member states of the Eurasian Economic Community (hereinafter the International Treaty), which, in accordance with the International Treaty is entitled to conduct interbank conversion operations in the Russian Federation. a legal entity which is a Non-Resident, which, by virtue of a special permit (license or other document) issued by the competent authority of its registration country is authorized to conduct banking operations stipulated by the domicile law of the Non-Resident Bank. a trade organizer rendering services for organization of trading in foreign currency and precious metals pursuant to the Trading Rules. The Exchange is the Open Joint-Stock Company Moscow Exchange MICEX-RTS. a document provided by the Clearing Centre to the Clearing Member, which contains information on the Total Net Obligations and/or the Total Net Claims, and the obligation / claim of the Clearing Member regarding repayment of Collateral Deposits. an internal document of the Clearing Centre, which establishes the deadline for the fulfillment of obligations, determined in the Clearing Rules, and also the terms of clearing operations, terms of documents submission to the Clearing Centre/ by the Clearing Centre during 4

5 Collateral Deposit - Guarantee fund- State Corporation - Settlement Date - Non-Defaulting Clearing Member - Cooperation Agreement - Additional session - Single Limit - interaction with Clearing Members during clearing and settlement of Trades. a collateral of the Clearing Member or the Clearing Centre calculated in accordance with the procedure stipulated in the Clearing Rules and constituting the guarantee of performance of the obligations under the Trades executed between that Clearing Member and the Clearing Centre. a collective clearing collateral, formed by the Clearing Centre out of contributions of the Clearing Members, established by the Clearing Rules, for the purpose of performance of its obligations under the Trades. a state corporation which, in compliance with the effective legislation of the Russian Federation, has the right to carry out banking operations in the Russian Federation, including foreign currency purchase and sale. a date on which the Trade Obligations shall be performed in conformity with the terms of the Trade. a Clearing Member that properly performs its Total Net Obligations to the Clearing Centre. an Agreement of Cooperation at the Trading and Additional Sessions of the Unified Trading Session concluded between the Bank of Russia, the Exchange, and the Clearing Centre. a period of time, during which the Trades are executed between the Clearing Member and the Clearing Centre for the purpose of settlement of cases of default on obligations or improper performance of obligations under the Trades by the Clearing Member and for other purposes, established by the Clearing Rules. a value calculated by the Clearing Centre in Russian roubles for each Clearing Member and limiting any market risks associated with the Trades executed between the Clearing Centre and the Clearing Member for which such Single Limit is calculated. Debt - outstanding obligations of the Clearing Member, including obligations under the Trades, obligations to pay commission fees, obligations to pay variation margin, obligations to pay the Collateral Deposits and/or other obligations specified in the Clearing Rules. Law on Clearing - Federal Law No.7-FZ of 07 February 2011 On Clearing and Clearing Activities. Law on FATCA- Federal Law No. 173-FZ of 28 June, 2014 On Specifics of Conducting Financial Transactions with Foreign Nationals and Legal Entities, on Amendments to the Russian Administrative Offences Code and Invalidation of Certain Provisions of Russian Legislative Acts. Identifier (Identifier of the Clearing Member) - Individual Clearing a unique alphanumeric code, which is assigned by the Clearing Centre to the Clearing Member, serving as a unique identification of the Clearing Member. the Clearing Member, also acting as a trading participant and 5

6 Member - Total Net Obligation of the Clearing Member - Total Net Claim of the Clearing Member - Client - Clearing with full collateral - Clearing with partial collateral - Clearing System - Clearing Broker - Clearing Identifier of the Clearing Member (Clearing Identifier) - Clearing Centre - Credit Organization - Margin Call - Margin Call on Collateral for Stress - Margin Call on Funds- International Organization - executing the Trades only on his own behalf. obligations of the Clearing Member to the Clearing Centre in relevant currency or precious metal, not terminated by set-off during clearing in accordance with the Clearing Rules. claims of the Clearing Member against the Clearing Centre in relevant currency or precious metal, not terminated by set-off during clearing in accordance with the Clearing Rules. a legal entity or individual registered by the Exchange as a client of the Trading Participant. clearing of the Trade, which is conditioned on the presence of the Clearing Member s Collateral and/or claim of the Clearing Member for receipt of foreign currency / Russian roubles / precious metal with the Settlement Date of no later than the date of fulfillment of obligations under the executed trade, in the amount necessary to fulfill obligations under such Trade in full. clearing under the Trade, which is conditioned upon sufficiency of the Single Limit of the Clearing Member. a subsystem of the software and hardware complex of the Technical Centre that is a set of software and hardware tools, databases, telecommunication facilities, other equipment and software used by the Clearing Centre to perform clearing. the Clearing Member performing the functions of the clearing broker in accordance with the Law on Clearing and the Clearing Rules. - a unique alphanumeric code, which is assigned by the Clearing Centre to the Clearing Member for the purpose of execution of operations in the Clearing System. CJSC JSCB National Clearing Centre acting under the clearing license and in compliance with the Law on Clearing. a Credit Organization which is a Resident. a requirement of the Clearing Centre to the Clearing Member to post collateral for the obligations under the Trades executed by the Clearing Centre with the Clearing Member submitted in accordance with the procedure and in the cases determined in the Clearing Rules. a requirement to bring the amount, contributed by the Clearing Member as a Collateral for Stress, into compliance with the amount of the Collateral for Stress, established for the Clearing Member by the Clearing Centre. a requirement to bring contributions of the Clearing Members to guarantee funds into compliance with the amounts of contribution to the guarantee funds as established by the Clearing Centre. a legal entity established in accordance with the International Treaty of the Russian Federation with the right to conduct banking operations, including currency operations, in the Russian Federation in accordance with the International Treaties of the Russian Federation and the legislation of the Russian Federation. 6

7 Methods of Determination of The Amount of the Collateral for Stress - an internal document of the Clearing Centre, which establishes the procedure for determination of the amount of the Collateral for Stress of the Clearing Members. Methods of Determination of FX Market and Precious Metals Market Risk Parameters - Defaulting Clearing Member - Non-Credit Organization - Non-Resident Non-Credit Organization - Non-Resident - Net Obligation of the Clearing Member - Net Claim of the Clearing Member - Collateral - an internal document of the Clearing Centre, which establishes the procedure for determination of Risk Parameters of the FX Market and Precious Metals Market of OJSC Moscow Exchange and price parameters of swap trades executed at the Additional Sessions. a Clearing Member that failed to perform or improperly performed its Total Net Obligations and/or Margin Call and/or that has an outstanding Debt to the Clearing Centre. a legal entity which is a resident and is not a Credit Organization. a legal entity which is a Non-Resident and has no right to conduct banking operations. a person which is a non-resident in accordance with the legislation of the Russian Federation on currency regulation and currency control. amount of cash in relevant currency / amount of the relevant precious metal, constituting an excess of obligations of the Clearing Member in this currency / in this precious metal under the Trades over its claims against the Clearing Centre in this currency / in this precious metal under the Trades, as determined for each Settlement Date. amount of cash in relevant currency / amount of the relevant precious metal, constituting an excess of claims of the Clearing Member in this currency / in this precious metal under the Trades over its obligations to the Clearing Centre in this currency / in this precious metal under the Trades, as determined for each Settlement Date. individual clearing collateral of the Clearing Member in Russian roubles (Collateral of the Clearing Member in Russian roubles) and/or cash of the Clearing Member in foreign currency and/or precious metals of the Clearing Member (Collateral of the Clearing Member in foreign currency and/or precious metals), which are used to secure performance of obligations of the Clearing Member under the Trades. Collateral is used to perform obligations of the Clearing Member under the Trades, and other obligations of the Clearing Member, specified in the Clearing Rules. Collateral for Stress - individual clearing collateral of the Clearing Members, established by the Clearing Rules, in Russian roubles and/or in foreign currency and/or securities, used for ensuring the performance of the Clearing Member s obligations under the Trades. General Clearing Member - a Clearing Member, entitled to act as a Clearing Broker. Password - NCC EDM Subsystem - a sequence used for authentication of the Clearing Member or the Clearing Centre. a Subsystem of the Electronic Document Management System of OJSC Moscow Exchange (hereinafter referred to as the EDMS of OJSC Moscow Exchange) the organizer of which is the Clearing 7

8 Procedure for Presentation of Information and Reports - EDC Regulations - Trading Rules - Clearing Rules - Securities Market Clearing Rules- Derivatives Market Clearing Rules - Business Day - Centre and which is used by the Clearing Centre to interact with the NCC EDM Subsystem members and the EDMS Organizer. The NCC EDM Subsystem is a totality of software, information and hardware of the Clearing Centre, the EDMS Organizer, and the NCC EDM Subsystem members. an internal document of the Clearing Centre that specifies composition, terms, and forms of presentation of information and reports by the Clearing Members to the Clearing Centre. Regulations for the Electronic Documents Management of CJSC JSCB National Clearing Centre effective Rules of Organized Trading at OJSC Moscow Exchange for the FX market and precious metals market. these Clearing Rules for FX Market and Precious Metals Market of CJSC JSCB National Clearing Centre. effective Clearing Rules of CJSC JSCB National Clearing Centre for the securities market. current Clearing Rules of CJSC JSCB National Clearing Centre for the derivatives market. a day, including a day off or a public holiday, when the Exchange holds trading in foreign currencies and/or precious metals. Settlement Organization - NCO CJSC NSD and/or Bank of Russia, where the Clearing Centre has opened the clearing bank account to record the Collateral in Russian roubles and/or the clearing bank account to record the collective clearing collateral. Settlement Price - price used to calculate the variation margin under the swap contract / futures contract, determined in accordance with the Clearing Rules. Settlement Bank - a bank or a non-bank Credit Organization, including a foreign Credit Organization, where the Clearing Centre opened the correspondent account to record the Collateral in foreign currency. Settlement Day - a day which is a Business Day and also a business day in the country of foreign currency issue, and a day, including a day off or a public holiday under the legislation of the Russian Federation, when the Settlement Organization makes settlement. The day when the Exchange does not conduct trading for any instrument in such currency / precious metal with the Obligations Settlement Date falling onto the trading day does not constitute the Operating Day. Settlement Code- a sector of analytical accounting in the internal accounting of the Clearing Centre. The settlement code value corresponds to the last five digits in the account numbers, opened for the Clearing Member in the accounting of the Clearing Centre. Resident - a legal entity which is a resident in accordance with the RF legislation on currency regulation and currency control. Website of the Clearing Centre - Trade - a website where the Clearing Centre places its information. each of the trades in foreign currency / precious metal executed at the 8

9 Client Clearing Bank System - Refund Account - Collateral Account - Technical Centre - Trading Limit - Authorized Trading Participant of the Clearing- Clearing Member - trading at the Exchange, including the spot transaction, swap transaction, swap contract, or futures contract. an automated remote banking and clearing service system designed to perform electronic document interchange between the Clearing Members and the Clearing Centre. an account registered in the Clearing Centre and intended for receipt of cash in relevant currency / the relevant precious metals in order to perform the obligations of the Clearing Centre in respect of refunding of cash / precious metals to the Clearing Member. The Account for Cash Refund is entitled to be the account of the Clearing Member / Client of the Clearing Member opened with the bank in the Russian Federation or in the bank outside the Russian Federation. The Account for Refund of precious metals is entitled to be the numbered metal account opened in the Clearing Centre by the Clearing Member bank having a license to attract and invest deposits in precious metals, or the numbered metal account of the Clearing Member in the bank which opened in the Clearing Centre the numbered metal account and has a license to attract and invest deposits in precious metals. numbered metal account of the Clearing Member, opened in the Clearing Centre and intended to record the Collateral of the Clearing Member in the relevant precious metal. Open Joint-Stock Company Moscow Exchange MICEX-RTS that provides the Clearing Members with technical access to the Clearing System under the relevant agreement. an amount (in Russian roubles) limiting the funds of the Clearing Member taken into account in calculation of the Single Limit of the Clearing Member; it is determined upon request of the Clearing Member or by resolution of the Clearing Centre in the cases and in accordance with the procedure stipulated in the Clearing Rules. the Clearing Member providing cash to the Clearing Centre by executing between itself and the Clearing Centre the swap trades in accordance with the Clearing Rules for the purpose of performance by the Clearing Centre of its obligations under the Trades to the Non- Defaulting Clearing Members, and for the purpose of performance by the Clearing Centre of its obligations at other markets where the Clearing Centre performs functions of a clearing organization and/or central counterparty. a legal entity to which the Clearing Centre renders clearing services under the Clearing Agreement concluded with the former. 9

10 Any term not expressly defined in these Clearing Rules shall have the meaning determined by other internal documents of the Clearing Centre, including the Derivatives Market Clearing Rules, the Securities Market Clearing Rules, Methodology for Determination of Risk Parameters of the FX Market and Precious Metals Market, internal documents of the Exchange, Trading Rules, Specifications, laws, regulatory acts of the Bank of Russia in the financial markets field, and other regulatory legal acts of the Russian Federation. Article 2. General Provisions 2.1. The Clearing Centre performs clearing acting as a central counterparty for all Trades where under the party is a Clearing Member The Clearing Centre performs clearing with partial collateral and clearing with full collateral The Clearing Centre is entitled to issue resolution on performance of clearing solely with full collateral for certain instruments The Clearing Centre performs clearing with partial collateral under the Trades executed by the Category «O» and «B» Clearing Members for the instruments in whose respect the Clearing Centre did not issue resolution on performance solely of the clearing with full collateral The Clearing Centre performs clearing with full collateral for the lot currency and mated currency: under the Trades executed by the Category «C» Clearing Members; under the Trades executed by the Category «O» and «B» Clearing Members for the instruments in whose respect the Clearing Centre issued resolution on performance solely of the clearing with full collateral The Clearing Centre is entitled to set for a certain foreign currency / precious metal the attribute "Ban on Short Selling". Setting of the attribute "Ban on Short Selling" means that under the Trades with such foreign currency / precious metal only clearing with full collateral for such foreign currency / precious metal is performed To ensure performance of the obligations accepted for clearing, the Clearing Centre shall use the Collateral of the Clearing Members, the Collateral for Stress of the Clearing Members, Guarantee Fund The Collateral of the Clearing Member in foreign currency and/or precious metals is the property transferred by the Clearing Member to the Clearing Centre to ensure performance of the Trade Obligations of the Clearing Member to the Clearing Centre in accordance with the Clearing Rules, to perform the obligations of the Clearing Member to the Clearing Centre under the Trades, and to ensure performance of the Net Obligations of the Clearing Member in accordance with the procedure and in the cases stipulated in Article 27 hereof. 10

11 2.9. The Collateral of the Clearing Members in Russian roubles shall be kept on the clearing bank account of the Clearing Centre opened with the Settlement Organization and designed to record the Collateral of the Clearing Members The Collateral of the Clearing Members in foreign currency shall be kept on the correspondent accounts of the Clearing Centre opened with the Settlement Banks Collateral of the Clearing Member in precious metals is recorded at the Collateral Accounts of the Clearing Members The collective Clearing Collateral (Guarantee fund) in Russian roubles or foreign currency shall be kept on the clearing bank account of the Clearing Center in appropriate currency, opened with the Settlement Organization and designed to record the collective Clearing Collateral (guarantee funds) The collective Clearing Collateral (Guarantee fund) in securities shall be kept on the clearing depositary account of the Clearing Centre opened with the Settlement Depositary and designed to record the collective Clearing Collateral (guarantee funds) The Collateral for Stress of the Clearing Members in Russian roubles or the foreign currency shall be kept on the clearing bank account of the Clearing Centre in appropriate currency, opened with the Settlement Organization and designed for the Collateral for Stress accounting The Collateral for Stress in securities shall be kept on the clearing depositary account of the Clearing Centre opened with the Settlement Depository and designed for the Collateral for Stress accounting Registration of obligations and Collateral of the Clearing Member in precious metals is performed in grams The information on the details of clearing accounts of the Clearing Centre designed to record the individual or collective Clearing Collateral and the details of correspondent accounts of the Clearing Centre opened with the Settlement Banks and designed to record the Collateral in foreign currency shall be placed on the Website of the Clearing Centre. The Clearing Centre shall notify the Clearing Members of any changes in the details of such accounts by sending new details in form of electronic document and by placing relevant information on the Website of the Clearing Centre not later than 3 (three) business days prior to putting those changes into effect, if other time period for notification about the change of details of the specified accounts has not been set by resolution of the Clearing Centre Accounting of the individual clearing collateral or another collateral, contributed by the Clearing Members, is a service, rendered by the Clearing Center to the Clearing Member within the clearing activities carried out by the Clearing Centre The Clearing Centre shall be entitled to use for its own benefit any funds constituting individual and collective Clearing Collateral and the Collateral of the Clearing Members in foreign currency, subject to the limitations stipulated in the internal document of the 11

12 Clearing Centre that determines the criteria for allocation of temporarily available cash of the Clearing Centre. Any profit from such use of the funds constituting individual and collective Clearing Collateral and the Collateral of the Clearing Members in foreign currency shall not be included in the individual and collective Clearing Collateral Electronic documents shall be exchanged between the Clearing Member and the Clearing Centre via the EDM NCC Subsystem and/or the Client Clearing Bank System and/or SWIFT System (in the cases stipulated in the Clearing Rules) The procedure for drawing up and sending electronic documents via the EDM NCC Subsystem is provided by the EDM Procedure and the Agreement on Exchange of Electronic Documents concluded between the Clearing Member and the Clearing Centre The procedure for drawing up and sending electronic documents via the Client Clearing Bank System is provided by the Agreement of Participation in the Client Clearing Bank System of CJSC JSCB National Clearing Centre concluded between the Clearing Member and the Clearing Centre The electronic documents sent via the NCC EDM Subsystem shall be drawn up in the format determined in accordance with the EDM Procedure The electronic documents sent via the Client Clearing Bank System shall be only drawn up by means of the Client Clearing Bank System in the format supported by the software of the Client Clearing Bank System The electronic documents sent via SWIFT System shall be drawn up in the formats determined by SWIFT standards subject to any features stipulated in internal documents of the Clearing Centre In case of any discrepancies in the information contained in the electronic document sent via the EDM NCC Subsystem, the electronic document sent via the Client Clearing Bank System, and the electronic document sent via SWIFT System, the Clearing Member and the Clearing Centre shall be primarily guided by the information contained in the electronic document sent via the EDM NCC Subsystem, secondly via the Client Clearing Bank System, and thirdly via SWIFT System The documents sent by the Clearing Member to the Clearing Centre via the Clearing System constitute electronic messages signed with the EHS of the Clearing Member. The documents and the information received by the Clearing Member from the Clearing System constitute electronic messages signed with the EHS of the Clearing Centre. The procedure for use of the EHS is determined in Article 5 hereof Forms and formats of the documents submitted by the Clearing Members to the Clearing Centre in accordance with the Clearing Rules and the manner of the document submission are stipulated in the document Forms and formats of the documents submitted by the Clearing Members in accordance with the Clearing Rules for FX Market and Precious Metals Market of CJSC JSCB National Clearing Centre, unless otherwise established by the Clearing Rules. The mentioned document is placed on the Website of the Clearing Centre The Clearing Centre interacts with the Exchange in accordance with the concluded agreement, determining the procedure and terms of cooperation in case of organization 12

13 by the Exchange of the trading in foreign currency and precious metals, and also in case of performance by the Clearing Centre of the clearing and other functions, associated with performance of clearing under the Trades executed during trading at the Exchange. Article 3. Rights and obligations of the Clearing Members and the Clearing Centre 3.1. The rights and obligations of the Clearing Members and the Clearing Centre are stipulated in the Clearing Agreement and the Clearing Rules of the Clearing Centre The form of the Clearing Agreement is determined by Appendix 1 hereto The Clearing Agreement shall be concluded by accession to the agreement terms and conditions of which are stipulated in the Clearing Rules of the Clearing Centre The payment for clearing services rendered by the Clearing Centre to the Clearing Members in compliance with the Clearing Rules is fixed by the FX Market and Precious Metals Market Rate Schedule of the Clearing Centre that are Appendix 2 hereto (hereinafter referred to as Tariffs of the Clearing Centre) The procedure for payment for clearing services of the Clearing Centre is determined in Article 25 hereof Clearing services of the Clearing Centre shall be deemed duly rendered if, within 5 (five) business days after the end of the month during which such services were rendered, the Clearing Member does not notify in writing of the opposite The Clearing Member shall be entitled to cancel the Clearing Agreement if only it does not have any liabilities under such Agreement and outstanding obligations accepted for clearing notifying the Clearing Centre in writing not later than 5 (five) days prior to the date of termination of the Clearing Agreement The Clearing Centre shall be entitled to cancel the Clearing Agreement concluded with the Clearing Member in case of breach by the Clearing Member of any requirements imposed on it by the Clearing Rules of the Clearing Centre The Clearing Centre shall be entitled to cancel the Clearing Agreement concluded with the Clearing Member if, within 6 (six) months from the date of conclusion of such Agreement, the Clearing Member did not receive admission to Clearing Service, or, within 6 (six) months in a row, the Clearing Member did not have admission to Clearing Service under no Clearing Rules of the Clearing Centre due to suspension / cancellation / non-receipt of admission to Clearing Service The Clearing Agreement shall be terminated in the following cases: 1) cancellation of admission of the Clearing Member to Clearing Service in conformity with all Clearing Rules of the Clearing Centre under which the Clearing Member was accepted for clearing Service; 2) liquidation of the Clearing Member and reorganization of the Clearing Member, provided that its activities are ceased following such reorganization; 3) revocation of the license of the Clearing Member for banking operations (for Credit 13

14 Organizations); 4) revocation (cancellation) of the special permission (license or other document) issued by the Central (National) Bank or other competent authority of the Non- Resident Bank s country that, in accordance with the legislation of the Non- Resident Bank s country, performs currency regulation and bank supervision (hereinafter referred to as the Competent body) under which the Non-Resident Bank shall have the right to carry out banking operations contemplated by the personal law of the Non-Resident Bank (for Non-Resident Banks, including EurAsEC Banks) Termination of the Clearing Agreement shall not exempt the Clearing Member and the Clearing Centre from performance of the obligations occurring prior to termination of the Clearing Agreement For the Clearing Member - Non-Resident Bank, International Organization or for individual Category of legal entities, the applicable law regulating the Clearing Agreement and relevant relations of the Clearing Member and the Clearing Centre shall be the legislation of the Russian Federation. Article 4. Confidentiality 4.1. The Clearing Member and the Clearing Centre shall be obliged to treat the content of the Clearing Agreement and the terms of the executed Trades as confidential information and shall not disclose it to any third parties (except for the auditors of the Clearing Member and the Clearing Centre, authorized public bodies, the Trading Participants executing such Trades, and their Clients for whose benefit such Trades are executed, and cases of information disclosure in compliance with the effective legislation of the Russian Federation) unless otherwise specifically agreed upon between the Clearing Member and the Clearing Centre Any documents submitted and prepared by the Clearing Member and/or the Clearing Centre for performance of the Clearing Agreement and the Trades executed as part of the Clearing Agreement shall be treated as confidential The Clearing Members agree that the Clearing Centre, under the Cooperation Agreement, provides the Bank of Russia upon its request with the information on clearing process and results. Article 5. Procedure for use of the Equivalent Handwritten Signature 5.1. The Equivalent Handwritten Signature shall be used to send via the Clearing System the electronic messages stipulated by the Clearing Rules. The electronic message signed with the EHS shall be considered the electronic document equivalent to any hard-copy document signed by the authorized representative of the Clearing Member / Clearing Centre The Clearing Centre shall ensure safety and integrity of any electronic messages of the Clearing Member and the Clearing Centre after applying several organizational and technical measures. 14

15 5.3. Any electronic message shall be deemed signed with the EHS from the moment of sending by the Clearing Member / Clearing Centre to the Clearing System of such electronic message under condition of successful authentication of the Clearing Member / Clearing Centre as stipulated in this Section The Clearing Identifier shall be assigned to the Clearing Member or the Clearing Centre by the Clearing Centre. The procedure for assignment of the Clearing Identifier to the Clearing Member is stipulated in clause hereof. Inclusion of the information on the Clearing Identifier of the Clearing Member in the daily Report of Clearing Identifiers shall be deemed the notification of assignment of the Clearing Identifier to the Clearing Member. The data on any assigned Clearing Identifiers shall be deemed confidential. The Clearing Member and the Clearing Centre shall ensure observance of confidentiality requirements and bear the risk of any consequences related to violation of such requirements Authentication shall be conducted by the Technical Centre via the Clearing System with technical access of the Clearing Member or the Clearing Centre to the Clearing System using the remote working place of the Clearing Member or the Clearing Centre by comparing the entered Clearing Identifier and password with the relevant Clearing Identifier and password of the Clearing Member / Clearing Centre the information on which contains in the Clearing System database. In case of successful authentication, the Clearing Member / Clearing Centre shall be allowed to carry out operations in the Clearing System Upon sending any electronic messages signed with the EHS, the Technical Centre via the Clearing System shall identify a person signing the electronic message by comparing the EHS contained in the electronic message with the Clearing Identifier assigned to the Clearing Member / Clearing Centre the information on which contains in the Clearing System database The Clearing Member and the Clearing Centre shall agree that the Clearing Centre can make hard copies of the electronic messages signed with the EHS which shall be certified by signature of the authorized representative of the Clearing Centre and be indisputable evidence of sending the electronic message via the Clearing System, and shall confirm compliance of the electronic message with the content of the hard copy of such electronic message Upon written request of the Clearing Member, the Clearing Centre shall provide the Clearing Member with a hard copy of any electronic message sent by (to) the Clearing Member. The request of the Clearing Member shall contain a date of sending electronic messages or a period of time within which such electronic messages are sent The Clearing Member and the Clearing Centre shall agree that all disputes regarding use of the EHS shall try to settle out of court. 15

16 5.10. In case of any disputes regarding use of the EHS, the technical expertise shall be conducted in conformity with Appendix 3 hereto If following such technical expertise conducted in conformity with Appendix 3 hereto any dispute cannot be settled, such dispute shall be subject to examination as stipulated in Article 32 hereof. Article 6. Clearing Registers 6.1. The Clearing Centre shall perform internal recording provided for by the Law on Clearing in clearing registers. The Clearing Registers shall be kept by the Clearing Centre in the Clearing System In the Clearing Registers the Clearing Centre shall record: the Single Limit of each Clearing Member; the Trading Limit of each Clearing Member for which the stipulated Trading Limit is fixed; the liabilities and the claims of the Clearing Member on each Trade Obligation accepted for clearing; totality of Risk Management Orders; obligations of the Clearing Members and the Clearing Centre for payment of variation margin / Collateral Deposits; the obligations of the Clearing Members and the Clearing Centre regarding refund of the Collateral Deposits; the Net Obligation / Net Claim of the Clearing Member on each Settlement Date in each currency and each precious metal; the Total Net Obligation / Total Net Claim of the Clearing Member in each currency and each precious metal; the Collateral of the Clearing Member in each currency and each precious metal; the Margin Call of the Clearing Member (if any). Such recording shall be performed by the Clearing Centre in terms of Settlement Codes of the Clearing Member For each Clearing Member the Clearing Centre shall also record the monetary funds and/or securities, contributed by the Clearing Member as a contribution to the Guarantee Fund and as the Collateral for Stress The procedure for keeping the Clearing Registers is determined in the relevant Articles of Sections IV and V hereof. 16

17 SECTION II. REQUIREMENTS FOR THE CLEARING MEMBERS Article 7. Requirements to the Clearing Members 7.1. For conclusion of the Clearing Agreement the legal entity shall submit to the Clearing Centre: the Clearing Agreement in the form stipulated in Appendix 1 hereto in 2 (two) copies signed and sealed by the authorized representative of the legal entity; the documents in accordance with the list stated in Appendix 4 hereto. If any of the documents stated in Appendix 4 hereto was submitted to the Clearing Centre before and is available for the Clearing Centre, the legal entity, upon prior agreement with the Clearing Centre, can be exempted from the obligation to resubmit such document The legal entity shall be obliged to submit other documents that, if necessary, is entitled to be requested by the Clearing Centre for the purposes not contradictory to the effective legislation of the Russian Federation In order to obtain information about the legal entity, the Clearing Centre is entitled to use any data (information) about the legal entity from official sources, including electronic service of the Federal Tax Service If the legal entity and the Clearing Centre have already concluded the Clearing Agreement in the form stipulated in Appendix 1 hereto to perform Clearing Service in compliance with the other Clearing Rules of the Clearing Centre, conclusion of the new Clearing Agreement in compliance with these Clearing Rules is not required The Clearing Member shall be obliged to annually present to the Clearing Centre the Questionnaire of the Clearing Member (Client) (Registration Card) in form of electronic document. In case of change in the data contained in the Questionnaire of the Clearing Member (Client) (Registration Card) or other documents submitted to the Clearing Centre, the Clearing Member shall be obliged within 5 (five) business days after such changes to present to the Clearing Centre the Questionnaire of the Clearing Member (Client) (Registration Card), containing updated information, in form of electronic document, and the relevant documents confirming such changes. The forms of submission of the Questionnaire of the Clearing Member (Client) (Registration Card) by the Clearing Member are determined in accordance with the procedure for Presentation of Information and Reports Concurrently with annual submission to the Clearing Centre of the Questionnaire of the Clearing Member (client) (Registration Card), the Clearing Member, with exception of the Category «A» Clearing Member, shall furnish the Clearing Centre with the Comments on business reputation certified with signatures of the authorized representatives of persons, who issued them. The Clearing Member presents the Comments on business reputation from other Clearing Members of the Clearing Centre, having business relations with the latter, and (or) Comments on business reputation from Credit Organizations, which are or were 17

18 previously providing services to the Clearing Member. The lists of the Clearing Members are disclosed on the website of the Clearing Centre. In case of impossibility to obtain comments on business reputation, the Clearing Member submits to the Clearing Centre a letter informing of such impossibility To confirm its financial position, the Clearing Members, with the exception of the Category «A» Clearing Members, shall be obliged within the entire term of the Clearing Agreement to submit to the Clearing Centre the reports in conformity with Appendix 5 hereto. To estimate financial position of the Clearing Member, the Clearing Centre shall be entitled to require from the Clearing Member any additional information and reports not stated in Appendix 5 hereto The Clearing Member submits the FATCA form to the Clearing Centre as an electronic document, and other attached documents and data submitted for the FATCA purposes, necessity of submission of which is resulted from the FATCA form and (or) the effective legislation, including the agreement on information transfer to the foreign tax authority In the event of a change of information, contained in the FATCA form, the Clearing Member is obliged to submit the FATCA form with updated information to the Clearing Centre with the attachments to the FATCA form in the form of the electronic document within 30 (thirty) days after such changes The FATCA form to be filled in by the Clearing Members is placed on the Clearing Centre website. In this respect, the documents, attached to the FATCA form, are filled in by the Clearing Member and submitted to the Clearing Centre in the form of PDF files, containing scanned copies of these documents. Article 8. Categories of the Clearing Members There are four categories of the Clearing Members: The Category «A» Сlearing Members; The Category «O» Сlearing Members; The Category «B» Сlearing Members; The Category «C» Сlearing Members The Category «A» Сlearing Members are the Bank of Russia and other persons, which are not subject to the requirement of transfer of property into individual and collective collateral under the Law on Clearing. The Category «A» Clearing Members are subject to provisions of the Law on Clearing except as otherwise provided by the agreement, made between the Category «A» Clearing Member and the Clearing Centre The Category «O» Clearing Members are the General Clearing Members. The Category «O» Clearing Member is admitted to clearing with partial collateral, with the exception of the cases stipulated by the Clearing Rules The Category «B» Clearing Members are the Individual Clearing Members, admitted to clearing with partial collateral The Category «C» Сlearing Members are the Individual Clearing Members not admitted to clearing with partial collateral. 18

19 Article 9. Conditions of Clearing Service. Procedure for admission to Clearing Service 9.1. Admission to Clearing Service in accordance with the Clearing Rules shall be provided to the Clearing Member that meets the requirements stipulated by clauses 9.2, 9.3 and/or 9.4 of the Clearing Rules, on the basis of the relevant Application for provision of admission to Clearing Service To get admission to Clearing Service, the Category «C» Clearing Member shall meet the following requirements: to have the effective Clearing Agreement concluded with the Clearing Centre; to have a valid contract/contracts concluded with the Technical Centre and ensuring technical access to the Clearing System, and install the software necessary for clearing services, conforming to the requirements established by the Technical Centre; to have the effective license for banking operations issued by the Bank of Russia (for Credit Organizations); to have the special permission (license or other ground) issued by the competent body of the state of incorporation of the Non-Resident Bank under which the Non-Resident Bank has the right to carry out banking operations (contemplated by the personal law of the Non-Resident Bank (for Non-Resident Banks); to be a member of the EDM NCC Subsystem; to meet the requirements of the Clearing Centre on presentation of information and reports stipulated in clauses hereof; to meet the requirements of the Clearing Centre on financial stability of the Clearing Member stipulated in clause 19 hereof; to submit to the Clearing Centre the details of the Refund Accounts for the main Settlement Code of the Clearing Member in accordance with the procedure stipulated by clause 2) of the subclause 24of the Clearing Rules; If the Clearing Member only plans to get Clearing Services through its branch(es), the Clearing Member shall only provide payment details of its branch(es) To get admission to Clearing Service, besides the requirements stipulated by clause 9.2 of the Clearing Rules, the Category «B» Clearing Member shall meet the following requirements: For the Non-Credit Organization Clearing Member to possess equity of not less than 180,000,000 (one hundred and eighty million) roubles; to make a contribution to the Guarantee fund in the amount stipulated by clause 12.3 of the Clearing Rules; In the Clearing Member s activities there shall be no facts of weakening of his financial standing and/or information, which gives grounds to consider possible weakening of financial standing of the Clearing Member and/or disability of the Clearing Member to fulfill in full and in a timely manner his obligations under the Trades, Margin Calls and/or other obligations of the Clearing Member, arising from the Clearing Rules To get admission to Clearing Service, besides the requirements, stipulated by clause 9.2 and subclauses of the Clearing Rules, the Category «O» Clearing Member 19

20 shall be obliged to meet the following requirements on financial stability: to possess equity (capital) of not less than (fifty billion) Russian roubles, or to possess equity (capital) of not less than (twenty billion) Russian roubles and rating in the international scale of long-term solvency for obligations in Russian roubles or in foreign currency of not less than one level below the sovereign rating of the Russian Federation, or to possess equity (capital) of not less than (twenty billion) Russian roubles assuming that the rating of the institution, entitled to expressly or implicitly control activities of the Clearing Member, which under the international scale of longterm solvency for obligations in Russian roubles or in foreign currency is not less than one level below the sovereign rating of the Russian Federation The Resident Clearing Member, besides the requirements stipulated by subclauses of the Clearing Rules, shall have a license of the Bank of Russia for banking operations with the funds in roubles and foreign currency, and/or a license for clearing activities In order to check the compliance of equity (capital) of the Non-Resident Clearing Member with the requirements, stipulated by subclauses of the Clearing Rules, the equity (capital) of the Non-Resident Clearing Member in foreign currency is converted into Russian roubles at the exchange rate of foreign currency to Russian rouble, set by the Bank of Russia on the first date of the calendar quarter of submission by the Clearing Member of the Application for the Category «O» admission to Clearing Service The Clearing Centre is entitled to request the Clearing Member, submitting the Application for the Category «O» admission to Clearing Serviceor the Application for the Clearing Member Category switch for the Category «O», to submit: information on the ownership structure of the Clearing Member; methodology and results of the stress test of the the Clearing Member s risk management framework of The Clearing Center is entitled to request the Clearing Member, meeting the requirements of the subclause of the Clearing Rules and submitting to the Application for the Category «O» admission to Clearing Service or the Application for the Clearing Member Category switch for the Category «O» to the Clearing Center, to submit the letter, issued by the institution, entitled to control activities of the Clearing Member expressly or implicitly, containing: 1) the confirmation, that the mentioned institution is aware of the intention of the person, in respect of which the letter is being issued, to gain the status of the Clearing Member on FX market and precious metals market of OJSC Moscow Exchange and perform the Clearing Broker functions; 2) information on the participation interest of the institution, issuing the letter, in the institution, in respect of which the letter is being issued and/or confirmation of control actions, and assurance of absence of intentions to reduce the share/cease the control 20