On specifying assessment methodology of management quality of credit institution acting as central counterparty

The Bank of Russia issued Ordinance No. 3367-U, dated 21 August 2014, ‘On Amending Bank of Russia Ordinance No. 2919-U, Dated 3 December 2012, on the Assessment of the Management Quality of a Credit Institution Acting as a Central Counterparty’ (hereinafter the Ordinance), registered by the Ministry of Justice of the Russian Federation on 18 September 2014 under No. 34094.

The Ordinance has been issued to specify the methodology to assess the management quality of a central counterparty (CC), measure its management quality indicators, taking into account international standards on CC activities.

The Ordinance shall stipulate:

• the Bank of Russia’s right to take measures in the event of identifying cases of CC unsatisfactory management quality;
• an expanded list of reasons for the Bank of Russia to change its decision on CC satisfactory management quality;
• restrictions on the CC placement of funds in precious metals;
• the specification of requirements for securities taken by CCs as collateral;
• the opening by CCs of correspondent accounts with resident banks of CIS member countries;
• a changed approach to assigning a rating to resident banks when opening by CCs correspondent accounts and placing funds.

The Ordinance is effective 10 days following the date of its official publication in the Bank of Russia Bulletin.

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03.10.2014 00.00.00