For clearing institutions – НКЦПФР|НАЦІОНАЛЬНА КОМІСІЯ З ЦІННИХ ПАПЕРІВ ТА ФОНДОВОГО РИНКУ

Clearing is the process of determining obligations, including through netting, under derivative contracts and legal transactions involving other financial instruments, foreign exchange assets, and commodity transactions, accompanied by ensuring the functioning of a risk management system and guarantees for the fulfillment of such obligations.

Clearing activity include the following types of activities:

clearing activity to determine obligations;
clearing activity of a central counterparty.

Clearing activity to determine obligations involve clearing, as well as making settlements in the clearing accounting system and/or organizing settlements, including by preparing documents (information) for conducting settlements and sending them to the relevant institutions that conduct settlements.

The clearing activity of a central counterparty are the activities of a clearing institution involving clearing, making settlements in the clearing accounting system, and/or organizing settlements, including by preparing documents (information) for conducting settlements and sending them to the relevant institutions that conduct settlements, as well as acquiring mutual rights and obligations of the parties during or after the entering into (execution):

derivative contracts;
legal transactions involving financial instruments;
legal transactions involving assets (including products) admitted to trading in organized markets other than those specified in paragraphs 1 and 2 of Part 1 of Article 60 of the Law of Ukraine “On Capital Markets and Organized Commodity Markets.”

Requirements for the initial capital of applicants and licensees – it must be no less than UAH 25 million.

A licensee must have the necessary equipment to carry out clearing activities, including computer hardware with appropriate software and communication channels.

A licensee for clearing activities must develop, register with the NSSMC, and keep up to date transparent, non-discriminatory, and non-discretionary rules for clearing activities based on objective criteria that meet the requirements of the legislation governing clearing activities.

An applicant/licensee must own or rent one or more non-residential premises with a total area of no less than 35 sq. m., which is (are) completely separated from the premises of other legal entities (in the case of an applicant/licensee combining clearing activities with the activities of the Central Securities Depository, an operator of an organized market, this rule does not apply).

A complete list of requirements for applicants/licensees is contained in the relevant regulatory documents:

Resolution of the National Securities and Stock Market Commission dated 21 October 2021 No. 982 “On Approval of the Procedure for Issuing, Suspending, and Terminating Licenses for Professional Activities in Capital Markets,” registered with the Ministry of Justice of Ukraine on 03 December 2021 under No. 1563/37185;

Resolution of the National Securities and Stock Market Commission “On Approval of Licensing Conditions for Professional Activities in Capital Markets – Clearing Activities” dated 19 August 2021 No. 665, registered with the Ministry of Justice of Ukraine on 26 October 2021 under No. 1382/37004.

The following indicators are used to measure and assess the risks of a person who carries out clearing activities (other than a Clearing Center):

SIZE OF REGULATORY CAPITAL. The minimum regulatory capital of a person conducting clearing activities should be not less than the minimum size of the statutory capital established by law for the person who received the license for the conduct of clearing activities.

COEFFICIENT OF COVERING OBLIGATIONS OF CLIENT PARTICIPANTS. It is calculated as the ratio of the amount of liabilities in cash to the clients of the person who carries out the clearing activity, based on the clearing about the contracts of sale and purchase of securities, the term of fulfillment of which obligations has come, to the amount of the cost of pre-reserved participants cash clearing (provision of liabilities (s) and the size of the guarantee (or other similar purpose) fund. Normative value of the coefficient – no more than 1.

FINANCIAL STABILITY COEFFICIENT (for institutions operating as central counterparty only). Calculated as the ratio of the amount of equity capital of the institution to the value of its assets. Normative value of the coefficient – not less than 0,5.

COEFFICIENT OF GENERAL LIQUIDITY. Calculated as the ratio of the value of the current assets of the institution to the value of its current liabilities. Normative value of the coefficient – not less than 1.

COEFFICIENT OF ABSOLUTE LIQUIDITY. It is calculated as the ratio of the cost of highly liquid assets of the institution, which includes cash, their equivalents and current financial investments, to the amount of its current liabilities. Normative value of the coefficient – not less than 0,2.

Clearing institutions shall report to the NSSMC in accordance with the requirements of the Regulation on the procedure for reporting clearing activity to the National Securities and Stock Market Commission, approved by the Resolution of the National Securities and Stock Market Commission dated December 27, 2013 No. 2994, registered with the Ministry of Justice Of Ukraine on January 23, 2014 under No. 144/24921.

Service	Fee, uah	The term