Settlements upon transactions made on the futures market are carried out in the settlement and clearing system for securities of the Republic of Belarus, the main infrastructure elements of which for the futures segment are:
Settlement Bank - National Bank.
Financial settlements on the derivatives market are carried out according to the following algorithm:
Funds reservation for trading
Clearing Members reserve funds on their correspondent accounts with the National Bank of the Republic of Belarus that are necessary for trade participants to open (maintain) positions in the futures market before the start of the trading session .
The National Bank of the Republic of Belarus provides BCSE with information on funds amounts reserved by Clearing Members for trading, and information on participants' funds amounts blocked on BCSE account with the National Bank of the Republic of Belarus to secure previously opened positions.
Fund management
During the trading session, trade participants can additionally reserve or unlock (withdraw) free funds on the correspondent account.
Clearing
After the end of the trading session, BCSE performs clearing. The clearing procedure provides for the calculation of obligations for each Section member on variation margin, deposit margin addition/refund, delivery payment and compensation. For each Clearing Section member , obligations are determined both for his transactions and positions, and for transactions and positions of Trading Section Members which are under his settlement service. The balance of the specified obligations of the Clearing Section Member e forms the net obligation of this Clearing Member.
The variation margin obligation is defined as a change positions valuation opened at the beginning of the clearing session as a result of their market adjustment - the procedure for setting a single (settlement) price for each series of futures instruments. The settlement price is determined according to the algorithm described in the BCSE Rules for Futures Transactions , as the most representative price of this series of futures instruments at the end of trading.
Сalculation of requirements for the deposit margin size of Clearing Members is carried out during the clearing session after offsetting positions. The deposit margin requirement depends on the deposit margin rate and the number of open positions on each trading account. The deposit margin rate in its turn is determined by the price change limit.
To fulfill delivery payment obligations , Clearing Members shall ensure the reservation and/or transfer of funds in the amount corresponding to the amount of obligations calculated in accordance with the procedure defined in the BCSE Rules for Futures Transactions to a trading account. Conditions, terms and procedure for reserving and transferring funds are established by the delivery instrument specification .
Information on net obligations of Clearing Members is transmitted to the National Bank of the Republic of Belarus, which performs settlements upon obligations between Clearing Members.
Further, Clearing Members carry out settlements with their Trading Members and clients. All relations between Clearing and Trading Members are defined in settlement service contracts, and between members of the Futures Market Section and their clients – for trading services.
Settlement and clearing operations hours
|
Time |
Type of operation |
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|
Reservation of funds (including additional reservation during trading) |
|
13.00 - 15.15 |
Receiving information by BCSE: electronic message from the National Bank of the Republic of Belarus containing information about the amount of funds reserved on the correspondent account of the participating bank and the amount of funds for which the reserve was increased (CV files with information about the reference number of the corresponding message); from participating banks, information on the reserve amount for their own needs and by trade participants, as well as on the amount of funds for which the reserve was increased for their own needs and by trade participants serviced by these participating banks |
|
14.00 - 15.15 |
The BCSE settlement and clearing system transmits into the trading system information about the amount of the established reserve and the increase in the reserve of funds on the correspondent account of the participating bank for its own needs and in the context of trading participants |
|
|
Fund management (fund withdrawal) |
|
14.00 - 15.10 |
Providing BCSE with an electronic message about the withdrawal of funds from trading by participating banks to the exchange of |
|
14.00 - 15.20 |
Formation by BCSE and sending to the National Bank of the Republic of Belarus information on participating banks on the amount of funds withdrawn from trading |
|
14.00 to 15.30 |
Receiving National Bank of the Republic of Belarus confirmation by BCSE on execution of an electronic message to reduce the reserve amount on the correspondent account of the participating bank; Formation and sending to the participating bank an electronic message with information about the amount of funds withdrawn from trading, in the context of trade participants |
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|
Clearing |
|
15.45 - 16.05 |
Formation by BCSE and sending to the National Bank of the Republic of Belarus of an electronic document containing net debit (credit) positions based on the results of trading in financial instruments of futures transactions or information about the absence of net debit positions |
|
16.05 - 16.30 |
Informing BCSE by the National Bank of the Republic of Belarus about completing the net debit (credit) positions display upon correspondent (inter-branch) accounts of participating banks (the National Bank of the Republic of Belarus); Formation by BCSE and sending to the participating banks and the National Bank of the Republic of Belarus of an electronic document containing net debit (credit) positions by types of securities of both the participating bank (the National Bank of the Republic of Belarus) and each of the trading participants serviced by it |