Translartion. Region: Russians Fedetion –
Source: Central Bank of Russia –
Bank of Russia updated the calculation procedure capital adequacy ratio (CAD) for professional participants in the securities market in order to minimize risks to their financial stability.
The new version specifies the procedure for calculating the broker’s credit risk in relation to clients for whom the risk coverage standard has been violated when making margin transactions. It is prohibited to accept securities issued by the debtor itself and assets of companies affiliated with it as collateral. It is also permitted to use the broker’s ratings to reduce the credit risk rates in relation to the debt of companies associated with the broker, but on the condition that the debtor’s assessment of its own (independent) creditworthiness indicates its financial stability.
In addition, the document provides for the calculation of the risk on digital rights acquired and issued by a professional participant. An alternative calculation of the amount of market risk on option agreements has appeared (similar to the regulation of credit institutions). Measures are being introduced to discourage large open currency positions among professional participants. The rules for determining the values of credit risk rates in relation to counterparties and clients are also simplified.
The regulation comes into force on October 1, 2025.
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Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Please Note; This Information is Raw Content Directly from the Information Source. It is account to What the Source Is Stating and Does Not Reflect the Position of Mil-Sosi or Its Clients.
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