INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of June 6, 2017 No. 4402-U

About requirements to implementation of broker activities regarding measure calculation of short-term liquidity by provision by clients of the broker of right to use of their money in its interests

This Instruction based on Item 3 of article 42 of the Federal Law of April 22, 1996 No. 39-FZ "About the security market" (The Russian Federation Code, 1996, No. 17, Art. 1918; 2001, No. 33, Art. 3424; 2002, No. 52, Art. 5141; 2004, No. 27, Art. 2711; No. 31, Art. 3225; 2005, No. 11, Art. 900; No. 25, Art. 2426; 2006, No. 1, Art. 5; No. 2, Art. 172; No. 17, Art. 1780; No. 31, Art. 3437; No. 43, Art. 4412; 2007, No. 1, Art. 45; No. 18, Art. 2117; No. 22, Art. 2563; No. 41, Art. 4845; No. 50, Art. 6247; 2008, No. 52, Art. 6221; 2009, No. 1, Art. 28; No. 18, Art. 2154; No. 23, Art. 2770; No. 29, Art. 3642; No. 48, Art. 5731; No. 52, Art. 6428; 2010, No. 17, Art. 1988; No. 31, Art. 4193; No. 41, Art. 5193; 2011, No. 7, Art. 905; No. 23, Art. 3262; No. 29, Art. 4291; No. 48, Art. 6728; No. 49, Art. 7040; No. 50, Art. 7357; 2012, No. 25, Art. 3269; No. 31, Art. 4334; No. 53, Art. 7607; 2013, No. 26, Art. 3207; No. 30, Art. 4043, Art. 4082, Art. 4084; No. 51, Art. 6699; No. 52, Art. 6985; 2014, No. 30, Art. 4219; 2015, No. 1, Art. 13; No. 14, Art. 2022; No. 27, Art. 4001; No. 29, Art. 4348, Art. 4357; 2016, No. 1, Art. 50, Art. 81; No. 27, of the Art. 4225) (further - the Federal Law "About the Security Market") establishes requirements to implementation of broker activities regarding measure calculation of short-term liquidity by provision by clients of the broker of right to use of their money in its interests.

Chapter 1. General provisions

1.1. The broker who by clients is granted right to use of their money in its interests (further - the broker) shall calculate indicator of short-term liquidity (further - PKL) according to requirements of this Instruction.

1.2. PKL is calculated by formula:

where:

VLA - assets which are available or shall be received by the broker during the present working day and the working day following it and which can be realized by the broker without essential loss in their cost, including during the instability periods, or can be transferred them to providing for the purpose of immediate receipt of money (further - highly liquid assets) which size is calculated according to Item 2.1 of this Instruction;

VK - the size of adjustment of highly liquid assets calculated according to Item 2.7 of this Instruction;

ChOODS - the net expected cash outflow which size is calculated according to Item 3.1 of this Instruction.

1.3. The broker calculates PKL monthly as of the last calendar date of month, and in case of the direction of the requirement of the Bank of Russia according to Item 7 of article 44 of the Federal law "About the Security Market" - as of the date specified in such requirement (further - settlement date).

Information on value of the calculated PKL and on the sizes included in its calculation shall be available within five years from settlement date of PKL.

1.4. PKL is calculated based on data of accounting and internal accounting of the broker.

1.5. The balance sheet and off-balance assets and liabilities nominated in foreign currency join in calculation of PKL in the ruble equivalent calculated on the official rate of foreign currency in relation to the ruble established by the Bank of Russia for settlement date.

If the official rate of foreign currency in relation to ruble is not established by the Bank of Russia, the rate of this currency is determined with use of the official US dollar exchange rate established by the Bank of Russia in relation to ruble operating for date of determination of rate, and rate of this foreign currency to US dollar for the date preceding date of determination of rate.

1.6. The requirement of this Instruction does not extend to brokers, being credit institutions.

Chapter 2. Calculation of size of highly liquid assets and size of adjustment of highly liquid assets

2.1. The size of highly liquid assets is calculated as the amount of sizes of assets of the first level (further - VLA-1) and assets of the second level (further - VLA-2), provided by Items 2.3 and 2.4 of this Instruction respectively, taking into account observance of requirements of Item 2.2 of this Instruction.

2.2. The assets which are at the same time meeting the following conditions are taken into consideration of size of highly liquid assets:

assets belong to the broker or clients if assets is money of the clients who granted to the broker the right of their use in its interests;

assets are not delivered in trust management, not encumbered, and the order is not limited to them, except for the money which is ensuring obligation fulfillment of the client before the broker.

2.3. VLA-1 is included by the following assets.

2.3.1. The money which is in cash desk.

2.3.2. The money which is on settlement accounts and special broker accounts in the credit institution or foreign bank meeting requirements of Items 8.2 and 8.3 of the Provision of the Bank of Russia of July 19, 2016 No. 548-P "About procedure of payments of own means of professional participants of the security market and also license applicants of the professional participant of the security market", the registered Ministry of Justice of the Russian Federation on August 19, 2016 No. 43321 (further - the Provision of the Bank of Russia No. 548-P), respectively, except for money which it is seized or the order to which it is limited based on the decision of relevant organ of the government.

2.3.3. The money on bank deposits (deposits) in the credit institution or foreign bank meeting requirements of Items 8.2 and 8.3 of the Provision of the Bank of Russia No. 548-P respectively placed based on the agreement containing condition about its early termination upon the demand of the broker according to whom such credit institution shall or foreign bank shall return the deposit amount (deposit) and percent on it added proceeding from the interest rate determined by such agreement.

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