The Bank of Russia has revised the procedure for calculating the capital adequacy ratio for professional securities market participants. This update aims to mitigate financial stability risks within the sector.
According to the new version of the relevant Ordinance, there are changes in how a broker’s credit risk is calculated concerning clients whose risk coverage in margin transactions falls below the required ratio. The updated rules specify that securities issued by the debtor or assets from companies affiliated with the debtor cannot be accepted as collateral. Additionally, it allows for reduced credit risk rates on debts from companies related to a broker if their ratings and standalone creditworthiness assessments demonstrate financial resilience.
The document outlines procedures for calculating risks associated with digital rights acquired and issued by professional market participants. It also permits an alternative calculation method for market risk related to option contracts, aligning with regulations applied to credit institutions. Furthermore, measures have been introduced to discourage holding large open foreign currency positions among professional market participants. The updated version also simplifies rules for setting credit risk rates concerning counterparties and clients.
The Ordinance will take effect on October 1, 2025.
