Transaction Monitoring

Exchange Deposit

Well-timed fulfillment of obligations can be implemented through the following collateralization methods: deposit – amount of money established by the Exchange, ● bank guarantee, ● documentary credit, ● factoring, ● documentary encashment, ● liability insurance statement and other methods approved by the Exchange. In practice the deposit is often applied.

Exchange deposit is an amount of money transferred to the Exchange by an exchange trade participant and kept at the sub-account of the Exchange as the collateralization of contractual obligation fulfillment (for Exchange Transaction Contract and under Exchange Service Contract). It considerably differs from the deposit in civil legislation (amount of money transferred by the customer to the seller on account of his money liabilities) and in fact means the amount of money transferred to the account of the third party as the collateralization. In case of non-fulfillment of obligations this amount will be a significant loss. Consequently, the exchange deposit is the universal method as it makes either party fulfill their commitments.

Exchange deposit collateralizes the fulfillment of the following commitments of the exchange trade participant:

  • Drawing up and registration of the Exchange Transaction Contract in accordance with the Regulations of exchange auctions for trading sections (no later than 3 workdays after making exchange transaction for the sections of metal and timber products, whereas for the section of agricultural products is no later than 5 workdays after the same event).
  • Providing the transactions register of the exchange trade participant in accordance with the terms established by the Exchange.
  • Payment of exchange fee for the exchange transaction made in accordance with the Exchange Service Contract.
  • Contractual commitments and the collateralization of their fulfillment by the exchange broker for the benefit of the customer.
  • Other commitments in accordance with Deposit Agreement signed by either party (this Agreement is a supplement to the Exchange Service Contract).

Exchange Deposit Rate and its minimal amount are established by the Exchange depending on the group of commodities. The amount of exchange deposit under contract (or its part) is equal to the rates of exchange deposit times amount of commodities for sale (to buy) and cannot be less than established minimal amount.

Since February 23, 2015 the Exchange admits the exchange trade participant to exchange auctions in case he provides the exchange deposit, but it must be sufficient enough to collateralize the fulfillment of exchange fee payment obligations for the concluded exchange transaction. This Exchange Deposit Rate for non-residents is 450 EUR/ 500 USD/ 30 000 RUB.