INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of August 2, 2021 No. 5873-U

About establishment of obligatory capital adequacy ratio for the professional participants of the security market performing dealer, broker activities, activities for management of securities and activities Forex dealers

This Instruction based on article 76.4 of the Federal Law of July 10, 2002 No. 86-FZ "About the Central bank the Russian Federation (Bank of Russia)" (The Russian Federation Code, 2002, No. 28, Art. 2790; 2013, No. 30, the Art. 4084), 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; 2021, No. 27, the Art. 5171) and according to the solution of the Board of directors of the Bank of Russia (the minutes of the Board of directors of the Bank of Russia of July 23, 2021 No. PSD-16) establish obligatory capital adequacy ratio for the professional participants of the security market performing dealer, broker activities, activities for management of securities and activities Forex dealers.

Chapter 1. General provisions

1.1. The obligatory capital adequacy ratio (further - NDK) for the professional participants of the security market performing broker, dealer activities, activities for management of securities and activities Forex dealer (further - professional participants), is established in the following minimum admissible numerical values (further - the NDK minimum value):

4 percent since October 1, 2021;

6 percent since April 1, 2022;

8 percent since October 1, 2022.

1.2. Calculation of NDK shall be perfromed by the professional participant on formula:

where:

To - the capital size calculated by the professional participant according to Item 2.1 of this Instruction;

The KR - the size of credit risk calculated by the professional participant according to Item 3.1 of this Instruction;

RR - the size of market risk calculated by the professional participant according to Item 4.1 of this Instruction.

1.3. The professional participant shall expect NDK monthly 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 of April 22, 1996 No. 39-FZ "About the security market" (The Russian Federation Code, 1996, No. 17, Art. 1918; 2019, No. 52, the Art. 7772) (further - the Federal Law "About the Security Market") - for the date provided in the requirement specified in this Item (further - settlement date).

1.4 The professional participant shall calculate NDK, including the size of the indicators accepted to calculation of NDK as of settlement date, having provided storage of information on them, and also about value of the calculated NDK within five years from settlement date.

The professional participant shall calculate NDK, including the size of the indicators accepted to calculation of NDK based on the principles of reliability and objectivity, discretion, dominance of economic essence over form.

1.5. The professional participant shall include in calculation of NDK in the ruble equivalent calculated on the official rate of foreign currency in relation to the ruble established by the Bank of Russia according to Item 15 of article 4 of the Federal Law of July 10, 2002 No. 86-FZ "About the Central bank the Russian Federation (Bank of Russia)" (The Russian Federation Code, 2002, No. 28, Art. 2790; 2021, No. 9, the Art. 1467) (further respectively - the Federal Law "About the Central Bank Russian Federation (Bank of Russia)", the official rate of foreign currency in relation to ruble), for settlement date of NDK, nominated in foreign currency:

balance sheet assets and liabilities of the professional participant;

off-balance requirements and obligations of the professional participant;

paragraph 4 of ceased to be valid according to Item 8.3 of this document

the size of line item of the client of the professional participant carried by the professional participant according to Items 28 and 34 of the Instruction of the Bank of Russia of February 12, 2024 No. 6681-U "About requirements to implementation of broker activities when making by the broker of separate transactions for customer account" (it is registered by the Ministry of Justice of the Russian Federation on July 2, 2024, registration No. 78736) (further - the Instruction of the Bank of Russia No. 6681-U) to category of clients with the initial, standard, increased or special risk level (further - the client with certain risk level), according to the transactions made by the professional participant as the broker (broker) on its own behalf and at the expense of the specified client, calculated according to Item 3.19 of this Instruction (further - the client's line item with certain risk level).

If the official rate of foreign currency in relation to ruble is not established by the Bank of Russia, the professional participant shall determine the foreign exchange rate with use of the official US dollar exchange rate 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 professional participant shall provide respect for the NDK minimum value on permanent basis.

1.7. If the professional participant revealed decrease in NDK below the NDK minimum value, the professional participant shall eliminate the discrepancy specified in this paragraph in the following terms:

within one month from the date of increase (lowering) in rate of risk by the clearing organization of reduction (increase) in the price of the security, precious metals or the foreign exchange rate calculated by the clearing organization according to Item 39 of appendix to the Instruction of the Bank of Russia No. 6681-U - if decrease in NDK of the NDK minimum value resulted from increase (lowering) by the clearing organization of the risk rate provided in this paragraph below;

within two months from the date of publication on the official site of the Bank of Russia on the Internet of information on levels of credit ratings, the decision on which establishment is made by the Board of directors of the Bank of Russia according to Item 17.5 of part one of article 18 of the Federal law "About the Central Bank Russian Federation (Bank of Russia)" (The Russian Federation Code, 2002, No. 28, Art. 2790; 2021, No. 24, of the Art. 4210) (further - the level established by the Board of directors of the Bank of Russia), - if decrease in NDK below the NDK minimum value resulted from discrepancy of the assets taken into consideration of size of credit risk of the professional participant, to requirements of Chapter 3 presents of the Instruction in connection with acceptance by the Board of directors of the Bank of Russia of the decision specified in this paragraph.

1.7 (1). Concerning being asset of the professional participant, providing on asset of the professional participant of bonds of the Russian issuers, the decision on which release contains condition about use of all money received from placement of the specified bonds on the purposes connected with financing of projects of technological sovereignty and (or) the projects of structural adaptation of economy of the Russian Federation determined in Item 2 of the Regulations on conditions of reference of projects to projects of technological sovereignty and projects of structural adaptation of economy of the Russian Federation about submission of data on projects of technological sovereignty and projects of structural adaptation of economy of the Russian Federation and maintaining the register of the specified projects, and also about requirements to the organizations, authorized to represent the conclusions about compliance of projects to requirements to projects of technological sovereignty and to projects of structural adaptation of economy of the Russian Federation, No. 603 approved by the order of the Government of the Russian Federation of April 15, 2023 (further respectively - bonds of the CU, the bond of SAE, projects of TS, the SAE projects), and also concerning the obligations of the professional participant which are object for calculation of market risk on the specified bonds according to the decision of the professional participant in calculation of size of credit risk, market risk and reserve on possible losses according to Chapters 3 - 7 these Instructions the rate of risk of reduction of the price of security specified in the paragraph the fifteenth Item 3.3 of this Instruction, the risk measure values established by subitems 3.4.3 and 3.4.4 of Item 3.4 of this Instruction, the adjusting factors established by Items 3.7 and 3.8 of this Instruction, and the coefficients of asset impairment of the professional participant established by paragraphs the sixth - the ninth Item 7.3 of this Instruction, increased by the following decreasing coefficients is accepted:

30 percent - for bonds of the CU and (or) bonds of SAE concerning which the professional participant renders services in placement and (or) the organization of placement or according to Item 3 of part 3 of article 5 of the Federal Law of July 27, 2010 to No. 224-FZ "About counteraction to unauthorized use of the insider information and to market manipulation and about modification of separate legal acts of the Russian Federation" perform the actions directed to maintenance of the prices, demand, the offer and (or) the trading volume;

50 percent - for other bonds of the CU;

70 percent - for other bonds of SAE.

Adoption by the professional participant of the decision on use of the decreasing coefficients specified in paragraphs the second - the fourth this Item, is allowed in case of simultaneous observance of the following conditions:

bonds of the CU and (or) the bond of SAE are placed after December 31, 2022;

the decision on bond issue of TS and (or) bonds of SAE contains the following data:

the project description of TS and (or) the SAE projects for which financing the money received from placement of bonds of the CU and (or) bonds of SAE with indication of the planned project deadline of TS and (or) the SAE projects and the predicted amount of their financing will be used;

data on the right of bondholders of TS and (or) bonds of SAE to require early repayment of the bonds of the CU and (or) bonds of SAE belonging to them in case of violation by the issuer of condition about target use of the money received from placement of bonds of the CU and (or) bonds of SAE or specifying that such right is not granted to owners of such bonds;

the description of the mechanism of control of target use of the money received from placement of bonds of the CU and (or) bonds of SAE which possibility of use the issuer shall provide;

to open data on obligation of the issuer (to provide) information on target use of the money received from placement of bonds of the CU and (or) bonds of SAE with indication of amount, terms and procedure for disclosure (provision) for such information.

The size of assets, providing on assets, and also the obligations of the professional participant which are object for calculation of market risk, calculated according to Chapters 3 - 7 these Instructions concerning bonds of the CU and (or) bonds of SAE on which the professional participant makes the decision on use of decreasing coefficients according to paragraph one of this Item in total shall not exceed the smallest of the following sizes before application of such coefficients:

10 percent from the size of the capital calculated by the professional participant according to Item 2.1 of this Instruction as of settlement date;

10 percent from the size of the average annual profit of the professional participant for 3 years calculated as the amount of values on the line "Profit (Loss) after the Taxation" of form of the reporting 0420003 "The report on financial results of the not credit financial credit institution" established by the Provision of the Bank of Russia of February 3, 2016 No. 532-P "Industry standard of the financial accounting "Procedure for Creation of Accounting (Financial) Records of Professional Participants of the Security Market, Joint-stock Investment Funds, Organizers of Trade, Central Partners, Clearing Organizations, Specialized Depositaries of Investment Fund, Mutual Investment Fund and Non-state Pension Fund, Managing Companies of Investment Fund, Mutual Investment Fund and Non-state Pension Fund, Bureau of Credit Histories, Credit Rating Agencies, Insurance Brokers" (it is registered by the Ministry of Justice of the Russian Federation on March 2, 2016, registration No. 41299, with the changes made by Instructions of the Bank of Russia of September 5, 2016 No. 4128-U (it is registered by the Ministry of Justice of the Russian Federation on December 15, 2016, registration No. 44749), of September 7, 2017 No. 4520-U (it is registered by the Ministry of Justice of the Russian Federation on September 28, 2017, registration No. 48350), of June 10, 2019 No. 5166-U (it is registered by the Ministry of Justice of the Russian Federation on July 8, 2019, registration No. 55164), of February 24, 2021 No. 5738-U (it is registered by the Ministry of Justice of the Russian Federation on March 29, 2021, registration No. 62911), of September 9, 2021 No. 5922-U (it is registered by the Ministry of Justice of the Russian Federation on October 13, 2021, registration No. 65397), over the last 5 years with exception of the maximum and minimum values which shares on 3.

If the size of average annual profit of the professional participant for 3 years by results of calculation according to the paragraph the fourteenth this Item accepts negative value, its value is considered to equal 0 (zero).

1.7 (2). When implementing calculation of size of credit risk and size of reserve on possible losses according to Chapters 3 and 7 of this Instruction as providing on asset of the professional participant assets concerning which encumbrance or restriction of the order is set shall not be considered (including assets which it is seized, or the order which it is limited based on the decision of public authority, or restriction of the order by which it is set owing to unfriendly actions of foreign states, the international organizations, the foreign financial organizations including connected with introduction of rationing arrangements concerning the Russian Federation, the Russian legal entities and citizens of the Russian Federation (further - unfriendly actions), except for the following cases:

encumbrance or restriction of the order with assets are established according to requirements of the professional participant which subject is money, including foreign currency cash, securities, goods (including precious metals) and for which providing such assets are provided;

the professional participant as providing on asset receives till December 31, 2023 eurobonds on which obligations are fulfilled according to the Presidential decree of the Russian Federation of July 5, 2022 No. 430 "About repatriation by residents - participants of foreign economic activity of foreign currency and currency of the Russian Federation", or eurobonds of the Russian Federation on which obligations are fulfilled according to the Presidential decree of the Russian Federation of September 9, 2023 No. 665 "About temporary procedure for execution before residents and foreign creditors of the state debt obligations of the Russian Federation expressed in government securities which nominal value is specified in foreign currency and other obligations on foreign securities" at the same time concerning these assets encumbrance or restriction of the order, except restriction of the order owing to unfriendly actions is not set.

1.7 (3). The credit rating of the legal entity who is under control or considerable influence of the professional participant the, and (or) the legal entity controlling or exerting considerable impact on the professional participant and (or) the legal entity who is under control or considerable influence of the third legal entity (third legal entities), under which control (which) there is professional participant appropriated by the Russian credit rating agency (except as specified when the specified third legal entities are the Bank of Russia, federal bodies of the government, public authorities of subjects of the Russian Federation and local government bodies) (further in case of joint mentioning - reytinguyemy person), it is used for the purposes of calculation with the professional participant of size of credit risk, market risk and size of reserve on possible losses according to Chapters 3 - 7 these Instructions, if the level of assessment of own (independent) creditworthness of reytinguyemy person is not more than two levels lower than the credit rating appropriated to it by the Russian credit rating agency.

1.7 (4). When implementing calculation of size of credit risk and size of reserve on possible losses according to Chapters 3 and 7 of this Instruction as providing on asset of the professional participant and contingent obligation of credit nature of the professional participant securities, except for the clearing participation certificates provided to the professional participant by his partner - the legal entity are not considered if the obliged person on such securities is the specified partner or the legal entity who is under control or considerable influence of the specified partner and (or) the legal entity controlling or exerting considerable impact on the specified partner, and (or) the legal entity who is under control or considerable influence of the third legal entity (third legal entities), under which control (which) there is the specified partner (except as specified when the specified third legal entities are the Bank of Russia, federal bodies of the government, public authorities of subjects of the Russian Federation and local government bodies).

When implementing calculation of size of line item of the client with certain risk level - the legal entity according to requirements of Item 3.19 of this Instruction of measure value of PPj and MRkp for securities according to which obliged person is the specified client or the legal entity who is under control or considerable influence of the specified client and (or) the legal entity controlling or exerting considerable impact on the specified client, and (or) the legal entity who is under control or considerable influence of the third legal entity (third legal entities) under which control (which) there is the specified client (except as specified, when the specified third legal entities are the Bank of Russia, federal bodies of the government, public authorities of subjects of the Russian Federation and local government bodies) shall be recognized the professional participant equal to zero if the planned closing balance on such securities calculated according to the paragraph the fifth Item 3.19 of this Instruction is positive.

1.7 (5). The concepts "control" and "considerable influence" are applied in Items 1.7 (3) and 1.7(4) these Instructions in the value established:

International accounting standard (IFRS) 10 "Consolidated financial statements" enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation of December 28, 2015 No. 217n "About introduction of International accounting standards and Explanations of International accounting standards in action in the territory of the Russian Federation and about recognition voided some orders (separate provisions of orders) of the Ministry of Finance of the Russian Federation" (it is registered by the Ministry of Justice of the Russian Federation on February 2, 2016, registration No. 40940) with the changes made by orders of the Ministry of Finance of the Russian Federation of July 11, 2016 No. 111n (registration No. 43044) is registered by the Ministry of Justice of the Russian Federation on August 1, 2016, of September 17, 2024 No. 127n (registration No. 80431) (further - the order of the Ministry of Finance of the Russian Federation No. 217n is registered by the Ministry of Justice of the Russian Federation on December 2, 2024), with amendments, enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation of June 27, 2016 No. 98n "About introduction of documents of International accounting standards in action in the territory of the Russian Federation and about recognition voided some orders of the Ministry of Finance of the Russian Federation" (registration No. 42869) (further - the order of the Ministry of Finance of the Russian Federation No. 98n is registered by the Ministry of Justice of the Russian Federation on July 15, 2016);

International accounting standard (IFRS) 11 "Joint venture" enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 217n with the amendments enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 98n, the order of the Ministry of Finance of the Russian Federation of March 27, 2018 No. 56n "About introduction of documents of International accounting standards in action in the territory of the Russian Federation" (registration No. 50779) (further - the order of the Ministry of Finance of the Russian Federation No. 56n is registered by the Ministry of Justice of the Russian Federation on April 16, 2018);

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