INFORMATION ABOUT THE WORK CARRIED OUT WITHIN THE FRAMEWORK OF ESTABLISHING THE NATIONAL CLEARING CENTER’S ACTIVITIES

In accordance with the Decree of the President of the Republic of Uzbekistan "On additional measures for the development of the capital market" No. 291, the Joint-Stock Company National Clearing Center was established at the foundation of the Joint-Stock Company Uzbek Republican Currency Exchange.

The National Clearing Center carries out centralized clearing, performs the functions of a Central Counterparty and functions as a settlement bank.

Clearing means accounting, identification and determination of mutual claims and obligations of clearing participants under concluded agreements.

The central counterparty is a financial institution that acts as a seller for the buyer and a buyer for the seller for each of the transactions concluded in the financial market. Its main purpose is to reduce the risk of default on transactions, that is, to reduce credit risk, to guarantee the completion of settlements on concluded transactions by managing the occurrence of default cases, as well as to reduce the transaction costs of clearing participants by netting.

In addition, according to the decree mentioned above it was required to open a correspondent account with the Central Bank until May 1, 2024 to enable settlement functions of the National Clearing Center. As part of ensuring its implementation, the following works were carried out:

In order for the National Clearing Center to perform its functions as a settlement bank for concluded transactions, a correspondent settlement account in sums was opened at the Central Bank.

Taking into account the main aspects of the activities of the National Clearing Center, the IT specialists of the Uzbek Republican Currency Exchange have developed and connected the automated banking system RoBUST to the telecommunications network of the Central Bank and the interbank payment system (RTGS).

A special Guarantee Fund was established to ensure the high-quality implementation of the function of the National Clearing Center as a Central Counterparty, increase customer confidence in the clearing system, ensure the stability of execution of transactions concluded on the capital market, and mitigate the consequences of default situations.

In addition, draft regulatory documents are being developed to provide for the introduction of a new clearing model by introducing settlements in the "T+2" mode on the government securities market and the abolition of requirements on preliminary depositing of securities and funds.

In its turn these innovations will definitely contribute to attracting foreign investors and creating favorable conditions by increasing the attractiveness and transparency of the financial market, improving its compliance with international standards.