Cash clearing system - Russia
The RUB cash clearing system is based upon five processing cycles throughout the day in the Central Bank of Russia (CBR), as follows:
|CBR processing cycle||Instructions to CBR|
(Moscow Time) a
(Moscow Time) a
|Cycle 1||10:00 - 11:00||12:00|
|Cycle 2||11:15 - 14:00||15:00|
|Cycle 3||14:15 - 16:00||17:00|
|Cycle 4||16:15 - 18:00||20:00|
|Cycle 5||19:00 - 21:00||22:00|
a. Moscow Time = CET+2 hours during winter time and CET+1 hour during summer time.
Current market practice
The features of market practice in the Russian cash clearing process are as follows:
- Cycles 1, 2 and 3 are rarely used: funds are transferred to counterparties mainly during Cycles 4 and 5.
- Instructions are processed on a gross basis: netting is not allowed.
- Cash received during one cycle cannot be used to execute payments until the following cycle.
- Funds received up to and including Cycle 4 will be placed overnight as per the mandatory reserve requirements of the CBR: funds will be returned by the end of Cycle 4 on the following day.
- Funds received in Cycle 5 will not be included in the overnight placements.
- Reporting is provided by the CBR after each cycle and by domestic participants throughout the day.
- The market does not operate on the basis of SWIFT MT210 messages.
Application of value date (VD)
If no delays occur, funds received in Cycle 4 are, as a general rule, applied to the counterparty with same-day value.
The results from Cycle 5 (which runs between 19:00 and 21:00 Moscow Time) are available at around 22:00 Moscow Time. As this cycle occurs after the close of business in Russia, practice indicates that, for funds transferred during Cycle 5, the delivering party is debited for same-day value and the receiving party is credited for VD+1.