Recent Developments In Russian Clearing And Netting Legislation

Federal law 7-FZ "On clearing and clearing activity" dated 7 February 2011 and Federal law 8-FZ "On implementation of amendments to certain Russian laws in compliance with the Federal law "On clearing and clearing activity" dated 7 February 2011 ("the new clearing legislation") have been adopted by the State Duma, approved by the Federal Council, signed by the President and officially published. They will enter into force on 1 January 2012.

The new clearing legislation stipulates the legal basis for clearing activities (non-cash transactions based on the mutual settlement of debts, including netting of obligations), including risk management procedures, requirements for legal entities performing clearing activities and the functions of the central counterparty (the clearing entities), as well as the legal framework for state regulation and supervision of clearing activities.