Uzbekistan central bank unveils clearing reform plan

Tashkent, Uzbekistan (UzDaily.com) — The Central Bank of Uzbekistan has published a draft procedure regulating centralized clearing operations and the activities of a central counterparty, aiming to develop a modern and resilient financial market infrastructure.

According to an explanatory note, the draft is based on international best practices, including the European Market Infrastructure Regulation (EMIR) and the Principles for Financial Market Infrastructures (PFMI) developed by CPMI-IOSCO. These standards are used to ensure the reliability and stability of central counterparty operations.

The introduction of a central counterparty institution is driven by the need to reduce counterparty risk by concentrating it within a single clearing entity. Such a model is expected to improve settlement safety and strengthen overall financial system stability.

The central bank noted that in developed economies, central counterparties serve as a key component of financial infrastructure.

Similar functions are performed by specialized institutions in Germany, Japan, Russia, and Kazakhstan, where both exchange-traded and over-the-counter transactions are cleared centrally, and settlements are secured through central bank money using the delivery-versus-payment principle.

The document also highlights differences in risk management approaches. In Kazakhstan, a system based on guarantee funds and centralized risk assessment through a clearing center is used, while Japan applies a more integrated model involving a central depository and a high level of settlement automation, significantly reducing operational risks.

In preparing the draft, the regulator studied the experience of European countries, Japan, Russia, and Kazakhstan. It noted that an effective clearing system must be built on a strong legal framework, use of central bank money, digital settlement processes, and a multi-layered risk management system.

It was previously established that the National Clearing Center’s activities as a central counterparty fall under the supervision of the Central Bank of Uzbekistan.

Public discussion of the draft document will continue until 18 April 2026.