Transactions at ICSDs
How securities transactions are settled by Euroclear?
Transactions with securities have been blocked due to the inclusion of NSD on 3 June 2022 in the list of entities provided for in Annex I of EU Regulation No. 269/2014.
How securities transactions are settled by Clearstream?
NSD’s account with Clearstream was blocked on 24 March 2022. Clearstream will make a decision to resume operations on NSD’s account following the consideration of the requested documents and information regarding NSD by the competent regulatory authorities of Luxembourg.
Information about resuming operations will be announced as soon as it becomes available to NSD.
Does NSD process payments on non-Russian securities serviced by Euroclear and, if yes, how?
NSD does not make income payments due to their blocking by Euroclear on NSD's accounts with Euroclear.
Does NSD process payments on non-Russian securities serviced by Clearstream and, if yes, how?
No payments on non-Russian securities serviced by Clearstream are currently processed. NSD’s account with Clearstream was blocked on 24 March 2022. Information about resuming payments will be announced as soon as it becomes available to NSD.
Is it possible to transmit information regarding securities held in securities accounts with NSD to international securities depositories?
NSD may transmit such information to international securities depositories by email on the basis of an official letter from the depositor, drawn up in accordance with the attached template.
How are depositary receipts converted?
Depositary receipt conversions on NSD’s accounts* with Euroclear and Clearstream have been suspended until clarifications are received from the regulators.
Source: Euroclear, Clearstream
* If a Client does not use NSD’s account for the safekeeping of depositary receipts, the availability of conversion (including local securities receipt and delivery) can be clarified directly with the relevant securities depositories, or with the depository bank or local custodian bank. Instructions on local (Russian) securities sent to NSD as part of the of depositary receipts conversion are executed in the manner described in the section ‘Information for clients/Transactions at NSD’.
Transactions at NSD
Will NSD inform clients about corporate actions related to foreign securities?
NSD continues to provide its clients with the information received from foreign securities depositories.
How will NSD’s clients participate in corporate actions for non-Russian securities?
Information on forthcoming corporate actions is provided as usual. Mandatory corporate actions will be processed by NSD upon receipt of relevant reports from foreign depositories.
Receipt of information from NSD has been suspended on the Euroclear side. NSD is unable to provide information to Euroclear through electronic data interchange channels, including disclosures.
Receipt of instructions from NSD to participate in corporate actions has been suspended on the Clearstream side.
Does NSD process foreign exchange transactions?
Since 6 June 2022, NSD has stopped processing foreign exchange transactions with any currency pairs.
What will happen to clients’ EUR account balances?
Due to the blocking by correspondent banks of NSD's EUR account balances, and the suspension of operations in EUR by NSD, NSD has blocked cash balances in EUR held on clients’ bank accounts with NSD. The balances were blocked as of the end of the business day on 3 June 2022.
Unblocking of balances will become possible upon lifting the restrictions on transactions introduced by NSD's correspondent banks.
Is it possible to make payments in EUR within NSD?
All payments in EUR have been blocked, including internal transfers.
Is it possible to make payments in USD?
Payments in USD are processed as usual.
Will there be a fee for holding EUR balances, if yesso, how will it be calculated?
The fee shall be charged in accordance with NSD’s Fee Schedule.
Is it possible to limit the crediting of funds to the account?
Yes, this option is provided when the client submits an Application to restrict the crediting of funds to bank accounts.
Is it possible to transfer non-Russian securities to another securities depository?
Due to the blocking of NSD's accounts with foreign securities depositories, it is not possible to transfer non-Russian securities from a securities account opened with NSD to another Russian or foreign securities depository.
Does NSD settle FOP (Free of Payment) transactions with non-Russian securities held on securities accounts with NSD?
Transactions are settled taking into account the restrictions established by the current legislation of the Russian Federation, including Decrees of the President, Orders and Recommendations of the Bank of Russia.
Does NSD settle DVP (Delivery Versus Payment) transactions with non-Russian securities held on securities accounts with NSD?
Transactions with non-Russian securities are subject to previously established restrictions (except for the EUR).
Does NSD settle transactions on a DVP basis using cash accounts held with non-Russian settlement banks (JPMorgan or Citibank NY) and, if yes, how?
Settlement on a DVP basis using cash accounts held with non-Russian settlement banks (JPMorgan or Citibank NY) takes place as usual, in accordance with NSD’s Clearing Rules.
How are transactions in non-Russian persons’ bank accounts processed?
Transactions in bank accounts held by non-Russian persons are processed subject to the restrictions imposed by the Russian President’s Executive Order No. 95 dated 5 March 2022 “On a Temporary Procedure for Meeting Obligations to Certain Foreign Creditors” and the Resolution of the Bank of Russia Board of Directors dated 18 March 2022.
Are there any changes in the procedure for payment of income on, or redemption of, Russian bonds?
The procedure for interaction with issuers and payment of income on bonds subject to centralized safekeeping/recordkeeping at NSD has not changed.
Payments to non-Russian persons will be subject to the restrictions imposed by the current Russian regulations on amounts payable to them.
For whom does NSD open Type “C” securities accounts?
Type "C" securities accounts shall be opened by the Russian securities depository for all current and new foreign clients: securities holders, foreign nominee holders. This rule does not apply to foreign entities that are international companies and international funds registered in accordance with Federal Law No. 290-FZ dated 3 August 2018 “On International Companies and International Funds”.
How to open a Type “C” owner securities account with NSD?
For clients who were serviced by NSD as of 5 March 2022, NSD opened Type "C" securities accounts on the basis of internal instructions; no application for opening a securities account is required. In all other cases, Type “C” owner securities accounts shall be opened on the basis of an account application (Form GFS84 or GF085, depending on the type of owner securities account: trading or not).
How to open a Type “C” foreign nominee securities account with NSD?
Foreign nominee securities accounts opened as of 5 March 2022 are automatically classified as Type “C” foreign nominee securities accounts. New Type “C” foreign nominee securities accounts shall be opened on the basis of an account application (Form GFS84).
What are the rules for opening a Type “C” sub-account?
Type “C” sub-accounts shall be opened in accordance with the rules defined by relevant securities account agreements. The procedures for opening certain sub-accounts are described in Section 4 of NSD’s Guidelines on the Procedure for Interaction between the Depository and Clients in the Course of Performance under the Terms and Conditions of Depository Operations.
How to open a Type “C” account: Owner Trading Securities Account. CCP NCC?
If a NCC-cleared trading securities account (securities account type code: HS) was opened before 5 March 2022, then the corresponding Type “C” owner trading securities account (securities account type code: UN) shall be opened on the basis of an internal instruction; no application is required. If a foreign nominee trading securities account was opened before 5 March 2022 (securities account type code: HF or HW), there is no need to open a new trading securities account. The same securities accounts will be used for NCC clearing. In the future, in order to open a trading securities account, clients shall submit an application for opening a Type “C” owner trading securities account (Form GF085).
How to open a Type “C” account: Owner Trading Securities Account. NSD?
If a NSD-cleared non-resident trading securities account (securities account type code: ТS) was opened before 5 March 2022, then the corresponding Type “C” owner trading securities account (securities account type code: UТ) shall be opened on the basis of an internal instruction; no application is required. This account with NSD can be opened by foreign securities holders.
If a foreign nominee trading securities account was opened before 5 March 2022 (securities account type code: ТF or ТW), there is no need to open a new trading securities account. The same securities accounts will be used for NSD clearing. In the future, in order to open a trading securities account, clients shall submit an application for opening a Type “C” owner trading securities account (Form GF085).
Which transactions using the Type “C” securities account are allowed?
The following securities can be credited to the Type “C” securities account:
- securities purchased with funds held in Type “C” bank accounts, special Type “C” broker accounts, Type “C” clearing bank accounts;
- securities transferred from other Type “C” securities accounts;
- securities for which the settlement is carried out through Type “C” bank accounts due to the corporate actions executed in respect of such securities;
- securities erroneously debited from a Type “C” securities account;
The following securities can be debited from the Type “C” securities account:
- securities transferred to Type “C” securities accounts, including securities purchased with funds held in special Type “C” broker accounts, Type “C” clearing bank accounts;
- securities debited from Type “C” securities accounts as a result of their redemption;
- securities, the debiting of which from the specified account is allowed in accordance with the issued permission;
- securities erroneously credited to a Type “C” securities account.
Shall clients reflect the income of their non-resident customers on a Type “C” cash account opened with NSD?
In accordance with paragraph 1.7 of the Resolution of the Bank of Russia Board of Directors dated 11 March 2022, “with regard to transactions made between Type “C” bank accounts opened with credit institutions, only transactions with Type “C” correspondent accounts of the respective credit institutions opened with NSD shall be reflected”. The Resolution of the Bank of Russia Board of Directors dated 11 March 2022 is subject to execution by all securities market participants and credit institutions. NSD pays income due to customers of NSD's clients to correspondent accounts of NSD's clients (credit institutions) or special securities accounts of NSD’ clients (non-credit institutions) in accordance with the bank details registered by these clients for receiving income.
NSD's clients shall independently analyze current regulatory requirements and the operations of their customers, and, if necessary, make (initiate) transfers of funds corresponding to the income held on Type “C” bank accounts opened by their customers to the relevant Type “C” correspondent accounts with NSD.
How do clients participate in corporate actions with securities held in Type “C” securities accounts?
Clients' participation in mandatory corporate actions with securities held in Type “C” securities accounts is not limited, the procedure for participation has not changed. The crediting and debiting of securities and funds related to corporate actions is carried out via Type “C” securities and bank accounts.
Does NSD accept non-Russian securities for servicing?
Currently, NSD has suspended the acceptance of all non-Russian securities for servicing, except for the securities of issuers from the CIS countries, which are accepted for servicing as usual.
How does NSD provide Information Services?
The current restrictive measures that apply to NSD do not affect Information Services. NSD continues to provide services as the official data source replacing Bloomberg and Refinitiv.
Are there any significant changes in terms of taxation with respect to U.S. securities?
Some clients have no up-to-date GIIN. If a client of NSD has no status of FATCA-compliant financial institution, i.e., if such client is a Nonparticipating FFI (NPFFI), income payments on U.S. securities due to both the client and its customers will be subject to 30% tax under Chapter 4 of the U.S. Internal Revenue Code.
If you have any questions, please NSD by phone: +7 495 956-27-90, +7 495 956-27-91 or send your questions by email to your account manager at NSD or to: .