Dear Clients!
Due to numerous Clients’ requests National Settlement Depository (hereinafter – NSD, Repository) informs you on the following.
Bank of Russia’s Directive 3253-U dated 30 April, 2014 (text, in Russian; explanatory note, in English) contains the provision which stipulates that ‘if one party of a contract (trade), concluded on the terms of master agreement is a foreign entity, repository services to the second party of a contract (which is a Russian legal entity) may be provided regardless of providing repository services to foreign entity’ (see the clause 6, second paragraph of the Directive). At the same time market participants – foreign entities which have entered into the Agreements on the terms and conditions for the provision of repository services with NSD and which have registered information on master agreements and contract in the Repository’s Contract register are still obliged to perform all their duties as for Repository (including timely payment for the latter’s services) as for their counterparties in accordance with the Terms and conditions for the provision of repository services (hereinafter – the Terms).
Please be advised that if a Repository Client – a foreign entity has decided to stop providing information to the Repository in accordance with the Russian legislation, such Client – a foreign entity shall:
- terminate the Agreement on the terms and conditions for the provision of repository services with NSD in accordance with the clause 2.4.3.7.7 of the Terms;
or - change the reporting procedure by allowing its counterparties – Russian legal entities to report information to the Repository unilaterally and by providing NSD with the Notification on rejection to submit information to the Repository (document code CM012 of Appendix 1 to the Terms).
Foreign entity which stopped reporting to the Repository without complying with the terms above violates the terms of the Agreement on the terms and conditions for the provision of repository services and the Terms and does not allow its Russian counterparty to fulfill its reporting obligations.
In order to avoid such situation, NSD recommends foreign Repository Clients:
- to consult with its Russian counterparties in case a decision to stop reporting was made;
- contact NSD representatives in order to receive detailed information on Agreement on the terms and conditions for the provision of repository services termination procedures.
For the questions on repository services please use the contacts provided on NSD’s website.
See the Repository messages specifications on a specialized web site.