JSC Transfingroup Asset Management Company (TFG AMC) and JCB Absolut Bank (PJSC) became the first companies in the Russian market to have conducted a transaction via the centralized system for record-keeping and distributing Unit Investment Trust (UIT) units. The system was developed by National Settlement Depository (NSD), Russia’s central securities depository.
The transaction was conducted in the automatic regime using NSDirect, NSD’s unified web client, to which both parties had been connected. TFG AMC received from NSD’s nominee a request to purchase UIT units “TFG-Ruble bonds” in the form of an electronic document verified by an nominal holder NSD electronic signature. An instruction to submit the request and a depository instruction were prepared by a broker – Absolut Bank.
To date, five companies have connected to the system, and six firms are using it in a trial mode.
NSD’s UIT Unit platform allows users to get access to operations with the UIT units for all asset management companies connected to the system and to automate interactions between brokers and asset management companies.
NSD has a wide correspondent network: it has opened nominee accounts with 650 registers of UIT unit holders; 460 nominees-depositories are NSD clients.
After the launch of the centralized scheme, brokers and nominees will have the opportunity to provide end investors with access to the operations with any UIT units of any asset management company connected to the system. In turn, asset management companies can place their UIT units by using the new system’s open architecture for sales without making agreements with brokers. Thus, the technological platform introduced by NSD allows brokers and asset management companies to unify their client bases and offer their clients’ new services.