Starting 19 June 2017, the Moscow Exchange will provide participants with the opportunity to conclude exchange repo transactions with the Bank of Russia. These transactions will be settled by National Settlement Depository (NSD), Russia’s central securities depository, and backed by NSD’s collateral management system (CMS).
Government and corporate bonds from the Bank of Russia’s Lombard List are used as collateral in repos with CMS. The CMS allows for the automatic selection of collateral, replacing securities in the basket, and processing corporate actions associated with securities involved in the transactions.
Alina Akchurina, Managing Director for Collateral Management and Tri-Party Services, NSD, commented on the product launch: “Combining the exchange repo platform with NSD’s automated collateral management system will give market participants numerous additional advantages, including the use of the securities basket, as well as the convenient conclusion of transactions and flexible collateral management via the Exchange’s terminal.”