National Settlement Depository Concludes Independent Validation on its CPSS-IOSCO PFMIs Level of Observance Performed by Thomas Murray

23 May 2014
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MOSCOW, LONDON – Thomas Murray, the specialist research, rating and risk information firm, has provided an independent third-party view in respect of the National Settlement Depository’s (NSD’s) level of observance of the CPSS-IOSCO Principles for Financial Market Infrastructures (PFMIs).

The results of the analysis show that, NSD is ‘broadly’ observant overall of the CPSS IOSCO PFMIs. Of the 24 Principles, NSD ‘fully’ observes 6, ‘broadly’ observes 10, ‘partly’ observes 2 and there are 6 Principles not applicable to NSD’s operations1. There are no Principles that NSD does not observe.

Eddie Astanin, Chairman of the Executive Board of NSD, said: “CPSS IOSCO Principles implementation is one of  NSD’s core tasks in respect of the “Strategy for Risk management development”. The exercise has helped us to identify key areas of focus in order to improve our level of observance of the CPSS-IOSCO’s Principles for FMIs for the next few years, as well as to get independent recommendations, which include expectations of international investors regarding the NSD risk management. NSD Supervisory board and top management always pay close attention to the risk-management system, aimed at securing the sustainable functioning of all NSD information systems and services as a CSD, system-relevant payment services provider, clearing organization and repository. We appreciate the work undertaken by Thomas Murray, as its results have brought an international perspective to our own self-assessment”.

Simon Thomas, CEO and Chief Ratings Officer of Thomas Murray, said: “Thomas Murray is pleased to have worked with NSD in providing our view of the level of observance on the CPSS-IOSCO’s Principles. Our analysis shows that NSD has already incorporated many of the required elements to observe the principles, although there are some areas that require additional improvement. We look forward to continuing our support to NSD”.


Financial market infrastructures (FMI) that facilitate the clearing, settlement, and recording of monetary and other financial transactions play a critical role in fostering financial stability. However, if not properly managed, they can pose significant risks to the financial system and be a potential source of contagion, particularly in periods of market stress. Although FMIs performed well during the recent financial crisis, events highlighted important lessons for effective risk management. These lessons, along with the experience of implementing the existing international standards, led the Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) to review and update the standards for FMIs. All CPSS and IOSCO members intend to adopt and apply the updated standards to the relevant FMIs in their jurisdictions to the fullest extent possible.

The Committee on Payment and Settlement Systems (CPSS) is a part of the Bank for International Settlements. The CPSS is a standard setting body for payment, clearing and securities settlement systems. It also serves as a forum for central banks to monitor and analyse developments in domestic payment, clearing and settlement systems as well as in cross-border and multicurrency settlement schemes.

The International Organization of Securities Commissions (IOSCO) develops, implements, and promotes adherence to internationally recognized standards for securities regulation, and is working intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda. IOSCO's membership regulates more than 95% of the world's securities markets.

1 CPSS-IOSCO Principles include standards and recommendations for all types of financial infrastructure. During validation of NSD Thomas Murray used principles applicable for CSDs.

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