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

20 May 2015
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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 CPMI-IOSCO Principles for Financial Market Infrastructures (PFMIs). Infrastructures are expected to undertake regular self-assessments in order to establish their degree of observance of the PFMIs, using the Disclosure Framework and Assessment Methodology published in 2012.

The results of the analysis show that, NSD is ‘broadly’ observant overall of the CPMI IOSCO PFMIs. Of the 24 Principles, NSD ‘fully’ observes 6, ‘broadly’ observes 10, ‘partly’ observes 2 (Principle 7 on measuring, monitoring, and managing liquidity risk, and Principle 9 on money settlements in central bank money) and there are 6 Principles not applicable to NSD’s operations . There are no Principles that NSD does not observe. It’s worth mentioning that since 2015, NSD has launched settlements via the Bank of Russia’s BESP (RTGS) system in line with Principle 9 on money settlements in central bank money, however, at the time of validation settlements via the BESP system were at the pre-launch stage.

Eddie Astanin, Chairman of the Executive Board of NSD, said “The Russian CSD is actively integrating into the global financial infrastructure, and ensuring the compliance with common standards and rules is the key to our success in this direction. NSD has been supervised in order to establish the degree of observance of the PFMIs for the second year in a row. Last year’s supervision brought us a number of valuable recommendations related to the expectations of foreign investors for our risk management system, and we have managed to implement these recommendations. The results prove the stability of the settlement infrastructure of the Russian market”.

Simon Thomas, CEO and Chief Ratings Officer of Thomas Murray said: “Thomas Murray have confirmed the changes made by NSD to improve its level of observance of the CPMI IOSCO PFMIs. We have seen improvements in some areas in particular in Principle 20 which was upgraded from Broadly Observed to Fully Observed and we expect further developments as NSD continues to implement its strategy in the next few years, for example by introducing settlement in central bank funds in 2015. We look forward to continuing our work with NSD to validate its level of observance.”


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 Market Infrastructures (CPMI) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) to review and update the standards for FMIs. All CPMI 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 Market Infrastructure (CPMI) is a part of the Bank for International Settlements. The CPMI 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.

For further information contact:

Konstantin Bereza

Press Service
National Settlement Depository (NSD)
+7 495 232-05-13, ext. 4657

Jim Micklethwaite

Director, Capital Markets
Thomas Murray
+44 (0) 208-600-2300  

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.

2 — Principle 20: An FMI that establishes a link with one or more FMIs should identify, monitor, and manage link-related risks.

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