National Settlement Depository (NSD), Russia’s central securities depository, took part in the 25th International Financial Congress held in St. Petersburg 29 June – 1 July. Eddie Astanin, Chairman of Executive Board, presented a number of initiatives on the qualitative development of different segments of Russia’s financial market infrastructure.
In particular, the Head of the CSD outlined opportunities to develop market utilities services based on NSD’s platform. These services will allow Russian financial institutions to significantly reduce expenses for supporting standard functionality, including maintaining back and backup offices, forming reports, and collateral management services, etc., by outsourcing them to NSD. Mr. Astanin emphasized that the opportunity to use CSD infrastructure would reduce client costs and mitigate their risks, as well as increase their operating margins. To date, NSD has begun analyzing this area’s development potential. The first product for this area emerged in 2016: R.O.S.T Registrar’s backup office was created on the basis of NSD’s office and IT systems for use in emergency situations.
A part of Mr. Astanin’s report was devoted to an important market event: on 1 July 2016, the Corporate Information Center, a single information source for corporate actions, was launched by NSD. Mr. Astanin pointed out that by developing the Corporate Information Center’s functionality, NSD successfully implemented the newest technological solutions. In particular, in April 2016, NSD successfully tested a prototype of the e-proxy voting system based on blockchain technology.
Congress participants paid special attention to NSD’s project for creating an open architecture of UIT units distribution. A new infrastructure for primary sales, exchange, and the repayment of collective investment instruments is being created as part of the project. Unified data interchange formats and standards are being developed by NSD; opportunities for developing new distribution channels and the consequent qualitative growth of Russia’s collective investment market are being created. In 2016, the launch of the first stage of the new service is planned.