MOSCOW – National Settlement Depository (NSD), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, reports that it has completed the next stage of the technological preparation to operate as a central depository; the preparation included implementation of the company's new automated system of electronic cash settlements (ASECS).
The new settlement system functions on the basis of Hewlett-Packard Integrity servers. During the implementation process, the company switched from Informix database management system to Oracle, NSD's standard data management system for basic industrial systems. ASECS's progressive architecture based on Processware Integration Environment (PIE) is a new platform allowing to speed up implementation of new settlement functions, to minimize operating risks by means of enhanced automation of processes, to meet the clients' requirements in respect of reliable interactions with NSD.
ASECS has been developed jointly by NSD and CMA Small Systems AB (Stockholm, Sweden). СМА's solutions have been used in a number of large scale international projects launched by central banks, stock exchanges and central depositories.
Alongside with implementation of the Alameda, a new depository platform, which took place in 2011, and the AESCS implementation conducted this year, NSD put into operation the new multi-functional monitoring and management system - Oracle Enterprise Manager Grid Control 11g. NSD plans to develop its modernized IT system for providing continuous cash and securities settlements when the number of documents grows and technologies of settlements in on-exchange and OTC markets get more complicated.
To provide emergency planning for continuous operations, NSD formed a division responsible for the Business Continuity in late 2011. NSD modernized the depository's back up systems to provide a full back up of core business processes identified by way of using the Business Impact Analysis, an international methodology. The modernization resulted to a two fold expansion of the depository's back up office, a large scale increase in the cable network, zoning of the back up office area with regard to the employees' activities and their efficient interactions in emergency situations, as well as a back up of technical means allowing to conduct depository operations. Since 2011, NSD carries out stress tests regularly; a testing session usually involves operations of the modernized back up office, checking of functionality of all existing and back up workplaces, systems and telecommunications channels. The stress testing program involving not only NSD staff but also the company's clients allows the company to train employees how to act in emergency situation including during evacuation from NSD's head office. For the first six month of 2012 NSD conducted five large scale stress tests; the last one was held in June.
The tests' results approved by international observers NSD's capability to conduct uninterrupted settlements in on-exchange markets and interactions with the Bank of Russia either from the head office or from the back up office in a case of emergency.
To improve information security with regard to forthcoming assignment of a central depository status to NSD, the company implemented the newest systems meeting the standards of global financial centers' national depositories. NSD's information security is guaranteed by the increased level of protection and unique structure of the corporate network, inter-network shielding and filtering of protocols and packets during the work with public networks, by domain security policies, separate ways of authorization and access to resources, cryptographic protection, two-factor authentication while accessing basic systems, ongoing monitoring of information security, immediate reaction to accidents, as well as the Information Security Service's involvement in efficient use of the information protection systems and control over the employees' abidance by the information security rules. The company also successfully completed a project aimed at implementation of the system of record keeping, management and audit of identification means and storage of key information based on e-Token.
Eddie Astanin, Chairman of the Executive Board, NSD, said: “Modernization of the IT system, provision of safety and continuity of NSD's business is an absolute priority; you can see it in our capital investments structure – we spent over RUB100 million on IT modernization in the previous year.”
About NSD
National Settlement Depository (NSD) is the largest settlement depository in Russia, a part of the Moscow Exchange Group, servicing on-exchange and OTC transactions with all types of debt and equity securities of Russian issuers and providing settlement services to participants in financial markets of the Russian Federation.
NSD provides storage of global certificates and depository accounting for 99% of corporate bond issues, sub-federal and municipal bond issues. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, more than 99% of transactions conducted in the corporate and regional bond markets, the majority of transactions with equities and also services UIT units and securities of foreign issuers.
In accordance with agreements concluded between NSD and the Bank of Russia, NSD acts as a settlement center for the organized securities market.
NSD is Russia's national numbering agency and the substitute numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.
For further information about NSD: http://www.nsd.ru/ , or NSD Public Affairs Division: +7 495 232 0910,
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