National Settlement Depository (NSD), Russia's central securities depository, announces its implementation of the back-to-back settlements technology for off-exchange DVP transactions (in Russian rubles, USD, Euro, or CNY) with securities.
Back-to-back settlements allow for mitigation of settlement failure risk by means of netting the parties’ liabilities within a general pool of instructions to settle the instructions that could not be settled individually due to the lack of assets required for execution of such instructions at the beginning of a clearing session.
NSD’s standard clearing service fees are applicable with this technology. There is no need to sign up for this service, the NSD system automatically detects the possibility of conducting settlements using this algorithm.*
* — More information about the service is available at the company’s website.