1. Securities transfer with control over money settlements on basis of counter depository orders by the Participants without submission of payment orders for money transfer issued by the Participants-recipients of securities to NSD
Starting 3 May 2011 during execution of transfers on basis of counter orders by NSD's Participant-transmitter and NSD's Participant-recipient of securities with control over money settlements in the course of OTC transactions, NSD's Participants with bank accounts opened with NSD may conduct operations with securities and cash assets on basis of counter depository orders for securities transfer with control over money settlements in form MF170 without submission of a payment order for money transfer.
For conducting of settlements using new technology the Participant-recipient must conclude with NSD an addendum to the bank account agreement stipulating specifics of execution of payment orders while provision of securities transfer services with control over money settlements, and must submit a Power of Attorney (PoA) stipulating the Participant-recipient's powers to sign depository orders and documents connected with disposition of cash assets in bank accounts with NSD specified in the PoA.
NSD's Participants may also conduct securities transfers with control over money settlements during settlements on OTC transactions on basis of counter orders and payment order for money transfer issued by the Participant-recipient.
The new technology allows the Participants:
- to optimize time expenditures for preparation of orders submitted to NSD
- to submit to NSD just one document ЁC an electronic version of a depository order containing information necessary for transfer of securities and money;
- to use the same software for preparation and submission of a depository order to NSD
2. Reconciliation of depository orders on basis of a reference and a transaction date
Starting 3 May 2011 during execution of securities transfers on basis of counter orders issued by the Participant-transmitter and Participant-recipient of securities without control over money settlements, NSD's Participants may select details of counter orders which shall be reconciled by NSD in the course of execution of depository operations:
- An automatic reconciliation of counter depository orders is implemented; in the course of this reconciliation two new parameters are compared: a reference and a date of the transaction. Details indicated by the Participants in the field "Grounds" will not be considered during reconciliation. The details of the document shall be indicated in the reports submitted by NSD to the Participants.
- The previous reconciliation procedure remains in effect; according to this procedure the Participants do not complete the fields "Reference" and "Date of Transaction" in the depository order; in this case the details of the document being grounds for transfer which were indicated in the field "Grounds" of the depository order (in particular, the document's number and date) shall represent one of key reconciliation parameters.
An introduction of the new technology of counter depository orders reconciliation on basis of reference and transaction date will allow to reduce risks of non-fulfillment of obligations by the counterparties.
After introduction of the new technology of securities transfers with confirmation on basis of counter depository orders the Participants shall receive additional reports as follows:
- in case of revealing of discrepancies after reconciliation ЁC a report specifying the unmatched fields of the depository orders;
- an initiator of the order receives a notice about absence of a counter order, if the counterparty failed to submit the counter order;
- a counterparty receives a notice about presence of a counter depository order jointly with information about its depository order's parameters.
About NSD
National Settlement Depository (NSD) is the largest settlement depository in Russia, a part of the MICEX 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: www.nsd.ru , or NSD Public Affairs Division: +7 495 232 0910,