NSD Introduces New DVP Service

MOSCOW – Starting 15 October, National Settlement Depository (NSD), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, launches the new Delivery Versus Payment (DVP) services with settlements on securities and cash legs on a net basis. The services will be associated with transactions concluded in the OTC market. The new service has been introduced in line with NSD’s efforts on improvement of securities settlement technologies. This is a final stage of integration of NSD, DCC and RTS Settlement Chamber which will be completed in late 2012; during this stage DCC’s and RTS Settlement Chamber’s clients will have the opportunity to transfer their settlements on OTC transactions denominated in foreign currency to NSD.

Until the 2012 end the service will be provided to DCC’s clients conducting DVP settlements in rubles and foreign currency using their bank accounts opened with RTS Settlement Chamber (except for settlements in foreign currency held by Russian residents-non-credit organizations) and to new NSD’s customers who plan to conduct DVP settlements in rubles and foreign currency using their bank accounts opened with NSD (except for settlements in foreign currency held by Russian residents-non-credit organizations).

The new service allows the clients to settle securities and cash legs simultaneously. Among the new service’s advantages are:

•  Convenient time schedule (settlements may be conducted after end of trading on Moscow Exchange;
•  Minimized default risk for both parties of the transaction;
•  Use of universal clearing orders on funds and securities;
•  Settlements on all types of securities taken into NSD’s custody;
•  Quick transfer of securities for trading;
•  Full straight-through processing (STP);
•  Highly competitive fixed rates which are not based on transaction amount;
•  Settlements conducted on the basis of DCC’s DVP settlements.

It is supposed to conduct settlements using DVP-1 model (both the securities and cash legs are settled on a gross basis), DVP-2 model (the securities leg is settled on a gross basis; the cash leg is settled on a net basis), and DVP-3 model (both the securities and cash legs are settled on a net basis).

On 1 January 2013, DCC will stop providing settlements on a DVP basis. The date of the last settlements denominated in foreign currency by DCC is 28 December; the last ruble settlements will be carried out by DCC on 29 December. NSD clearing fees will be not collected during the promotional period (until the end of 2012).
More information is available at NSD’s web site (in Russian).

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: www.nsd.ru , or NSD Public Affairs Division: +7 495 232 0910,