National Settlement Depository (NSD), Russia’s central securities depository, has launched a new service allowing to process client cross-currency settlements – payment versus payment (PVP-1). This has been the company’s further step towards the development of conversion services and periodic cash transfers (based on standing orders) launched previously.
PVP is a cash settlement principle increasing the reliability of settlements and assuming that a participant’s cash transfer in one currency occurs if another participant’s cash transfer in another currency takes place simultaneously.
The PVP settlement service is provided only to credit organizations. PVP operations can be conducted only with the use of correspondent accounts and trust management accounts opened by credit organizations with NSD. PVP operations are held in Russian rubles, US dollars, Swiss francs, British pounds, Chinese Renminbi and Hong Kong dollars*.
* An up-to-date list of currencies used in PVP operations is available in the Application for opening an account placed on the NSD official website (www.nsd.ru/en).