MOSCOW – National Settlement Depository (NSD), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, announces that on 26 December it concluded a first “settlement REPO” transaction as a securities lending agent. CJSC ALOR INVEST acted as a lender, and OTKRITIE Bank (JSC) acted as a borrower. To conclude the transaction the participants selected JSC GAZPROM shares as an asset for settlements, and OAO LUKOIL shares were selected as a collateral asset.
The “settlement REPO” technology of securities lending allows NSD customers to solve a problem of a lack of securities necessary for fulfillment of the clients' obligations to supply securities. The technology represents a set of services and integrates the following:
- Capabilities of the EDI system related to processing REPO transactions by means of exchanging in transient electronic documents between NSD customers on basis of bilateral general REPO agreements concluded in NSD's EDI system
- New capabilities of NSD's depository recordkeeping providing selecting (marking) of the clients' securities available for the settlement REPO transactions as a settlement and/or collateral asset considering the client's willingness to handle marked securities (if securities are not blocked)
- New NSD's information services related to preparation of models of settlement REPO transactions and connected settlement documents.
NSD provided the opportunity to use this service in November 2011.
About NSD
National Settlement Depository (NSD) is the largest settlement depository in Russia, a part of the MICEX-RTS 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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