MOSCOW – On 15 April, National Settlement Depository (NSD), Russia’s central securities depository, launched a new service related to the Bank of Russia’s off-exchange tri-party repo transactions with a basket of securities with collateral management, clearing and settlements. During the first day of the new system’s operations, the Bank of Russia has concluded 11 transactions with ING Commercial Banking, JSCB N.A.B., CB RIAL-CREDIT (Ltd.) and JSCB DERZHAVA; NSD has selected collateral and conducted settlements on these transactions.
The transactions are conducted for the participants who have concluded with the Bank of Russia general agreements on repo transactions in Russia’s OTC market using Bloomberg system. In respect of repo transactions, NSD is responsible for selection of collateral and collateral management.
The collateral management system developed by NSD will contribute to improved liquidity of the market and reduced expenses of the market participants during concluding repo transactions with the Bank of Russia. The new technology will allow to select the optimal collateral for repo transactions, to replace securities, to automatically replace collaterals prior to corporate actions, and to hold margining on the pool of all transactions. The collateral management system has been developed on the basis of the experience of other international settlement and clearing organizations; it does not have analogues in Russian market.
Previously NSD’s Supervisory Board has established tariffs for clearing operations and collateral management. The Management Board of the company has set a promotional period for these operations until 1 June 2013; during the period, the tariffs are reduced by 50%.
The settlements are to be held in three clearing sessions and to allow partially execution of the first part of the repo transaction.
National Settlement Depository (NSD) is the central securities depository of the Russian Federation, a part of the Moscow Exchange Group. NSD is Russia's national numbering agency and the substitute numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.
The status of central securities depository was assigned to NSD by the Russian Federal Financial Markets Service’s order on 6 November 2012.
NSD holds professional securities market participant license #177-12042-000100 for depository operations issued by the Russian Federal Financial Markets Service on 19 February 2009, license #3294 for bank operations issued by the Central Bank of the Russian Federation on 26 July 2012 and license #077-00004-000010 for the clearing activity issued by the Russian Federal Financial Markets Service on 20 December 2012.
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Supplementary office "Krasnye Vorota": 12, Spartakovskaya St., Moscow 105066, Russia.
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