National Settlement Depository (NSD) has announced its readiness to launch a Registrar of Financial Transactions (RoFT), a key element of the financial marketplace. On 20 July 2020, the President of the Russian Federation signed Federal Law No. 211-FZ “On Concluding Financial Transactions Using the Financial Platform.” The new law defines the legislative framework for electronic platform operators’ activities, and regulates interactions related to concluding transactions in banking products, services on the insurance market and the securities market.
The financial marketplace is a service that allows users to remotely purchase financial products, such as deposits or insurance policies. A user will be able to compare and select products via financial platforms connected to the system.
The Registrar of Financial Transactions (RoFT) holds a register of legally relevant information about trades concluded within the marketplace perimeter. Information which is stored in the RoFT register will have a “gold record” status. It will let a user have legally relevant verification of a transaction without paper contracts.
Investors who use financial services will view information about all their transactions via the State Service Portal based on a single window principle. A client will be able to send a request via the Portal to receive excerpts from the register which may be used as legally relevant information.
The RoFT was created on the basis of NSD Repository which has registered OTC trades with derivatives and repo trades since 2013 and is the only systemically important repository accumulating more than 95% of information about the Russian market. The NSD Repository has well-developed processes for interacting with financial market participants and processing a large amount of data, and a high level of IT protection.
“We are happy to announce our readiness to put RoFT for the financial service marketplace into commercial operation. The RoFT is a basic element of a trusted environment with the highest requirements for technological reliability and information security; it has no conflict of interests in the financial market. NSD is trusted by the market, has a neutral status and is systemically important financial market infrastructure, which means a strict system of Bank of Russia’s supervision and control. It is important that Marketplace clients will have not just wide 24/7 access to financial products, in particular, by means of lifting geographic restrictions, but also a high level of their funds’ protection and an opportunity to use the unified register of financial assets,” added Anastasiya Kiseleva, Managing Director for Repository Operations, NSD.