Septem Capital and UNIVER Capital have become the first companies on the Russian market to settle a transaction in commercial papers via the debt market’s OTC system.
Previously, market participants had to fill out instructions to conduct DVP clearing operations in National Settlement Depository (NSD); now, data that are required to create an instruction are automatically sent to NSD once an agreement has been concluded on the OTC system of the Moscow Exchange’s debt market. This scheme dramatically facilitates securities settlements.
“Commercial papers allow an issuer to simply and quickly attract funds from qualified market participants instead of bank loans. Given the growing demand for this tool, the Moscow Exchange and NSD proposed the timely and useful market solution. It is evident that we have made another step towards increasing the liquidity of commercial papers,” said Denis Kozlov, Managing Director for Broker Operations, Septem Capital.
“When commercial papers were offered to the Russian market, small- and mid-sized companies received a tool to attract funds from the OTC market. Currently, the financial market is evolving towards digitalization and provides investors with more convenience and opportunities. Following this trend, Moscow Exchange Group companies improved services related to commercial papers. This will let market participants mitigate risks and save time,” pointed out Konstantin Tsekhmistrenko, Managing Director for Corporate Finance, UNIVER Capital.
“The commercial paper market is quite mature. It is still one of the most popular ways to quickly borrow funds on the securities market using reliable infrastructure. NSD invites Moscow Exchange Group’s clients to try a new method for automatically transmitting data for commercial paper settlements. They will reduce their operational risks, strengthen the payment discipline, and accelerate the information exchange between trading units and the back office,” added Denis Buryakov, Managing Director for Depository Operations, NSD.