The Finance Committee of the Leningrad Region Conducts Debut Placement of Temporarily Available Funds via Repos Using CSD’s Collateral Management System

02 March 2021
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Another constituent entity of the Russian Federation – the Finance Committee of the Leningrad Region – has connected to the platform to service repos via the collateral management system (CMS) of National Settlement Depository (NSD). On 26 February 2021, during a pilot auction, the full amount of funds (RUB 200 million) was placed by the Committee. Severgazbank participated in the pilot placement.

Repo trades are an instrument which allows Russian constituent entities to place temporarily available funds effectively and safely using federal loan bonds (OFZ) as high quality collateral. Services provided by NSD allow lenders to manage their risks by evaluating collateral sufficiency, maintaining its level, and conducting safe DVP settlements.

Roman Markov, First Deputy Chairman of the Government of the Leningrad Region, Chairman of the Finance Committee, said: “Repo trades backed by NSD’s services will let us effectively and reliably place temporarily surplus funds of the Leningrad Region among credit institutions, using the financial market’s newest digital infrastructure.”

“Our collateral management technologies, as well as technologies that ensure safe clearing operations and settlements of repo trades are used by many financial market participants to place funds. NSD services repo trades of the Bank of Russia, the Federal Treasury, and the Finance Committee of St. Petersburg. The NSD platform is ready to service new participants, and we are happy to see that the Finance Committee of the Leningrad Region has joined our infrastructure,” pointed out Alina Akchurina, Managing Director for Collateral Management Systems Development, NSD.

NSD launched the platform for servicing repo trades via the collateral management system in 2013. It expands the trading and settlement options of financial market participants and minimizes their risks and costs. Since its launch in 2013, assets worth more than RUB 278 trillion were placed using NSD’s CMS platform.

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