A Client may delegate the authority to deal with a securities account or securities sub-accounts to a securities account operator or a securities sub-account operator (an "Operator").

An Operator must be an organization, other than the Client owning the securities account in question, and must be authorized (either by the Client, or by law) to give instructions to make transactions in one or more than one securities sub-account.

One of the conditions for the opening of an owner securities account for a person who, in accordance with Article 25 (paragraph 1) of Federal Law No. 414-FZ dated 7 December 2011 “On the Central Securities Depository”, must delegate his right to give instructions with respect to his owner securities account to a professional securities market participant, is the mandatory delegation by such person of his rights to give instructions to make transactions in the owner securities account to another organization, a securities account operator, which is a professional securities market participant that meets the eligibility requirements set forth by the Terms and Conditions of Depository Operations of NSD.

An Operator may be designated for certain pre-defined sub-account types or for particular sub-accounts (a "Sub-account Operator"), or for all sub-accounts of a securities account (an "Account Operator").

An Account Operator must be an organization that meets all of the following eligibility requirements:

  • An Account Operator must be NSD's client being a professional securities market participant and meeting NSD's eligibility requirements to Operators.

To designate an Account Operator, the Client is required to submit to NSD a power of attorney (FormD020) describing the Operator's authority.

A Sub-account Operator must be an organization that meets all of the following eligibility requirements:

  • A Sub-account Operator* must be designated strictly in compliance with the rules applicable to the particular sub-account, as prescribed by the terms and conditions of the issuance of, and dealing with, securities, the Russian laws, and agreements with issuers.
  • A list of Operators of a particular sub-account type is determined by NSD in accordance with the Russian laws, agreements with market operators or clearing houses, or the Agreement. In such cases, the Client may only designate a Sub-account Operator from the list of Operators eligible to be designated in accordance with the Agreement.

To designate a Sub-account Operator, the Client is required to submit to NSD a power of attorney (FormD020) describing the Operator's authority.

* For a non-Russian resident organization to be designated as Sub-account Operator, NSD's prior approval is required.
The Sub-account Operator is required to enter into an Electronic Data Interchange Agreement and submit the necessary set of documents.

When making transactions on a DVP basis at ICSDs in a securities account or a securities sub-account(s) for which an Operator is designated, it is possible to make settlements through the Operator's bank accounts held with NSD. The procedure for opening a bank account is described here.

An Operator may be removed by the Client by revoking the power of attorney issued to the Operator or as a result of its expiry. The revocation of the power of attorney must be notified by the Client to the Depository in the form of a formal letter signed by a Client’s authorized representative.

The Depository is not liable to the Client for any acts performed by the Operator in accordance with the powers vested in the Operator by the Client.

By working through an Account Operator, an organization that is not a professional securities market participant is able to:

  • Open an owner securities account directly with the central securities depository that acts as settlement depository for the Moscow Exchange and the St. Petersburg Currency Exchange;
  • Settle securities trades made on the Moscow Exchange, St. Petersburg Currency Exchange, or in the OTC market;
  • Speed up the receipt of dividends, coupon income, redemption proceeds, or other distributions on securities, as paid by issuers to securities owners; and
  • Use the electronic data interchange process that contributes to risk and cost reduction.

General rules of giving instructions:

Interaction with NSD Client Account Operator Sub-account Operator
Originator of an instruction for a book-entry transaction/clearing transaction No Yes Yes
Originator of an instruction for an administrative transaction
  • Registration of, or making changes in, a details form (transaction codes: 05, 06)
Yes No No
  • Opening/closing a securities sub-account1 (transaction codes: 90, 91)
Yes Yes Yes
  • Registration of bank account details (transaction code: 07)
Yes Yes No2
  • Changing a securities account/sub-account parameters (transaction code: 93)
Yes Yes Yes
  • Cancellation of an instruction (transaction code: 70)
Yes Yes Yes
  • Changing the standard method of delivery of statements (transaction code: 97)
Yes Yes No
Originator of an instruction for an information-related transaction Yes Yes Yes

1 If a sub-account of the particular type may be opened/closed (transaction code: 90/91).
2 A Sub-account Operator may give an instruction for registration of bank account details for the purpose of making settlements on a DVP basis (transaction code: 07, purpose: 10).

General rules of delivery of statements/notices:

Statements Recipient
Instruction execution statement for a book-entry transaction Both the instruction originator and the Client
Administrative instruction execution statement Both the instruction originator and the Client
Information-related instruction execution statement Instruction originator
Instruction non-execution statements Instruction originator
Statements issued in the course of the instruction execution process (interim statements) Instruction originator
Clearing transaction statements Both the instruction originator and the Clearing Participant
Bills/invoices for services provided Client

Participation in Corporate Actions (CA) using the ISO format:


Person dealing with the securities account/sub-account
CA Notification Participation in CAs using the ISO format  
CA Notification (ISO) The right to give CA instructions? CA Status and Processing Advice
Client Yes
+ html format
Yes Yes Yes, if the person is the instruction originator
Securities Account Operator Yes Yes Yes Yes, if the person is the instruction originator
Securities Sub-account Operator No No No No

Participation in Corporate Actions (CA) with respect to non-Russian securities:


Person dealing with the securities account/sub-account
Participation in CAs with respect to non-Russian securities, using a non-ISO format (with the transfer to sub-account 38 with manual processing)  
CA Notification (html format) Originator of a CA instruction (in hard copy) Instruction to transfer securities to sub-account 38, where necessary CA Instruction Status Advice Securities movement statements (where the CA involves movement of securities)
Client Yes Yes Yes, if there is no sub-account/account operator. No, if there is a sub-account/account operator
No Yes
Securities Account Operator No Yes Yes No Yes
Securities Sub-account Operator No No Yes No Yes, if the movement takes place in a sub-account for which an operator has been designated

Income on securities is paid using the bank account details registered for the Client's securities account in which the securities are held.
The procedure for registration of bank account details for the purposes of payment of income on securities is described in the User Manual for Registration of Bank Account Details posted on NSD's web site here.

The general information regarding the procedure for the receipt of income on securities is available here.

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