Operations in ICSD — NSD Service
General Information

To carry out settlements with foreign securities, these securities must be accepted for servicing in ICSD and NSD.

NSD offers the following types of settlements through ICSD:

Settlements with counterparties in Euroclear Bank, Clearstream Banking
Settlements with counterparties on local markets using NSD accounts in Euroclear Bank, Clearstream Banking

If necessary to carry out settlements in other foreign currencies, the client may contact NSD with a letter in free form indicating the currency in which they would like to conduct settlements. After receiving such request, NSD will consider the possibility of organizing settlements in other currencies.

Permissible currencies for DVP settlements with counterparties on local markets are specified in the description of settlement features for each specific local market.

Advantages
Technology
Single instruction for settlements, automatic instruction processing (Full STP)
Reliability
Movement of cash and securities is linked to settlements of corresponding transactions
Efficiency
Ability to use acquired securities for operations with Bank of Russia
Accessibility
Competitive tariffs
Adaptation of NKO AO NSD activities to CSDR Settlement Discipline Regime norms

Central Securities Depositories Regulation (CSDR) — European Parliament regulation on improving securities settlement procedures in the European Union and regulating central securities depositories activities. Adopted by European Parliament on July 23, 20141.

Settlement discipline regime (SDR) — section of CSDR that defines regulatory standards for applying measures to improve settlement procedures for transactions on European securities markets, united by the concept of "settlement discipline". Technical requirements for SDR implementation (Regulatory Technical Standards on Settlement Discipline) were adopted by European Commission on May 25, 20182.

Measures provided by CSDR SDR regarding settlement procedures for transactions on European securities markets apply to all settlement participants in European (I)CSDs.

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NKO AO NSD, being a client of European ICSDs, Euroclear Bank and Clearstream Banking, adapts its operational activities according to updated requirements and rules for carrying out settlements in (I)CSDs.

Changes will affect NSD depositors who use services for carrying out settlements in European (I)CSDs.

Technical requirements for CSDR Settlement Discipline Regime regarding cash penalties came into force on 01.02.2022.

Technical requirements for CSDR Settlement Discipline Regime regarding cash penalties came into force on 01.02.2022.
Information presented in the section is valid as of the publication date and will be updated as relevant data changes regarding adaptation of NSD operational activities to CSDR Settlement discipline regime requirements.
Foreign Securities Trading on Moscow Exchange
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For conducting operations on FOP terms

For conducting operations on DVP terms

For executing operations on DVP terms, opening special sections on the owner's securities account, trust manager's securities account or nominee holder's securities account is not required. Securities can be credited/debited to/from any sections of securities accounts of these types at NSD, if this does not contradict the functioning rules of sections of a specific type. The exception is UK securities, the features of crediting which are described in the section devoted to local markets.

Conducting operations on DVP terms through securities account operator/section operator/trustee

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1 If necessary to maintain separate accounting of securities of a specific client of the depositor on the nominee holder's securities account.

2 The securities account/section operator or trustee of the securities account can register details of their bank account at NSD only to that account/section of the securities account (applicable to the operator) for which they are appointed operator/trustee. For this, it is necessary to provide an application for bank account registration and an instruction for bank details registration in form AF005 with attachment of bank details notification in form GF088 (operation code 07, purpose code 10).

When conducting operations on DVP terms in ICSD (international clearing organizations) on the securities account, section or sections of the securities account to which an Operator is appointed, settlements may be made through the Operator's bank accounts opened at NSD. The procedure for opening a bank account is described on the NSD website in the "Banking Services" section.

A detailed description of the work scheme through the securities account operator/securities account section operator is available on the NSD website as "User Guide for Working Through Securities Account Operator".

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