NSD's electronic data interchange (EDI)

One of the priority areas for improvement of NSD's electronic data interchange (EDI) processes is the active use of the SWIFT System and SWIFT international standards.

The strategy of SWIFT messages introduction into NSD's data interchange is to provide NSD's clients (SWIFT users) with a possibility to use not only electronic documents in the NSD's EDI System to communicate with NSD, but also standard SWIFT messages for an as wide as possible range of depository, clearing, repository, and bank account (settlement) transactions at NSD.

The use of international standards in NSD's EDI processes allows, in particular, to:

  • enhance the quality of customer service thanks to the use of common international messaging standards applied by all of the key operators in the global securities market;
  • provide a background for the establishment of correspondent relationships ('bridges') with the ICSDs (Euroclear and Clearstream) and building effective communication with Russian non-resident clients;
  • receive and process electronic messages prepared in accordance with the requirements of the common international standards;
  • master the technology of straight-through processing of information (from the acceptance of an instruction/order for execution through to the delivery of relevant statements to clients), without involvement of manual processing, to ensure promptness, reliability, accuracy, and continuity of settlement of securities or cash transactions;
  • minimize the quantity of electronic documents used in the NSD's EDI System; and
  • more effectively capitalize on the global experience reflected in the relevant standards when documenting and recording securities or cash transactions (including thanks to a more wide range of transactions and various taxation methods covered by the standards, etc.).

The promotion of the above standards in Russia and the move of Russian financial market participants to such standards would facilitate their communication between each other and with foreign counterparties, which is crucial to enable Russian financial organizations to adapt to the globalization of global financial markets.

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