NSD launches DVP settlements model
31 March 2015 Moscow
Image: Shutterstock
The National Settlement Depository (NSD), Russia’s central securities depository, now offers credit organisations the opportunity to conduct settlements using a delivery-versus-payment (DVP) model.
From 30 March, clients can use DVP to settle transactions with securities, using accounts opened with the Bank of Russia. The service takes advantage of the Bank of Russia’s real time gross settlement system, and the NSD’s new clearing platform.
The new service expands the range of services available to NSD clients, and combines the reliability of DVP settlements with flexible cash management. Counterparties can reduce costs related to settlements, mitigating the impact of the bank’s risks on settlement.
Settlements can be conducted between NSD clients’ accounts opened with the Bank of Russia, or between two different accounts, one with the Bank, and another through NSD.
Maria Ivanova, vice president of business development and client relations for NSD, said: “Implementation of the technology of settlement in central bank money is an important step toward development of the market infrastructure, bringing it into compliance with standards, including the international ones.”
“Thomas Murray, the international agency assigning ratings to central securities depositories, takes into account an opportunity of settlement in central bank money provided by a CSD to its clients.”
From 30 March, clients can use DVP to settle transactions with securities, using accounts opened with the Bank of Russia. The service takes advantage of the Bank of Russia’s real time gross settlement system, and the NSD’s new clearing platform.
The new service expands the range of services available to NSD clients, and combines the reliability of DVP settlements with flexible cash management. Counterparties can reduce costs related to settlements, mitigating the impact of the bank’s risks on settlement.
Settlements can be conducted between NSD clients’ accounts opened with the Bank of Russia, or between two different accounts, one with the Bank, and another through NSD.
Maria Ivanova, vice president of business development and client relations for NSD, said: “Implementation of the technology of settlement in central bank money is an important step toward development of the market infrastructure, bringing it into compliance with standards, including the international ones.”
“Thomas Murray, the international agency assigning ratings to central securities depositories, takes into account an opportunity of settlement in central bank money provided by a CSD to its clients.”
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