NSD ‘broadly’ compliant with PFMIs
20 May 2015 Moscow
Image: Shutterstock
The National Settlement Depository’s (NSD’s), Russia’s central securities depositary, is ‘broadly’ observant overall of the CPMI IOSCO PFMIs, according to an independent third-party review by Thomas Murray.
The analysis provided a view in respect of level of observance of the Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) principles for financial market infrastructures (PFMIs).
Infrastructures are expected to undertake regular self-assessments in order to establish their degree of observance of the PFMIs, using the Disclosure Framework and Assessment Methodology published in 2012.
The results of the analysis show that of the 24 principles, NSD ‘fully’ observes six, ‘broadly’ observes ten, and ‘partly’ observes two – Principle 7 on measuring, monitoring, and managing liquidity risk, and Principle 9 on money settlements in central bank money. There are six principles not applicable to NSD’s operations.
Since 2015, NSD has launched settlements via the Bank of Russia’s Banking Electronic Speedy Payment (BESP) system in line with Principle 9 on money settlements in central bank money; however, at the time of validation settlements via the BESP system were at the pre-launch stage.
Eddie Astanin, chairman of the executive board of NSD, commented: “The Russian CSD is actively integrating into the global financial infrastructure, and ensuring the compliance with common standards and rules is the key to our success in this direction.”
He added: “NSD has been supervised in order to establish the degree of observance of the PFMIs for the second year in a row. Last year’s supervision brought us a number of valuable recommendations related to the expectations of foreign investors for our risk management system, and we have managed to implement these recommendations.”
Simon Thomas, CEO and chief ratings officer of Thomas Murray, commented: “We have seen improvements in some areas in particular in Principle 20 which was upgraded from ‘broadly observed’ to ‘fully observed’ and we expect further developments as NSD continues to implement its strategy in the next few years, for example by introducing settlement in central bank funds in 2015.”
The analysis provided a view in respect of level of observance of the Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) principles for financial market infrastructures (PFMIs).
Infrastructures are expected to undertake regular self-assessments in order to establish their degree of observance of the PFMIs, using the Disclosure Framework and Assessment Methodology published in 2012.
The results of the analysis show that of the 24 principles, NSD ‘fully’ observes six, ‘broadly’ observes ten, and ‘partly’ observes two – Principle 7 on measuring, monitoring, and managing liquidity risk, and Principle 9 on money settlements in central bank money. There are six principles not applicable to NSD’s operations.
Since 2015, NSD has launched settlements via the Bank of Russia’s Banking Electronic Speedy Payment (BESP) system in line with Principle 9 on money settlements in central bank money; however, at the time of validation settlements via the BESP system were at the pre-launch stage.
Eddie Astanin, chairman of the executive board of NSD, commented: “The Russian CSD is actively integrating into the global financial infrastructure, and ensuring the compliance with common standards and rules is the key to our success in this direction.”
He added: “NSD has been supervised in order to establish the degree of observance of the PFMIs for the second year in a row. Last year’s supervision brought us a number of valuable recommendations related to the expectations of foreign investors for our risk management system, and we have managed to implement these recommendations.”
Simon Thomas, CEO and chief ratings officer of Thomas Murray, commented: “We have seen improvements in some areas in particular in Principle 20 which was upgraded from ‘broadly observed’ to ‘fully observed’ and we expect further developments as NSD continues to implement its strategy in the next few years, for example by introducing settlement in central bank funds in 2015.”
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