The Russian CSD has taken measures to enhance the technical netting of OTC DVP transactions. By Yuliya Shibukova, Relationship Manager, GSS Russia
The National Settlement Depository (NSD), the Russian CSD, has developed technical netting of cash and securities parties’ obligations during the settlement process of OTC DVP trades concluded in RUB, USD, EUR and CNY. NSD refers to this technical enhancement as back-to-back settlement technology.
Starting from 10 September, the NSD system automatically links sell and buy trades involving securities of the same issue, which cannot be settled on their own due to the lack of relevant assets, after which the NSD settles such trades via netting the parties’ liabilities within a general pool of clients’ settlement instructions sent to the NSD.
The NSD provides technical facility to OTC DVP trades settlement with settlement types DVP-2 (cash netting) and DVP-3 (cash & securities netting), which takes place during 8 clearing sessions run by the NSD at 10:00, 12:00, 13:00, 15:00, 16:00, 18:00, 18:45 and 19:40 (Moscow Time).
The improved technical facility will speed up the settlement process of OTC versus payment trades at the NSD.