New NSD developments aim at improving settlement processes and reducing the risk of on-exchange settlement failure.
A number of new developments and applications launched by the NSD will support an improvement of the market environment.
- On 1 February NSD launched an automatic transfer service for securities from off-exchange to on-exchange accounts authorised by standing instruction from a clearing participant. The securities are transferred on NCC special request before the clearing sessions (5:00 pm, 7:00 pm MT) in the total amount available on the off-exchange account.
The service minimises transaction processing time and reduces the operational risks of on-exchange settlement failure as a result of insufficient securities on the on-exchange account. The service will be further improved through the possibility to mark specific securities issues and determine the quantity of securities.
- The NSD web-based tool, WEB-cabinet, currently available for communication between NSD and its clients for corporate action instructions, will be further implemented on the settlement services. This new feature develops the electronic workflow channels of a custodian with NSD that are being used as an alternative and/or contingency to the SWIFT correspondence method.
The implementation of the new function of WEB-cabinet will take place in 4 stages until March 2019. WEB-cabinet will replace the NSD LUCH proprietary system.
- NSD is developing a new messaging format for the interaction between custodians and registrars within the frame of the securities holders’ disclosure process. The new format will allow the transfer of information in a single structured message in order to achieve full STP processing.
Global Securities Services Russia