Planning ahead

Wed, 05/07/2017

The Russian CSD intends to launch securities lending services. By Ksenia Liskina, Relationship Manager, GSS Russia                                                                                                                                                                         

The National Settlement Depository (NSD), the Russian Central Securities Depository, has announced their plans to develop a securities lending service in anticipation of future demand by international investors, mainly foreign banks that are interested in options to facilitate securities settlement. Securities lending may also be relevant to Russian brokers who execute short selling.

At present, NSD is discussing this project with securities market participants. It can technically be implemented within a one year period according to NSD. At the same time, implementation may be delayed due to legislative changes to reflect the nature of securities lending. Currently a mechanism resembling securities lending exists via REPO transactions, where the transfer of securities from one account to another results, de jure, in the transfer of rights on these securities with the obligation of their repurchase and no mechanism to reflect the securities as a borrowed instrument exists according to Russian legislation.


Ksenia Liskina
Relationship Manager
Ksenia.Liskina@unicredit.ru