NSD considers a standard settlement cycle for the OTC market.
The National Settlement Depository, Russia’s Central Securities Depository, is discussing plans to formally introduce the standard settlement cycle for all types of OTC transactions.
NSD’s proposal involves the use of best practices of European central depositories, which foresee that the settlement of the majority of transactions concluded on the OTC market shall occur on the second business day after T, namely T+2.
It is worth noting that starting from 2013, the Moscow Exchange has been applying the T+2 settlement cycle to trading in shares, depositary receipts, fund shares, ISUs and ETFs, as well as USD denominated bonds.
Yuliya Shibukova
Relationship Manager
GSS Russia