National Settlement Depository (NSD), Russia’s central securities depository, has launched a new service allowing to process client cross-currency settlements – payment versus payment (PVP-1). This has been the company’s further step towards the development of conversion services and periodic cash transfers (based on standing orders) launched previously.
PVP is a cash settlement principle increasing the reliability of settlements and assuming that a participant’s cash transfer in one currency occurs if another participant’s cash transfer in another currency takes place simultaneously.
The PVP settlement service is provided only to credit organizations. PVP operations can be conducted only with the use of correspondent accounts and trust management accounts opened by credit organizations with NSD. PVP operations are held in Russian rubles, US dollars, Swiss francs, British pounds, Chinese Renminbi and Hong Kong dollars
National Settlement Depository (NSD) is the central securities depository* of the Russian Federation, a part of the Moscow Exchange Group. NSD was founded on 27 June 1996. On 31 January 2016, the value of securities under custody amounted to RUB 31.6 trillion. The Bank of Russia recognized NSD the systemically important central securities depository, settlement depository and repository. The NSD payment system has a status of the systemically and nationally important system.
NSD offers a wide range of services to its clients including settlement and depository services, registration of the OTC transactions (repository services), information services and collateral management services. As Russia’s national numbering agency and the substitute numbering agency for the CIS, NSD is authorized to assign the international ISIN and CFI codes. NSD acts as a Local Operating Unit (LOU) allowing to assign Legal Entity Identifiers (LEIs) to the company’s clients. The Bank of Russia has assigned to NSD a status of an operator of NSD Payment System (registered name).
NSD conducts all exchange settlements and a major part of OTC settlements, services Russian and foreign securities as central securities depository. Currently, NSD has accounts with central securities depositories and international central securities depositories of eight countries, as well as correspondent accounts with major foreign and Russian banks. NSD services securities issued by the companies representing more than 40 countries. The international rating agency Thomas Murray has assigned NSD an AA- rating as a central securities depository.
For additional information about NSD please visit www.nsd.ru.