Russian CSD introduces new DVP service
Starting 30 March 2015, National Settlement Depository (NSD), Russia’s central securities depository, will provide credit organisations with an opportunity to conduct settlements on transactions with securities on the basis of DVP model 1 using correspondent accounts opened with the Bank of Russia.
In international practice, this technology is called settlements in central bank money; it allows reducing counterparties’ costs associated with settlements due to mitigating an impact of commercial settlement organizations’ (banks’) risks on settlements. Therefore, these settlements are mostly held in the course of major transactions.
The new service allows to conduct settlements between NSD clients’ accounts opened with the Bank of Russia or between two accounts, one of which is opened with the Bank of Russia and another one – with NSD.
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