Central Depository announced the set up of the conditions for OTC settlement. This is expected to start in February, 2009.
The settlement of the OTC trades will function at the beginning based on an electronic communication system and in the near future via SWIFT.
Receive vs. payment instructions (RVP) will mach with the delivery vs. payment (DVP) instructions from counterparty in the Central Depository. Matching will be confirmed by the Central Depository to both participants. The settlement of securities will be completed on Central Depository and the cash settlement will be made through Central Bank.
D.C.