NSD Launches Electronic Matching Service

National Settlement Depository (NSD), Russia’s central securities depository (CSD), is in the midst of a phased launch for a new electronic matching services for OTC transactions, whereby client can receive information about potential counter instructions for OTC transactions.
By Jake Safane(2147484770)
National Settlement Depository (NSD), Russia’s central securities depository (CSD), is in the midst of a phased launch for a new electronic matching services for OTC transactions, whereby client can receive information about potential counter instructions for OTC transactions.

In OTC transactions, participants might have to spend time looking for a counter instruction if the partie’s instructions do not match, such as if the parties enter a different number of securities. With the electronic matching services, NSD can speed up the process of searching for counter instructions for settlements, as the system compares all instructions automatically and informs clients which field in the instructions does not match.

The first stage of the project launched this week, with services including electronic matching by transaction date, reports on matching by transaction date, and transferring full information about the counter instruction through SWIFT or NSD’s own channels.

Then on December 22, a hold and release mechanism will be launched, allowing instructions to be sent only to match without making a transaction. This “mechanism will be available for use at all stages of the instruction processing until the date of settlements on the transaction,” says NSD.

In 2015, NSD will also allow for the use of alternative brief identifiers for depository accounts during interactions with NSD.

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