Russia's central securities depository, National Settlement Depository (NSD), is now supporting the Bank of Russia's OTC tri-party repo transactions with a combination of collateral management, clearing and settlement services.
NSD began the service yesterday, facilitating 11 transactions between Bank of Russia and ING Commercial Banking, JSCB N.A.B., CB RIAL-CREDIT (Ltd.) and JSCB DERZHAVA.
The transactions are conducted for participants who have made repo agreements with the Bank of Russia in the OTC market using the Bloomberg system. NSD is responsible for selecting the collateral and conducting settlements for the transactions.
NSD says its tri-party service results in improved liquidity of the market and reduced expense for market participants conducting repo transactions with the Bank of Russia. The technology underpinning the service allows participants to select the optimal collateral for repo transactions, replace securities, automatically replace collateral prior to corporate actions and hold margining on the pool of transactions.