Russia’s CSD Partners with CME Trade Repository for OTC Reporting

The National Settlement Depository (NSD), Russia’s central securities depository (CSD), has partnered with CME’s European Trade Repository (ETR), to allow Russian traders to report their over-the-counter (OTC) cross-border securities trades.

It is planned that in April 2015 Russian market participants will be able to provide information about their OTC cross-border trades with European counterparties using NSD as their repository.

Receipt of such reports will begin simultaneously with the launch of the second stage of reporting on contracts that represent derivatives concluded on the basis of master agreements.

During the second stage, the list of reportable derivative trade types will be expanded; information about these transactions will be submitted to the repository. To date, market participants are obliged to submit reports only on OTC repo transactions and currency swaps concluded on the basis of the master agreement.

CME’s ETR is one of six authorized trade repositories under the European Market Infrastructure Regulation (EMIR), and marks the first time Russian traders will be able to report their cross-border trades consistently with the rest of Europe.

On Thursday, NSD launches the first phase for a new electronic matching service for OTC transactions, whereby clients can receive information about potential counter instructions. 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.