Russia’s NSD adopts back-to-back securities settlement technology

National Settlement Depository (NSD), Russia’s central securities depository which is part of Moskovskaya Birzha OAO (MCX:MOEX), today announced the implementation of a back-to-back settlements technology.

Th new technology will be used for off-exchange DVP transactions denominated in Russian rubles, US dollars, Euro and Chinese yuan.

Back-to-back settlements help reduce the risk of settlement failure. This is done via netting the parties’ liabilities within a general pool of instructions to settle the instructions that could not be settled individually due to a lack of assets required for execution of such instructions at the start of a clearing session.

NSD notes that there is no need to sign up for this service, as the system automatically detects the need of conducting settlements using this algorithm.

To view the announcement on NSD’s website, click here.

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