Russia’s National Settlement Depository (NSD), part of the Moscow Exchange group of companies, has launched a new service enabling the processing of client cross-currency settlements – payment versus payment (PVP-1).
PVP is a cash settlement principle expanding the reliability of settlements and assuming that a participant’s cash transfer in one currency occurs if another participant’s cash transfer in another currency takes place simultaneously.
The PVP settlement service is offered only to credit organizations. PVP operations can be conducted only with the use of correspondent accounts and trust management accounts opened by credit organizations with NSD. The list of currencies for PVP operations includes: Russian rubles, US dollars, Swiss francs, British pounds, Chinese Renminbi and Hong Kong dollars.
The launch marks another step by the company towards the development of conversion services and periodic cash transfers (based on standing orders).
You can view the full announcement from NSD by clicking here.