Moscow
24 January 2017
Reporter: Drew Nicol

NSD to launch OTC repo collateral service


Russia’s National Settlement Depository (NSD), in partnership with Bloomberg, is preparing to launch a new collateral management service for over-the-counter repo transactions in March.

The platform, which began testing in December, promises to expand the number of users of NSD’s collateral service and allow new repo transactions to be processed “in a similar way to the functionality available for repos with the Bank of Russia and the Federal Treasury”.

NSD’s existing system currently services 192 participants.

The project, which began last year, is sponsored by the Moscow Exchange Group and has been in a testing phase since December 2016.

In a statement on the launch, NSD described its role as keeping general collateral certificates (GCCs) and basic assets, as well as providing collateral management services to automatically select clients’ securities for the pool on the basis of selected parameters and for margins calls.

The aggregate value of repo transactions serviced by the NSD increased nominally in 2016, to sit at RUB 47.3 trillion (USD 797.5 billion), up from RUB 46.3 trillion (USD 780.6 billion) in 2015.

The annual value of repo transactions with the Federal Treasury through NSD doubled between 2015 and 2016, to value more than RUB 37.4 trillion (USD 630.6 billion).

Transaction volumes also increased to more than 2,200, up from 1,200 the year before.

The value of repo transactions with the Bank of Russia fell steeply to RUB 9.9 trillion (USD 166.9 billion) in 2016, down from RUB 30.8 trillion (USD 519.3 billion).

Bloomberg recently launched the MARS Collateral Management solution and secured HSBC Private Bank and more than a dozen corporations and financial institutions as clients.

The MARS solution targets the new variation margin requirements for non-centrally cleared OTC derivatives for banks, investment firms and corporations, promising to facilitate the collateral management and reconciliation processes needed to adhere to these new requirements.

“These rules are intended to reduce systemic risk, but present costly operational challenges to investors who will need to calculate and post initial and variation margins for all non-cleared trades, classify eligible collateral to post and deal with an increase in margin calls and daily calculations,” said Bloomberg.

More technology news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
InvestCloud builds on digital platform
17 November 2017 | Los Angeles | Reporter: Stephanie Palmer
Financial technology provider InvestCloud has added a new portfolio management tool to its digital platform
Citi pilots new platform for proxy voting
14 November 2017 | London | Reporter: Jenna Lomax
The platform, which is supported by Computershare, will be initially rolled out in the UK for the 2018 proxy season
WTW’s AMX chooses InvestCloud to boost asset management platform
07 November 2017 | London | Reporter: Stephanie Palmer
InvestCloud has been selected by Willis Towers Watson’s Asset Management Exchange to provide a digital interface to connect asset owners and management
R3 and SIA push for blockchain ecosystem
07 November 2017 | London | Reporter: Theo Andrew
The partnership will aim to speed up the global development of blockchain through SIAnet’s network of 600 nodes, provided to financial institutions, corporates and public administrations
BNP Paribas goes live on ASX corporate actions service
03 November 2017 | Sydney | Reporter: Stephanie Palmer
The new service offers straight-through delivery of corporate actions announcements, getting information to clients within seconds of the announcements being made
Lombard Risk provides regtech solution to OneSavings
01 November 2017 | London | Reporter: Jenna Lomax
The introduction of the programme at OneSavings Bank will help to streamline regulatory reporting, data management and analytics, according to Lombard Risk
DTCC enhances its European GTR for SFTR
25 October 2017 | New York | Reporter: Jenna Lomax
The new bolstered SFTR offering will be a significant addition to the existing reporting capabilities, affecting 45 regulators around the world who have access to GTR data
More technology news