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
Nasdaq to support Chilean CSD in post-trade tech
25 May 2017 | Santiago | Reporter: Stephanie Palmer
Based on the Nasdaq Financial Framework the solution will replace Depósito Central de Valores’s existing core system
Linedata bolsters TA solution
26 April 2017 | London | Reporter: Stephanie Palmer
Linedata has upgraded it Linedata solution for transfer agents, to help clients to cope with increasing regulatory reporting requirements
Esprow launches MiFID II compliance platform
26 April 2017 | New York | Reporter: Becky Butcher
Esprow has launched ETP GEMS, a global exchange and markets simulation platform that provides an on-demand testing environment to facilitate compliance with MiFID II
SWIFT tests distributed ledger technology for reconciliations
25 April 2017 | Brussels | Reporter: Drew Nicol
The results of the proof of concept will be presented at Sibos in Toronto in October
ENSO and RSRCHX pair up for MiFID II solution
25 April 2017 | New York | Reporter: Drew Nicol
The NEX Group's ENSO, a centralised treasury management solution for the buy side, is set to expand its broker vote tool to include research consumption for the second Markets in Financial Instruments Directive
Law firm sees rise in fintech patents
20 April 2017 | London | Reporter: Mark Dugdale
The number of financial technology patents filed through the international system administered by the World Intellectual Property Organization has increased 49 percent in five years
Nomura taps Indian fintech start-up talent
19 April 2017 | Mumbai | Reporter: Drew Nicol
Nomura is looking to engage with Indian fintech expertise for capital market solutions
More technology news