OREANDA-NEWS. December 1. Morgan Stanley has joined RTS's "delivery versus payment" (DVP) system which eliminates the requirement for upfront deposits and enables settlement in US dollars, RTS' press service reports.

With effect from September 17th 2007 the use of this system by RTS Market participants became possible for both resident and non-resident clients trades for all market participant accounts.

Now 74 market participants have the opportunity to trade using the DVP system with settlement in US dollars.

The DVP system is a mandatory form of settlement in the electronic (“anonymous”) section of the Classic market where the most liquid stocks are traded for the current day. And for the other 28 securities the DVP system is the only means of settlement which can be included in quotes of the Classic market.

The DVP settlement system without upfront depositing of assets is performed through the Closed Joint-Stock Company “Depository Clearing Company”, RTS clearing depository. All settlements pass through 3 clearing companies:

RTS Settlement Chamber
JPMorgan Chase Bank
Citibank (NY)

Participants of the DVP system can settle trades on all securities held in CJSC DCC, including the whole Classic market securities list and RTS Board quotation system. Settlement can be performed also for OTC trades including trades on those securities which are not listed.

The use of the DVP settlement system is possible for settling RTS participant trades along with institutional investor and T+0 market participant trades such as those initiated by Bear Stearns, Nomura International,  BNP Paribas, Societe Generale and others.

The RTS Classic market is the oldest organized stock market in Russia. It opened on July 5th 1995. The prices that are formed on the RTS Classic market are an acknowledged indicator for investors who deal in Russian shares and depositary receipts. Information on trading on RTS is transmitted to a large number of clients in Russia and abroad and is a basis for calculating the main benchmark of the Russian stock market – the RTS Index.

Trading in securities on the RTS T+0 market is done through anonymous trading on the order-driven market via the "Delivery Versus Payment" system with 100% prior depositing of assets.