OREANDA-NEWS. October 19, 2012. National Settlement Depository (NSD), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, has approved a model Repository Services Agreement and began testing of the repository’s software during its interactions with potential users of repository services’ accounting systems.

NSD implements the Registration of OTC Transactions (trading repository) project as a part of its Strategic Projects Plan. Prior to initiating this project, the company considered general proposals on reorganization of the global derivatives market presented and adopted at G20 meeting in September 2009. The Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) in their joint report also emphasized a need in efficient trading repositories for effective risk management in OTC derivatives markets.

To follow these recommendations, on 11 May 2012, Russia’s Federal Financial Markets Service (FFMS) registered the Order #11-68/pz-n “On Approval of Order of maintaining the register of contracts concluded on general agreement (unified agreement) terms, on provision of information required for the register’s maintenance, and on information included in the register, as well as on submitting the register of contracts concluded on general agreement (unified agreement) terms, to the federal authority regulating securities market.” Pursuant to the provisions of the Order, the market participants are obliged to register in the repository their REPO agreements, agreements representing derivative securities, and other agreements concluded not via organized market on general agreement (unified agreement) terms.

The repository’s software testing is carried out in order to:
 allow potential clients to check interactions of their systems and EDI systems (XML-messages download and upload);
 train NSD’s and potential clients’ personnel;
 collect information about software errors for further adjustment;
 collect information about clients’ wishes in respect of usability of interface and messages formats allowing to analyze and, if possible and necessary, to upgrade the software in the next stages.

NSD plans to apply for obtaining the status of repository to Russia’s FFMS and to begin including information about REPO transactions concluded not via organized market and currency swap transactions in the repository since 3 December.