1 DVP Settlement on a Net Basis Delivery versus payment (DVP) is a method of settlement for securities that involves the simultaneous delivery of securities in exchange for the payment. As part of the DVP service, NSD determines the amount of a Clearing Participant s net settlement obligation (or net claim) for cash in the relevant currency and for securities against each counterparty also being a Clearing Participant, such amount being the difference between the amount of claims and the amount of obligations. If the difference is negative, the Clearing Participant has a net obligation for cash in the relevant currency or for securities, and if the difference is positive, the Clearing Participant has a net claim for cash or securities. Having determined net obligations/claims, NSD settles the relevant trades on a DVP basis, using the DVP model 1, DVP model 2, or DVP model 3, either in Russian roubles or in a foreign currency (USD or Euro), through trading bank accounts held by resident Clearing Participants or other residents (account No ), or by non-resident Clearing Participants or other nonresidents (account No ) with NSD and intended to hold cash funds (including an individual clearing margin) to be used for the purpose of settling and/or ensuring the settlement of liabilities eligible for clearance, or liabilities to pay a fee payable to a clearing house or any other organization that supports trades in accordance with the Clearing Law, or through USD-denominated cash accounts held with foreign banks (Citibank, New York, or J.P. Morgan & Co., New York).
2 Contents Glossary Signing Up to DVP Settlement Service Procedure for registration of Clearing Participants Registration of the Clearing Participant's Customers Registration of Bank Account Details Opening Cash Accounts Opening a Securities Account with NSD Drawing up agreements via RTS Electronic Agreements Centre (EAC) Acceptance and Matching of Instructions, Submission of Foreign Exchange Control Documents Giving Clearing Instructions Acceptance of Instructions Matching instructions by type of settlement model (DVP-1, DVP-2, DVP-3) Providing currency control documents Forming a Clearing Batch DVP Settlement Schemes Settlement via accounts in Foreign banks Settlement via accounts in NSD Settlement via account in a foreign bank and account in NSD Settlement Control of Clearing Participants Obligations Replenishment of Accounts during an Operational Day Debiting a Clearing Participant s Account Clearing Batches Debiting of the Clearing Participant's account upon completion of clearing batch Crediting of Clearing Participant's account upon completion of clearing batch Transfer of securities between securities accounts Documents Provided by NSD to Clearing Participants Fees... 18
3 Glossary Agreement on Clearing Services (hereinafter "Agreement") means the agreement whereby NSD agrees to provide clearing services in accordance with the Clearing Rules to the Clearing Participant, and the Clearing Participant agrees to pay for such services. Clearing Participant means a legal entity to which NSD provides clearing services under the Clearing Services Agreement entered into with the Clearing Participant. The Clearing Services Agreement is entered into by way of accession to such agreement. Only a legal entity with which NSD has entered into a securities account agreement may become a Clearing Participant. Clearing Participant's Customer means an entity or person that is a customer of the Clearing Participant and has entered into a securities account agreement / trust management agreement / agency agreement with such participant. Foreign Bank means one of the two settlement banks, i.e., CITIBANK, New York, or J.P. Morgan & Co., New York. Processing Account means the clearing securities account used by NSD to settle trades based on the clearing results. A trading bank account is a separate bank account held by a resident Clearing Participant or any other resident (account No ), or a separate bank account held by a non-resident Clearing Participant or any other non-resident (account No ), in each case with NSD, and intended to hold cash funds (including an individual clearing margin) to be used for the purpose of settling and/or ensuring the settlement of liabilities eligible for clearance, or liabilities to pay a fee payable to a clearing house or any other organization that supports trades in accordance with the Clearing Law (Article 15). Trading Cash Account means a customer's bank account in Russian roubles or a foreign currency maintained with NSD for the Clearing Participant/Clearing Participant's Customer. Cash Account means the cash account of the Clearing Participant/Clearing Participant's Customer maintained with a Foreign Bank. Trading Securities Account means the securities account maintained with NSD for the Clearing Participant.
4 1. Signing Up to DVP Settlement Service 1.1 Procedure for registration of Clearing Participants Upon entry into a Clearing Services Agreement, the Clearing Participant is assigned a Clearing Participant code. Only one Clearing Participant code may be assigned to the Clearing Participant.. The register of Clearing Participants containing information on the Clearing Participants of record is maintained by NSD. In addition, each Clearing Participant has a twelve-character code (identifier), which is assigned upon registration of the legal entity's information form (Form АА001) at the time when its securities account is opened with NSD and which must be indicated in its clearing instructions for the purpose of identifying the Clearing Participant. A Clearing Participant may be assigned several such identifiers. Such codes are used to identify the Clearing Participants when giving instructions and generating reports. 1.2 Registration of the Clearing Participant's Customers A Clearing Participant's Customer can be registered pursuant to the Clearing Participant's instruction containing a reference to the submission of the information form (AF005) of such Clearing Participant's Customer and accompanied with the legal entity's information form (Form АА001) or the private individual's information form (Form АА006). The information form attached must specify the code of the Clearing Participant's Customer assigned to it by the Clearing Participant in accordance with the requirements of Russian laws. A Clearing Participant's Customer may only be assigned one Clearing Participant's Customer code. Having completed the processing of the instruction to register the Clearing Participant's Customer information form, NSD will send the Clearing Participant a report accompanied with the registered information form of the Clearing Participant's Customer and specifying the code assigned to such customer. Information on Clearing Participants' Customers is included in the register of Clearing Participants' Customers. The Clearing Participant's Customer is also assigned a twelve-character identifier (code) which the Clearing Participant must include in its clearing instructions to identify its customer. 1.3 Registration of Bank Account Details To be able to settle funds based on the clearing results, the Clearing Participant should register the details of its Trading Cash Accounts/Cash Accounts to be used for settlement. After that, the Clearing Participant will need to submit to NSD, in hard copy or electronic format, an instruction requesting to record the bank account details (Form AF005), accompanied with a notice of bank account details (Form GF088). If the Trading Cash Account/Cash Account is owned by a Clearing Participant's Customer, these documents must be signed both by the Clearing Participant and its customer. The bank account details are recorded as associated with the trading securities account to be used for securities settlement. The Form GF088 application is used by the Participant to establish an association between its trading securities account with NSD and its Trading Cash Account with NSD or its Cash Account with the Foreign Bank. There are several ways to associate Trading Cash Accounts/Cash accounts with securities accounts:
5 1.1 Trading bank account/cash account and Securities account belong to a Clearing Participant 1.2 Trading bank account/cash account Belongs to a Clearing Participant s Client, Securities account belongs to a Clearing Participant X X X X Y Y 1.3 Trading bank account/cash account belongs to a Clearing Participant s Client, securities subaccounts are opened for Clearing Participant s Clients X Trading bank account/cash account X Subaccount Y X Subaccount Y X Subaccount Y Y Trading securities account Any one sub-account within a Clearing Participant s trading securities account may be associated with several trading bank accounts held with NSD and/or several cash accounts held with Citibank, New York, or J.P. Morgan & Co., New York. A single instruction may be given to associate several bank accounts (either in the same currency or in different currencies) with one or more than one sub-accounts within the same securities account, or with one or more than one sub-accounts within different securities accounts. There are no restrictions as to the number of entries in a single instruction. To ensure that several bank accounts in the same currency are associated with the same securities sub-account, it is required to specify bank account details for all such bank accounts in the same instruction. When a second instruction is submitted with respect to the same securities sub-account and in the same currency, all bank account details registered in accordance with the previous instruction, but not specified in such new instruction will be deregistered. To add a new trading bank/cash account in the same currency to the accounts earlier registered for the same securities sub-account, it is required to duplicate all bank account details for the bank accounts in the same currency (even if such details remain unchanged) from the previous instruction and add the details of the new trading bank/cash account. It is allowed to associate bank accounts in different currencies with the same securities sub-account by giving different instructions. Where there is only one bank/cash account associated with a securities sub-account, it is allowed not to specify such bank/cash account in a clearing instruction. In this case, trades will be settled using the bank/cash account associated with such securities sub-account (transaction 07). Where upon registration of a trading bank/cash account for a sub-account within a nominee s securities account a customer in an instruction for transaction 07 has been
6 specified by default, it is not required to specify a Clearing Participant s customer in a clearing instruction. In this case, trades will be settled in favour of the customer by default. If necessary, a clearing instruction for such trading bank/cash account may specify any other customer instead of the customer whose details were registered by transaction 07. Upon registration of a cash account held with a foreign bank, it is mandatory that an instruction for transaction 07 specifies the following details of the cash account owner: the code of the details form registered with NSD (the 12-character identifier), the owner s name in the relevant foreign language (starting with NSD- ), and the owner s address in such foreign language. The owner s name and address will be indicated in MT103 format messages, in field 50K (please see section 4.4). 1.4 Opening Cash Accounts For the purpose of holding their funds and conducting settlement on a DVP basis, Clearing Participants/Clearing Participants' Customers are required to do the following: If they do not have a trading cash account with NSD, they will need to enter into a bank account agreement and submit a package of documents to open an account as per the "List of Documents to Be Provided by Customers to NSD". If the customer already has cash accounts with the Foreign Banks, it will need to complete and send the relevant documents to the Foreign Bank concerned (CITIBANK, New York, or J.P. Morgan & Co., New York) authorising NSD to operate the customer's account with the bank. The following types of trading cash accounts may be opened for Clearing Participants: Account No a separate bank account for a resident Clearing Participant or any other resident; or Account No a separate bank account for a non-resident Clearing Participant or any other non-resident. 1.5 Opening a Securities Account with NSD A Clearing Participant that does not have a trading securities account with NSD will need to enter into an owner securities account agreement / interdepository account agreement / trustee account agreement and submit the package of documents to NSD as set out in the "List of Documents Required to be Provided by Customers to NSD". The following types of accounts may be opened under the respective agreements: an owner securities account an interdepository securities account a trustee account For the purpose of securities settlement based on the clearing results (DVP), the following sub-accounts of securities accounts will be used: main sub-account ( sub-account code 00) main customer s sub-account ( sub-account code 70) main additional sub-account (sub-account code 73) The procedure for opening and using the above sub-accounts is described in the Guidelines on the Procedure for Interaction between NSD and Clients (Clause and Section 4). Transactions in trading accounts are executed either on the basis of instructions submitted by the relevant clearing house (without instructions from the person in whose name such trading securities account is opened), or on the basis of instructions submitted by such person with the consent of the clearing house. The clearing house will give its consent to the execution of a
7 transaction in the trading securities account on the basis of an instruction submitted by the person in whose name the account is opened, provided that such transaction will not result in a breach of any terms and conditions provided for by the Clearing Rules for settlement of liabilities of the relevant Clearing Participant. Sub-accounts to be used for settlement based on the clearing results will be designated at the time of registration of the bank account details associated with the particular section of the securities account (transaction code: 07, bank account details designation code: 14) Drawing up agreements via RTS Electronic Agreements Centre (EAC) For trades made via the RTS EAC, customers will need to indicate "NSD" (code N) in field 5.1. as the place of securities re-registration. It is recommended to indicate in fields and the <NSD Account Identifier <NSD Section Identifier>. 2. Acceptance and Matching of Instructions, Submission of Foreign Exchange Control Documents 2.1 Giving Clearing Instructions After the trade is made, the Clearing Participants expected to deliver and receive securities will give their respective clearing instructions to NSD in the approved form. Clearing Participants must state in their instructions the settlement model to be used by specifying "DVP-1" or "DVP-2" or "DVP-3" in the "Type of Settlement" field. DVP-1 DVP-2 DVP-3 Settlement occurs on a trade-by-trade basis; Securities are settled on a gross basis, but cash is settled on a net basis,; Net settlement of both securities and cash; Where no type of settlement is specified by the Clearing Participant in a clearing instruction, cash settlements will be made on a net basis (DVP-2). It is the Clearing Participant's responsibility to ensure that the necessary quantity of securities is available in the sub-account of its trading securities account from which the delivery will be made. At the time a trade is made, there is no need to have sufficient securities in the sub-accounts of trading securities accounts and/or cash in the trading cash accounts/cash accounts. The securities and cash needed to settle the trades must be available in the trading securities accounts and trading cash accounts/cash accounts, respectively, on the date the Clearing Participant's instruction is due to settle, 15 minutes in advance of the clearing session. Instructions will be executed on the settlement date (S) specified in the instruction or on the date the pairs of instructions are matched, where one of the instructions is missing on the settlement date.
8 2.2 Acceptance of Instructions Instruction Format Instruction Cut-off Time: Instruction Recycling Period Instruction formats List of matched fields in DVP instructions for the purpose of clearing Clearing instructions should be given to NSD in an electronic format. For hard copy documents, 5:00pm MSK on the settlement date; For electronic documents, 7.30pm MSK on the settlement date. For clearing instructions, the recycling period is 30 days after the due date for settlement specified in the instruction, which is the start date for executing the instruction. Upon expiration of this period, the Clearing Participant will receive a fail report specifying "Instruction expiry" as the reason for such failure. Instructions are accepted in the electronic format 1 : -through the Louch system in the form of an MF 190 message; -through SWIFT, in the form of clearing instructions (MT541 or MT543). Instructing party and counterparty. Sender's securities account number and securities sub-account code (the latter to be included if the account number and subaccount code are specified in the receiver's instruction). Receiver's securities account number and securities sub-account code. Transaction number (reference) (to be checked if the field is populated in one of the instructions). Trade date. Instruction execution start date (trade settlement date). Securities and their quantity. Type of settlement (to be checked only in the event of gross settlement). Transaction amount, taking into account tolerance (if it is in place for both parties). Transaction currency. Place of trade (to be matched if the transactions are made through a trading venue (RTS EAC). If a Clearing Participant's instruction has a completed optional field which needs to be matched, the content of such field must be the 1 The electronic interchange of information and documents is carried out in accordance with the agreement on electronic document interchange between the clearing participants.
9 same as the content of the relevant field in the counterparty's instruction, except for the fields "Securities Account" and "Securities Account Section" in the securities receiver's instructions. The Basis field in matching instructions will only be matched if the relevant trade is made through a trading venue. In the course of processing, the settlement provider will check whether the currency of the account to be debited and the account to be credited match. For instance, if the receiver's instruction specifies a rouble account, and the deliverer's instruction specifies a USD account, such instructions will not be allowed to settle. As a general rule, the transaction currency must be the same as the account currency. An exception is when the trade is made in US dollars and the cash accounts in both the deliverer's and receiver's instructions are rouble-denominated. In this case, the trade amount in USD will be converted into Russian roubles at the exchange rate set by the Bank of Russia for the day immediately preceding the actual settlement date. Where a trade is made through RTS Electronic Agreements Centre (RTS EAC), it is required to include the following details in instructions: - for instructions submitted via SWIFT (MT 541 or MT 543 formats), it is required to specify 94B::TRAD//OTCO/RTS in field 94B; or - for instructions submitted via Luch software (instruction form MF 190), it is required to specify the code of the place of trade (RTS) in the Place of trade field. The said fields in SWIFT MT 541 or MT 543 messages, or in instruction form MF 190 are conditionally mandatory fields and are to be matched. RTS is a designation that shows that a trade has been made through RTS EAC. When a trade is executed through a trading
10 venue (RTS EAC), the following details will be checked: agreement number; agreement date; type of agreement. Instructions, which contain a reference to a trading venue but do not contain any references to the type, number and/or date of the agreement, will not be processed. 2.3 Instruction Matching using the Tolerance Principle NSD matches instructions based on the tolerance principle, which makes it possible to match and settle pairs of transactions if the trade amounts specified in such pairs of transactions by the Clearing Participants differ insignificantly. A tolerance value is set by each Clearing Participant at his own discretion and specified in a Notice of Bank Account Details (Form GF088) submitted for registration of bank account details. In accordance with the tolerance principle, a trade is settled using the trade amount specified in one of the matching instructions, provided that the trade amount specified in the other instruction does not exceed the tolerance value specified in the relevant Notice of Bank Account Details. For matching instructions related to accounts for which tolerance values are set, where the trade amounts in matching instructions differ, the trade amount specified by the transferee of the securities will be used. In this case, the instructions submitted will be matched, and the trade amount to be used will be determined as follows: - The instructions are deemed to have been matched, and the trade is settled using the trade amount specified in the instruction submitted by the transferee of the securities, if the difference between the trade amounts in the matching instructions does not exceed the tolerance value set by the transferor of the securities; or - The instructions are deemed to have been matched, and the trade is settled using the trade amount specified in the instruction submitted by the transferor of the securities, if the difference between the trade amounts in the matching instructions does not exceed the tolerance value set by the transferee of the securities. Where a tolerance value is set only for one of the accounts for which matching instructions are submitted, if the trade amounts in matching instructions differ, the instructions submitted will be matched, and the trade amount to be used will be determined as follows: - The instructions are deemed to have been matched, and the trade is settled using the trade amount specified in the instruction submitted by the Clearing Participant who set no tolerance value for the account specified in his Notice of Bank Account Details, if the difference between the trade amounts in the matching instructions does not exceed the tolerance value set for the account specified in the instruction submitted by the Clearing Participant who set the tolerance value in his Notice of Bank Account Details.
11 The maximum tolerance value is USD 25 (twenty-five US dollars) or RUB 800 (eight hundred Russian roubles). The tolerance currency must be the same as the account currency. If the tolerance currency and the transaction currency are different, the tolerance will not be applied. Where the account currency is any currency other than USD (e.g. Euro), the tolerance value will be converted into USD at the exchange rate set by the Bank of Russia for the date immediately preceding the execution date of the instruction for registration of bank account details, and the resulting tolerance value will be matched against USD Matching instructions by type of settlement model (DVP-1, DVP-2, DVP-3) Clearing Participants must expressly state in their clearing instructions the settlement model to be used by specifying "DVP-1" or "DVP-2" or "DVP-3" in the "Type of Settlement" field. If DVP model 1 is used, both Clearing Participants' instructions must contain an indication that settlement is based on DVP model 1. For DVP-2 and DVP-3 settlement, it is permitted to match instructions for different types of transactions: If the Clearing Participant delivering securities specifies DVP model 2 settlement in its instruction, while the Clearing Participant receiving such securities indicates DVP model 3 settlement in its instruction, then the MS102 report (on the results of securities transfers) sent to the deliverer of securities will specify the transfers processed on a gross basis for each individual instruction settled during the batch run, and the MS102 report addressed to the receiver will show only one securities transfer settled by netting all the instructions processed during the batch run. If the instruction does not contain information on the settlement model, DVP model 2 (gross settlement of securities and net settlement of funds) will be applied by default. As provided by Russian law, for DVP-2 and DVP-3 settlement, a clearing securities account (i.e., a Processing Account) must be used, which is why the MF102 depository reports will specify such clearing securities account as an associated securities account. DVP model 1 settlement does not require the use of the clearing securities account (processing account), which is why the MF102 depository reports will specify the counterparty's securities account. 2.5 Providing currency control documents If a Clearing Participant is a legal entity resident in the Russian Federation (not a credit organisation) and is going to affect settlement in a foreign currency, it is necessary to provide the relevant currency control supporting documentation. An instruction submitted by the Clearing Participant must contain the details of the transaction basement documents, which have been sent to NSD as currency control supporting documents, as well as the transaction details and the details of the transaction document. Currency control supporting documentation is to be submitted simultaneously with the DVP settlement instructions or in advance of the settlement date. Such currency control documents (namely, a "Register of Executed Trades") are submitted on or before the settlement date to NSD through the Louch system in the form of a free-format message, or in hard copy form, signed by the Clearing Participant's authorised persons. If the Clearing Participant's instruction contains cash account details to be used for funds transfer based on the clearing results, the Clearing Participant must provide, in addition to the above documents, a brokerage services agreement / agency agreement / accession agreement / trust management agreement / depository services agreement (to be provided only once).
12 NSD will independently complete, acting pursuant to a supplementary agreement entered into with the participant, a certificate of currency transaction specifying the type and other details of transactions. If a transaction is made by a legal entity ( not a credit organisation) that is a nominee's customer, the supporting documents must be submitted to NSD by the nominee that is the Clearing Participant. Customers' instructions, for which currency control supporting documents have not been received, are not included in the batch of transactions for clearing. If and when the relevant currency control documents are subsequently received, the customers' instructions will be included in the next following clearing batch. For transactions executed through the RTS AEC, no currency control documents need to be provided. No currency control documents need to be provided by non-resident customers. 2.6 Forming a Clearing Batch A clearing batch is based on matched instructions for which currency control documents have been received. A clearing batch may include obligations to be terminated and/or fulfilled using DVP model 2 or DVP model 3.
13 3. DVP Settlement Schemes 3.1. Settlement via accounts in Foreign banks * For DVP-2 and DVP-3 settlements. DVP-1 settlements are conducted without Aggregate clearing account. 1. Clearing participants (Seller and Buyer) send DVP instructions to NSD; 2. NSD executes netting of liabilities in pool of matched instructions; 3. Securities blocking; 4. NSD on the basis of Power of Attorney sends instruction to debit Buyer s/ Buyer s client cash account opened with the foreign Bank. 5. J. P. Morgan & Co., NY/CITIBANK, NY transfers funds from the Buyer s/ Buyer s client cash account to the account of NSD; 6. NSD sends instruction to transfer funds from the correspondence account opened with J. P. Morgan & Co., NY/CITIBANK, NY to the account of Seller/Seller s client; 7. NSD receives confirmation that the account of Seller/ Seller s client has been credited; 8. NSD settles securities.
14 3.2. Settlement via accounts in NSD * For DVP-2 and DVP-3 settlements. DVP-1 settlements are conducted without Aggregate clearing account. 1. Clearing participants (Seller and Buyer) send DVP instructions to NSD; 2. NSD executes netting of liabilities in pool of matched instructions; 3. Securities blocking; 4. NSD simultaneously settles funds and securities.
15 3.3 Settlement via account in a foreign bank and account in NSD J.P. Morgan & Co NY / Citibank, NY Account of NSD Cash 5 Account of Buyer/ Buyer s client Trading bank account of Seller/ Seller s client 6 NSD Trading securities account of Seller 3 *Aggregate 7 clearing account for securities 7 settlements Trading securities account of Buyer 1 Clearing participant (Seller) Clearing participant (Buyer) * For DVP-2 and DVP-3 settlements. DVP-1 settlements are conducted without Aggregate clearing account. 1. Clearing participants (Seller and Buyer) send DVP instructions to NSD; 2. NSD executes netting of liabilities in pool of matched instructions; 3. Securities blocking; 4. NSD on the basis of Power of Attorney sends instruction to debit Buyer s/ Buyer s client cash account opened with the foreign Bank. 5. J. P. Morgan & Co., NY/CITIBANK, NY transfers funds from the Buyer s/ Buyer s client cash account to the account of NSD; 6. NSD reflects funds transfer from correspondence account opened with J. P. Morgan & Co., NY/CITIBANK, NY to trading bank account of Seller/ Seller s client opened with NSD; 7. NSD settles securities.
16 4. Settlement 4.1. Control of Clearing Participants Obligations For the period during which a clearing pool of trades is being built up, Clearing Participants securities accounts are blocked. Upon building up the clearing pool of trades, only those securities remain blocked which will be needed to settle the relevant trade. Trading bank accounts held by Clearing Participants are blocked at the start of an operational day and get unblocked upon completion of the last clearing session. Transactions in cash accounts may only be made with the permission of NSD Replenishment of Accounts during an Operational Day Clearing Participants may replenish their trading bank accounts/cash accounts/trading securities accounts intended for settling trades on a DVP basis, during NSD s operational day. Cash/securities to be available for the purpose of settling a trade must be received by NSD at least 15 minutes before the start of the next clearing session. Securities will be credited in accordance with NSD s standard procedure. When replenishing his cash account, the Client may specify today in field 72 of his MT103/202 message. In this case, cash funds will be automatically credited to the cash account; otherwise such cash funds will be credited to the cash account the next day. For corporate Clients (other than banks), cash funds in a foreign currency received from outside and to be credited to Clients accounts will be first credited to a foreign currency-denominated transit account, as required by the Bank of Russia s regulations to be applied by NSD acting as a foreign exchange control agent. Cash funds are transferred by NSD from a foreign currency-denominated transit account to a Client s foreign currency-denominated current account without Client s further instructions, in case of the following Client s transactions: 1. Upon replenishment of the Client s account held with NSD for the purpose of settling trades on a DVP basis, by remitting cash funds from a Client s account held with another bank. 2. Upon crediting cash funds received from a Client s customer from outside to the Client s account held with NSD (e.g. under a brokerage services agreement or otherwise), provided that a copy of the agreement specified in the Purpose of payment field (in an MT 103 or MT 202 message) is available to NSD. However, - if a copy of such agreement specified in the Purpose of payment field (in an MT 103 or MT 202 message) is not available to NSD, the Client will be requested to submit a copy of such agreement to NSD; or - if no details of the document constituting the basis for the relevant foreign currency transaction are specified in the Purpose of payment field (in an MT 103 or MT 202 message), the Client will be requested to submit the following documents: the agreement or any other document constituting the basis for such transaction, a
17 currency control form, and an instruction to transfer cash funds from the transit account to the current account Debiting a Clearing Participant s Account To debit cash funds from his trading bank account, a client may either submit to NSD an instruction (form MT 202) or a cash transfer application via the Bank-Client system. To withdraw cash funds from an account held with a foreign bank, a client has to submit to NSD either a payment instruction (form MF199/MT103) or a cash transfer application via Luch software. 4.4 Clearing Batches A clearing batch is the period of time during which NSD is making clearing of a group of transactions having a common feature (i.e., the terms of their processing). During a business day, NSD runs seven clearing batches at 10.00, 12.00, 13.00, 15.00, 16.00, 18.00, and MSK. The batches running at 12:00, 16:00, and 19:40 MSK involve the trading cash accounts with NSD, while the batches running at 10:00, 13:00, 15:00, and 18:00 MSK involve both trading cash accounts with NSD and cash accounts with the foreign settlement banks. 4.5 Debiting of the Clearing Participant's account upon completion of clearing batch Trading cash accounts opened with NSD are debited by NSD automatically upon completion of a clearing batch. Cash accounts opened with the Foreign Banks and operated by NSD are debited upon completion of the clearing batch, basing on NSD s a payment instruction (MT103) sent to the Foreign Bank, specifying NSD's correspondent account with the Foreign Bank as the receiver of the funds. 4.6 Crediting of Clearing Participant's account upon completion of clearing batch Trading cash accounts opened with NSD are credited by NSD automatically upon completion of a clearing batch. Cash accounts opened with the Foreign Banks and operated by NSD are credited upon completion of the clearing batch, basing on NSD s payment instruction sent to the Foreign Bank for debit of NSD's correspondent account with that Foreign Bank and further credit of the Clearing Participant's account with the Foreign Bank. 4.6 Transfer of securities between securities accounts After either the receiver's trading cash account with NSD has been credited, or NSD received from the Foreign Bank a confirmation of credit of the receiver's account with that the Foreign Bank, NSD transfers securities between the trading securities accounts concerned. 5. Documents Provided by NSD to Clearing Participants Upon completion of clearing processing, NSD will circulate reports to Clearing Participants. The reports are sent via the Louch system or SWIFT. Hard copy clearing reports will be issued to Clearing Participants on the next business day from 9:30 to 17:00 MSK. In order to be able to receive such hard copy reports from the Clearing Services Provider, the Clearing Participant is to authorise its representatives to do so and grant them powers of attorney.
18 The Clearing Participant should deliver such powers of attorney to the Clearing Services Provider together with the package of documents when entering into the Clearing Services Agreement. Sending reports on the results of a clearing batch run Sending report on the customer's instructions which fail to settle Sending statements of securities accounts Sending statements of bank account Via Louch system (MS190, MS199, MS009), via SWIFT (МТ 545, MT 547) Via Louch system (MS007, GS116, ), via SWIFT (МТ 578, МТ 548, МТ 537) Via Louch system (MS102), via SWIFT (МТ 535, MT 536) Via the Bank-Client system, via SWIFT (MT 950). 6. Fees In order to ensure a comfortable transfer of DVP settlement processing from DCC to NSD, NSD will introduce a promotional period through 31 December 2012 during which no fees will be charged for its clearing services. For more details on our fees, please visit the Fees section of our website.
DVP settlement in NSD DVP* settlement as defined by G10 workgroup**: DVP 1: Transfer instructions for both securities and funds are settled on a trade by trade basis, with final transfer of the securities
Latvian Central Depository Regulation No. 15 On DVP settlement in foreign currencies APPROVED by Latvian Central Depository Supervisory Board Meeting on February 27, 2004 AMENDMENTS APPROVED On 29.05.2007.;
ICE Futures U.S., Inc. ICE FUTURES EURO INDEX* Effective with the close of business May 20, 2011 all Euro Index Futures and Option Contracts will no longer be listed for trading. TABLE OF CONTENTS Rule
Latvian Central Depository Regulation No. 5 On DVP Settlements for Over-the-Counter Transactions APPROVED by the Latvian Central Depository Council Meeting on 27 October 2006 AMENDMENTS APPROVED At the
Dubai Financial Market Rules for DVP Clearing and Settlement ( DVP Rules ) 20/04/2011 Table of Contents DEFINITIONS... 3 1 CLEARING AND SETTLEMENT... 5 2 TRANSFERS OF SECURITIES ARISING FROM LATE CONFIRMATION...
KAZAKHSTAN STOCK EXCHANGE Appendix R4 to Rules of Exchange Securities Trading A g r e e d o n with the Committee on Regulation and Supervision of the Financial Market and Financial Organizations of the
RS Official Gazette, Nos 24/2007, 31/2007, 41/2007, 3/2008, 61/2008, 120/2008, 38/2010, 92/2011, 62/2013, 51/2015 and 111/2015 Pursuant to Articles 21 and 45 of the Law on the National Bank of Serbia ("RS
Changes to the Citi International Personal Bank General Terms and Conditions Effective 31 December 2012 (unless otherwise indicated) This table sets out a summary of certain changes we have made to the
SECTION 14 RISK MANAGEMENT 14.1 POSITION LIMITS DERIVATIVES MARKET CONTRACTS AND DERIVATIVES CCP CONTRACTS... 3 14.1.1 ASX Clear may prescribe Position Limits... 3 14.1.2 Breach of Position Limits... 4
Guide for Ruble Payments 02.05.2016 How to fill in a Foreign Payment order 2/13 Required details of ruble payments 1. The beneficiary's name in Russian written in Latin alphabet according to the transliteration
Nasdaq Dubai Operating Procedures Clearing, Settlement and Risk management for securities For more information Nasdaq Dubai Ltd Level 7 The Exchange Building No 5 DIFC PO Box 53536 Dubai UAE +971 4 305
Detailed Delivery Rules of China Financial Futures Exchange for 5-year Treasury Bond Futures Contract (Implemented on August 30, 2013; amended for the first time on July 1, 2015) Chapter I General Provisions
Entry into force: 29. April 2015 Version: 1.1 Published 27. April 2015 VPO NOK Rules Rules for the Central Securities Settlement in Norwegian Kroner This document is a translation from the original Norwegian
PROCEDURE ON CENTRAL COUNTERPARTY SERVICE TO BE PROVIDED BY ISTANBUL SETTLEMENT AND CUSTODY BANK INC. TO BORSA ISTANBUL INC. FUTURES AND OPTIONS MARKET AND THE CLEARING AND SETTLEMENT PRINCIPLES REGARDING
(X) FX PROCEDURES INDEX Page 1. ADDITIONAL DEFINITIONS... 2 2. ADDITIONAL MEMBERSHIP REQUIREMENTS FOR FX CLEARING MEMBERS... 4 3. OTHER PROCEDURES... 5 4. SUBMISSION AND ACCEPTANCE OF FX CONTRACTS... 5
MARKET PRACTICE GUIDE FOR SECURITIES SETTLEMENT 2014 TABLE OF CONTENTS 1. Introduction... 4 1.1. The purpose of the market practice guide... 4 2. Market practice for securities settlement in Estonia...
CONDITIONS FOR MAKING PAYMENT TRANSACTIONS 1. GENERAL PROVISIONS 1.1 In the Conditions for Making Payment Transactions (hereinafter referred to in this document as the Conditions) the bank issues the terms
RULE B-15 SPONSORED OPTIONS This Rule B 15 is applicable only to the European or American Style Sponsored Options. The Underlying Interest for a Sponsored Option can be an Index or a Stock. Section B-1501
Renaissance Securities (Cyprus) Limited FORTS and RTS Standard Trading Schedule Version 1: August 2011 You confirm and agree that this Schedule forms part of and is incorporated by reference into the Agreement
BANK OF RUSSIA INSTRUCTION 124-I OF JULY 15, 2005 ON SETTING AMOUNTS (LIMITS) ON OPEN FOREIGN EXCHANGE POSITIONS, THE METHODOLOGY FOR CALCULATING THEM AND THE SPECIFICS OF SUPERVISION OVER THEIR COMPLIANCE
TERMS AND CONDITIONS FOR SECURITIES TRADES Valid and effective from 18 September 2013 Page 1 of 6 1. INTRODUCTION Danske Bank A/S trading in the Republic of Ireland as Danske Bank (the Bank) is authorised
Frequent Asked Questions 1. What are RMB currency futures? What will be the underlying currency pair? RMB currency futures are futures contracts based on the exchange rates between RMB and other currencies.
1. Definitions In addition to the terms and conditions provided in the Current Account Contract Conditions and the General Conditions of the Bank, the following definitions are used in these Payment Conditions:
OPERATING RULES OF THE CENTRAL SECURITIES DEPOSITORY AND CLEARING HOUSE (Consolidated text reflecting amendments entered into force Jan, 19, 2015) Page 1 I. BASIC PROVISIONS 1.  The Central Securities
1. GENERAL PROVISIONS 1.1 Agreement for credit card with fixed payment (hereinafter the Agreement) regulates the rights and obligations for using a credit card issued by (hereinafter the Bank). 1.2 A credit
DEPARTMENT OF INSURANCE OFFICE OF THE COMMISSIONER Statutory Authority: 18 Delaware Code, Sections 311, 1333 and 29 Delaware Code, Chapter 101 (18 Del.C. 311 and 1333 and 29 Del.C. Ch. 101) PROPOSED Regulation
Online Online Account Terms JUNE 2013 http://www.bby.com.au This booklet contains the terms of the Client s BBY Online Trading Facilities with BBY. BBY ONLINE TRADING TERMS 1. ACCOUNTS 1.1 When BBY accepts
Section 21 Costs and Expenses 21/1 In this Section 21, references to HKD or HK$ mean Hong Kong Dollar; references to CNY mean Chinese Yuan (Renminbi) and references to USD mean US Dollar. 21.1 CLEARING
Translation from Russian Information Letter of Open Joint Stock Company RN Holding Dear Shareholder, We hereby inform you that on November 6, 2013, Open Joint Stock Company RN Holding (hereinafter, the
SWIFTPAY SERVICE LEVEL RULES & REGULATIONS 1. Introduction The present document constitutes the SWIFTPay Service Level Schedule under the Service Level Master Agreement for the realisation of credit transfers
WEBKINCSTAR ONLINE SECURITIES TRADING - TERMS AND CONDITIONS OF USE The Hungarian State Treasury (hereinafter: Distributor) provides general information (on its website) and executes securities trading
CANTOR EXCHANGE FOREIGN EXCHANGE RATE SPOT INDEX DAILY FUTURES AND BINARY FLEX OPTION CONTRACT RULES I-1. Scope and Underlying (a) This Chapter governs transactions involving all Contracts derived from
Reform of the Registry, Clearing and Settlement System 24 September 2014 CONTENTS 0. INTRODUCTION I. MAIN CHANGES INTRODUCED BY THE REFORM II. CENTRAL COUNTERPARTY (CCP) FOR EQUITIES 1. INTRODUCTION 1.1.
LAW ON PAYMENT SERVICES Part I INTRODUCTORY PROVISIONS Subject matter Article 1 This Law regulates the conditions and manner of providing payment services, electronic money, payment systems and supervision
Terms and Conditions 1. TABLE OF CONTENTS 1. TABLE OF CONTENTS 2. SERVICES OFFERED TO THE CUSTOMER 3. EXECUTION-ONLY ARRANGEMENTS 4. YOUR INVESTMENT OBJECTIVES 5. RESTRICTIONS ON TYPES OF INVESTMENT 6.
IV. DUTIES AND OBLIGATIONS OF SEOCH PARTICIPANTS 8. SETTLEMENT AND DELIVERY IN RESPECT OF STOCK TRANSACTIONS 8.1 Overview Immediately upon the valid exercise of an OCH Contract and assignment of that OCH
NOTICE ON THE TERMS AND CONDITIONS OF CROSS-CURRENCY INTEREST RATE SWAP TENDERS COMBINED WITH SPOT TRANSACTIONS RELATED TO THE MEASURES NECESSARY IN ORDER TO TERMINATE THE SHIFTING OF RISKS ARISING FROM
Reform of the Registry, Clearing and Settlement System 13 May 2013 CONTENTS 0. INTRODUCTION I. MAIN CHANGES INTRODUCED BY THE REFORM II. CENTRAL COUNTERPARTY (CCP) FOR EQUITIES 1. INTRODUCTION 1.1. Integration
N Title LCH.Clearnet SA Instruction III.4-2 PROCEDURE FOR SETTLING NET FAILS ON TRANSACTIONS REGISTERED IN THE CASH AND DERIVATIVES CLEARING SYSTEM ENFORCEABLE ON NOVEMBER 1 ST 2012 Pursuant to Articles
EESTI PANK Governor s Decree No. 11 1 October 2007 Establishment of the report on deposits guaranteed by the Guarantee Fund and the report on quarterly contributions paid to the Guarantee Fund This decree
Basel Committee on Banking Supervision Frequently Asked Questions on Basel III s January 2013 Liquidity Coverage Ratio framework April 2014 This publication is available on the BIS website (www.bis.org).
Valid from 16.03.2015 RATES FOR CASH AND SETTLEMENT SERVICES TO CORPORATE CUSTOMERS (LEGAL ENTITIES AND PRIVATE ENTERPRENEURS) Item Service Applicable rates Payment procedure Notes 1.1. Opening an account
Opinion n 2015-06 of 3 July 2015 relating to Central Government Accounting Standard 10 Cash Components On 3 July 2015 the Public Sector Accounting Standards Council adopted this Opinion relating to Central
APPROVED BY the CSDL Board meeting on October 19, 2007 Minutes No. 4 THE RULES ON THE SECURITIES SETTLEMENT SYSTEM OF THE CENTRAL SECURITIES DEPOSITORY OF LITHUANIA I. GENERAL PROVISIONS 1. The Rules on
Central Securities Depository of Lithuania Answers to the questionnaire included in the Disclosure Framework for Securities Settlement System prepared by the Committee on Payment and Settlement Systems
RULES VERSION OF NOVEMBER 18, 2015 PART A GENERAL RULE A-1 DEFINITIONS SECTION A-101 SCOPE OF APPLICATION Unless the context otherwise requires or unless different meanings are specifically defined, for
Basic Rules of Issuing Invoices and Receipts 2014 Most requirements pertaining to invoicing are contained in Act CXXVII of 2007 on Value Added Tax (hereinafter: VAT Act) and the decrees issued on the basis
Member s Profile of NSD (Russia) Organization Name: Country/ Region: Name of CEO: National Settlement Depository NSD Russian Federation Dr. Eddie Astanin Capital (US$): RUB 3 924.78 million (as at 30 April,
English is not an official language of the Swiss Confederation. This translation is provided for information purposes only and has no legal force. Federal Act on Intermediated Securities (Federal Intermediated
MARGIN FINANCING (MF) CONCEPT PAPER Contents A. OBJECTIVES...3 B. MARGIN FINANCING THROUGH BROKERS...3 Scope...3 Working mechanism...3 Risk Management...5 Default procedures...6 C. DIRECT MARGIN FINANCING
12/1 CHAPTER 12 MONEY SETTLEMENT SERVICES 1201. Participants to have Designated Bank Accounts Each Participant shall maintain a General Purpose Designated Bank Account in its own name and denominated in
THE CROATIAN PARLIAMENT 3247 Pursuant to Article 88 of the Constitution of the Republic of Croatia, I hereby issue the DECISION PROMULGATING THE PAYMENT SYSTEM ACT I hereby promulgate the Payment System
TERM DEPOSIT ACCOUNT OPENING AND MAINTENANCE RULES OF AS DNB BANKA APPROVED Edition of 01.12.2015, by the decision of the Management Board of AS DNB banka dated 01.12. 2015, Effective from 01.02.2016 1.
2013-03-01 Participation in Euroclear Sweden AB TABLE OF CONTENTS 1 INTRODUCTION... 3 2 CLEARING AND SETTLEMENT... 3 AM SUB-MARKET... 3 PM SUB-MARKET... 3 3 SAFEKEEPING... 3 OWNER- REGISTERED ACCOUNT...
CMC MARKETS UK PLC Order Execution Policy Summary for CFDs October 2012 Registered in England. Company No. 02448409 Authorised and regulated by the Financial Services Authority. Registration No. 173730
2003 ISDA Credit Derivatives Definitions ISDA INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC. Copyright 2003 by INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC. 360 Madison Avenue, 16 th Floor
Information on the major transaction In accordance with Article 79 of the Federal Law On joint-stock companies and Sub-item 25 Item 12.2 of Rosneft Charter the approval of certain major transactions is
The Rules of the Clearing Guarantee Fund (Valid as at 1 December, 2012) Chapter I General Provisions 1 1. These Rules, hereinafter referred to as "the Rules", define the procedures for the formation and
Macquarie Shorting Product Disclosure Statement 15 JUNE 2015 Macquarie Bank Limited. ABN 46 008 583 542. Australian Financial Services Licence No. 237502. 1 This PDS This product disclosure statement (
Данный документ предназначен только для ознакомления. Обратитесь в Управление ценных бумаг по тел. +7 (095) 725-6736 за получением оригинальных форм для заполнения и подписания. This document is for information
STATUTORY INSTRUMENTS. S.I. No. )04, of 2015 CENTRAL BANK (SUPERVISION AND ENFORCEMENT) ACT 2013 (SECTION 48(1)) CLIENT ASSET REGULATIONS 2015 FOR INVESTMENT FIRMS S.I. No. (74 of 2015 CENTRAL BANK (SUPERVISION
CNS Settlement as Delivery versus Payment in DTC (CNS for Value) An initiative of The National Securities Clearing Corporation and The Depository Trust Company A white paper to the industry September 2011
ACCOUNTING AND AUDITING LAW I BASIC PROVISIONS Article 1 This Law shall govern the requirements for and manner of keeping books of account, preparing, presenting, submitting and disclosing financial statements,
x multiplying your investments to multiply your returns x multiplying your investments to multiply your returns x multiplying your investments to multiply your returns x multiplying your investments to
Clearing Conditions for Eurex Clearing AG Page 1 ( ) Chapter I General Provisions Part 1 General Rules ( ) 1.5 Settlement of transactions (1) Eurex Clearing AG is contractual partner for all deliveries
2009 STANDARD TERMS OF FX, CURRENCY OPTION AND FX SWAP TRANSACTIONS MOS242148/11 151276-0001 MOS242148/11 151276-0001 Page 2 2009 STANDARD TERMS OF FX, CURRENCY OPTION AND FX SWAP TRANSACTIONS These Standard
2. RULES APPLICABLE TO RESIDENTS 2.1 Investment in foreign currency assets 2.1.1 Residents are free to undertake any amount of investment in foreign currency assets offered in Malaysia by a resident. 2.1.2
Futures Contract Introduction 1 The first futures exchange market was the Dojima Rice exchange in Japan in the 1730s, to meet the needs of samurai who being paid in rice and after a series of bad harvests
Appendix to the Resolution No. 17/2011 of the Management Board of BZ WBK Brokerage S.A. dated 25 February 2011 concerning adoption of the amended General Terms and Conditions of Brokerage Services Provided
Exchange Specific General Terms and Conditions of Business concerning SIX Swiss Exchange Ltd Exchange Specific GTCB SIX Swiss Exchange November 2009 1 15 Table of contents 1 Scope 3 2 Definitions 3 3 Securities
9. 9.1 Marginable Position SEOCH requires margin for open option positions and pending stock positions. This is calculated and collected, where necessary, on a daily basis using routine procedures which
1.0 Overview SIX x-clear offers a new service for OTC cash equity clearing of Traiana transactions SIX x-clear Ltd has launched OTC cash equity clearing services for Traiana, Inc. Members that enrol for
NOREXECO Rulebook Appendix 10 Definitions and abbreviations Table of Contents Definitions and abbreviations... 3 Page 2 of 16 Definitions and abbreviations In the Rulebook, including the Appendices and