NSD’s Master agreement passes compliance threshold

National Finance Association (NFA), a self-regulatory organization which brings together Russian financial market participants, has confirmed the compliance of the form of the Master Agreement for general terms for concluding repo contracts utilizing National Settlement Depository’s collateral management services with NFA’s standards.

NFA has sent the relevant report to NSD. The standard form of the Master Agreement will allow NSD clients to reduce the time required to develop contractual documents with counterparties, as well as to use NSD’s tri-party services, in particular, for inter-dealer repos.

Alina Akchurina, Managing Director for Collateral Management and Tri-Party Services, NSD, said: “A standard Master Agreement form for concluding repos with collateral management functions delegated to a neutral intermediary is a common practice supported by national regulators. The standard forms are optional for clients using NSD’s tri-party services, and the participants may continue to use their own agreement forms. However, many clients prefer to sign the standard forms.”

NSD has developed an additional agreement form for clients who have already signed master agreements with counterparties. The standard forms are available on NSD’s website: www.nsd.ru/triparty.

NSD’s tri-party services are widely used when clients conclude transactions with the Bank of Russia, the Federal Treasury, and repos with general collateral certificates. The algorithmic selection of securities allows for the execution of liabilities on OTC and exchange transactions to be automated.

 

NSD has been developing its collateral management system since 2013.