Transcript Слайд 1 - Московская Биржа

Payments in Russia: the
background for revisal
4th Ruble Forum
08 October 2008
By
Anna Zolotova
Head of Correspondent Banking and Development of
Settlement Procedures
Contents
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Overview of Russian settlement system
features
Subjects to revisal
Interim solutions
MICEX Settlement House as settlement
services provider
Contact details of the MICEX Settlement
House
Overview of Russian settlement system
features
1.
The system currently in use is batch-based,
having 5 batch sessions per day:
Payment processing cycle for Moscow region:
18:00
4th batch
16:00
payment
20:00
4th session
results
Tomorrow
received
by Bene
20:00
session
results
4th
Ordering
Customer
Russian
Correspondent
Bank
Beneficiary
Bank
The Bank of Russia
Beneficiary
Overview of Russian settlement system
features



Considerable time is taken by full payment processing
cycle
Most payments are processed in the 4th or the 5th sessions
and, therefore received in a beneficiary bank at about
20:00 or 22:00 Moscow time respectively, which is too late
in the context of liquidity management
The geographic time lag for non-Russian customers
aggravates the above mentioned problems
Overview of Russian settlement system
features
The BESP system recently introduced by the Bank
of Russia is purposed to provide RTGS between its
participants
But
 There are a number of the system technical
shortcomings, due to which it is still not complying
general RTGS principles.
 At the moment (as of 22 September 2008) the
system involves only 369 participants (including
branches), and the biggest Russian banks are not
yet live in the system.

Overview of Russian settlement system
features
2.
The system uses specific format standard for
payment orders :



No use of code input in bank name fields (like SWIFT
BIC and IBAN used in SWIFT standards)
No intermediary bank field is available
Only Russian language is accepted:

This creates one of the biggest difficulties to non-Russian
banks accessing the Russian market through their Russian
correspondent banks.
Overview of Russian settlement system
features
3.
There is a requirement to indicate special
currency control codes for payments with a
non-Russian counterparty involved:


Foreign banks have to explore purposely the
special Bank of Russia’s rules and regulations that
specifies the relevant requirements
Due to the possibility of varying interpretation of the
codes description given by the Bank of Russia,
foreign banks often indicate the codes incorrectly.
Overview of Russian settlement system
features
RECEIVED = 202 GENERAL FINANCIAL INSTITUTION TRANSFER
Destination MICURUMMAXXX
Session/Sequence1464/455959 date rcvd08-OCT-2008 12:10
-----------------------------------------Originator
BANKGB2LAXXX
BANK
LONDON,UNITED KINGDOM
Session/Sequence1111/111111
date send08-OCT-2008 09:10
-----------------------------------------:20 : 111111KT111
:21 : 111111KT111
:32A : 081008 RUB 100 000 000.00
:57D : /RU0445000000.30101810700000000111
OAO RUSSIAN BANK
MOSKVA
:58A : /30101810111110000111
Currency
BANKRU2P
Control Code
:72 : /NZP/ {vo052080}
//SOGL. DOG-RA N 1
//NDS NE OBLAGAETSa
------------------------------------------
Subjects to revisal
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The regulatory normative base
The current technological base and software
The settlement system ideology
There is no need to “reinvent the wheel”, we
should use the accumulated experience of
the international banking practice and further
keep pace with it.
Interim solutions

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The Bank of Russia’s working group for development of its
payment system is keeping its awareness of the above listed
challenges and setting up the relevant missions
The language problem solution is provided by ROSSWIFT in
“SWIFT-RUR” formats, whereby the special Latin crypt should
be used in a SWIFT payment order, which is further translated
into Cyrillic, however this way requires significant modification
of a foreign bank’s software, as well as involving of Russianspeaking staff
Russian banks with wide customer base and network of
domestic correspondent banks offer their customers
settlements through that network using international payment
standards via SWIFT/telex or client-bank system.
MICEX Settlement House as settlement
services provider
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MICEX Settlement House is working on a
technological solution that would provide a
simple ruble settlement instruction input for
non-Russian banks, organize STP for these
settlements and offer customers real time
on-line account monitoring capabilities
This development is combined with an
initiative for co-operation between MICEX
and ICAP
MICEX Settlement House as settlement
services provider
To date the number of MICEX Settlement House’s
customers achieved 722 organizations including the
biggest Russian financial institutions and foreign banks’
subsidiaries
MICEX Settlement House as settlement
services provider
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Settlements Safety and Reliability is achieved by the
following:
The MICEX SH is a financial institution specializing in
settlements
The MICEX SH maintains obligatory liquidity ratio at the
minimum level of 100%, does not effect any investment
activity thus does not carry any credit or other market
risks
Back-up procedures are in place for all data
E-documents exchange is protected by certified
encryption mechanism
Alternative communications channels are provided
Settlement procedures are fully automated
MICEX Settlement House as settlement
services provider
Main financial figures as of 01 October 2008
(in millions):
 Total balance – RUB 114 972 (USD 4 452)
 Equity – RUB 1 993 (USD 77)
 Funds in the Bank of Russia and correspondent accounts
with prime foreign banks - RUB 114 108 (USD 4 419)
 Daily average turnover of correspondent account with the
Bank of Russia – RUB 209 091 (USD 8 098)
 Daily average turnover of customers’ accounts – RUB
395 127 (USD 15 303)
Contact details of the MICEX
Settlement House
 1/13
Sredny Kislovsky Pereulok, building 8, Moscow
125009, Russia

tel: +7 095 705 96 19, fax: +7 095 745 81 22
SWIFT: MICURUMM
Теlex: 485391, 485393 MICU RU

http://www.rpmmvb.ru
@
[email protected]
Thank you
for your attention!