Clearstream Nudges DVP Settlement in Russia

The post-trade services provider, a subsidiary of Deutsche Börse, is hoping to mark a shift within the Russian market from its current system of settling in cash batches, to a system which is closer to real-time settlement.

According to Clearstream, its new DVP settlement solution represents a more efficient and secure secure, and offers more real-time settlement compared to the free-of-payment option. DVP depends on cash being paid up front before the delivery of securities.

"I am delighted we keep developing and enhancing our settlement and custody services in the Russian market," says Jeffrey Tessler, chief executive officer of Clearstream. "Our new DVP settlement solution is an exciting milestone as it helps pave the way for the Russian market to move more towards a real-time settlement environment, keeping up with other capital markets around the world as part of Russia's capital market reform."

The firm will also introduce Russian municipal and regional bonds for settlement through the National Settlement Depository, its new direct link to the new Russian Central Securities Depository. Clearstream also plans to introduce settlement for Russian corporate bonds and to enhance its access model for Russian equities once it receives regulatory approval.