On February 15, 2021, a new version of the agreement on the establishment of correspondent relations with the National Settlement Depository (NSD) entered into force. The amended provisions of the agreement allow for a new interaction procedure with the use of SWIFT – the international interbank system for transferring information and making payments. On the same day, when servicing the correspondent depo account of the NSD with the Central Securities Depository, the depository messages of the established formats were sent via the SWIFT system.
For reference. NSD is the central depository of the Russian Federation, which provides depository, settlement and cash services, acts as a repository, provides information services, liquidity management services, and technological services.
SWIFT (Society for Worldwide Interbank Financial Telecommunications) is an international interbank system for transferring information and making payments. Allows financial institutions (banks, investment companies, depositories, settlement and clearing organizations) around the world to send and receive information about financial transactions.
The Central Securities Depository of the Republic of Belarus maintains correspondent depo accounts of 28 second-tier depositories, more than 20,000 depo accounts of issuers and depositors, including the Ministry of Finance and the Development Bank of the Republic of Belarus. The total volume of securities in centralized custody is over 70 billion Belarusian rubles (over 27 billion US dollars), more than 100 thousand depository operations are carried out annually. The Central Securities Depository has established correspondent relations with the depositories of the Russian Federation, Ukraine, Kazakhstan, Armenia, Azerbaijan and Kyrgyzstan. The Central Securities Depository is a member of the international Association of National Numbering Agencies, the regional Association of Eurasian Central Securities Depositories, as well as the Association of Securities Market Participants (Belarus).
The start of the regular practical application of SWIFT on the securities market is the outcome of the two-year comprehensive preparatory work by the Central Securities Depository of Belarus.
Being within the context of the formation of the common financial market of the Eurasian Economic Union member states, the implementation of this project will directly contribute to the introduction of international financial standards into the practice of the national securities market. It will make it possible to use the global expertise in the field of information technologies to the utmost effectiveness, thus ensuring the efficiency, reliability, accuracy and continuity of settlements on securities transactions.