Securities record-keeping standards: Bank of Russia’s concept
The Bank of Russia intends to reform the system of interaction between institutions comprising the record-keeping infrastructure. According to the draft concept, depositories and registrars will be obliged to process securities according to unified formats of electronic messages rather than various forms of information exchange.
The transition to a unified communication language will reduce costs for market participants, simplify and speed up both securities transfers and settlements, and corporate actions.
Currently, record-keeping institutions interact on a one-to-one basis using numerous data formats and information exchange channels and protocols. Technological heterogeneity across systems and different documentation requirements slow down business processes, ultimately reducing the speed and quality of customer service.
The Bank of Russia has already taken the first step to improve the quality of services provided by record-keeping institutions by defining the rules for fast transfers of securities. The launch of this service will significantly simplify the customer journey.
The next step is to introduce albums of unified formats of electronic messages about securities and transactions therewith. The Bank of Russia undertakes to elaborate these albums based on ISO 20022 and in consultation with market participants, self-regulatory organisations, and software developers. Once these formats become part of business processes, depositories and registrars will be able to exchange data and settle transactions almost in a real-time mode.
The transition to unified standards of information exchange within the record-keeping infrastructure will be phased. The reform is expected to take at least five years.