In October 2021, DOM.RF offered a new market instrument designed for the refinancing of a portfolio of mortgage-backed securities guaranteed by DOM.RF – repo trades with a securities basket and collateral management by National Settlement Depository (NSD). Bank Saint Petersburg will act as counterparty in such repo trades.
The growth of the mortgage bond market is a priority for DOM.RF, a Russian housing development institution, and a key tool to achieve the targets set out in the Russia’s national development plan until 2030 and in the National Project “Housing and Urban Environment”. Earlier in 2021, mortgage-backed securities guaranteed by DOM.RF were added in a basket of securities for Federal Treasury’s repos with collateral management by NSD.
“We pay great attention to improvement of the market infrastructure for mortgage-backed securities guaranteed by DOM.RF and appreciate our fruitful cooperation with NSD and the Moscow Exchange Group. After the launch of Federal Treasury’s repo auctions for mortgage-backed securities guaranteed by DOM.RF and market repos available through NSD, investors now have the widest opportunities to access liquidity that only match the opportunities offered by the government bond market”, said Alexander Garifulin, Managing Director, DOM.RF.
“We are happy with the way how our cooperation with DOM.RF progresses, with NSD providing more opportunities to market participants to access liquidity in the market, using post-trade services and the collateral management system. With the activity in the inter-dealer market picking up, we expect that the outsourcing of standard repo trade services to the market infrastructure can become a common practice for a wide range of market players”, added Alina Akchurina, Managing Director for Collateral Management, NSD.
“Such trades provide market participants with extra opportunities for liquidity management and make it possible to expand the list of securities provided as collateral, with an option to replace collateral throughout the life cycle of the trade”, commented Varvara Ponomareva, Deputy Head of Financial Market Operations, Bank Saint Petersburg.
NSD’s collateral management services help clients of the Moscow Exchange Group improve the effectiveness of settlement of liabilities relating to delivery of assets, their revaluation in repos, conduct of corporate actions, trade reporting to the Trade Repository, and regulatory reporting.