Working via an account operator

An Account Operator must be an organization that meets all of the following eligibility requirements:

• An Account Operator must be NSD's client being a professional securities market participant and meeting NSD's eligibility requirements to Operators.

To designate an Account Operator, the Client is required to submit to NSD a power of attorney (FormD020) describing the Operator's authority.

A Sub-account Operator must be an organization that meets all of the following eligibility requirements:

• A Sub-account Operator* must be designated strictly in compliance with the rules applicable to the particular sub-account, as prescribed by the terms and conditions of the issuance of, and dealing with, securities, the Russian laws, and agreements with issuers.
• A list of Operators of a particular sub-account type is determined by NSD in accordance with the Russian laws, agreements with market operators or clearing houses, or the Agreement. In such cases, the Client may only designate a Sub-account Operator from the list of Operators eligible to be designated in accordance with the Agreement.

To designate a Sub-account Operator, the Client is required to submit to NSD a power of attorney (FormD020) describing the Operator's authority.

* For a non-Russian resident organization to be designated as Sub-account Operator, NSD's prior approval is required.
The Sub-account Operator is required to enter into an Electronic Data Interchange Agreement and submit the necessary set of documents.

When making transactions on a DVP basis at ICSDs in a securities account or a securities sub-account(s) for which an Operator is designated, it is possible to make settlements through the Operator's bank accounts held with NSD. The procedure for opening a bank account is described here.

An Operator may be removed by the Client by revoking the power of attorney issued to the Operator or as a result of its expiry. The revocation of the power of attorney must be notified by the Client to the Depository in the form of a formal letter signed by a Client’s authorized representative.

The Depository is not liable to the Client for any acts performed by the Operator in accordance with the powers vested in the Operator by the Client.

By working through an Account Operator, an organization that is not a professional securities market participant is able to:

• Open an owner securities account directly with the central securities depository that acts as settlement depository for the Moscow Exchange and the St. Petersburg Currency Exchange;
• Settle securities trades made on the Moscow Exchange, St. Petersburg Currency Exchange, or in the OTC market;
• Speed up the receipt of dividends, coupon income, redemption proceeds, or other distributions on securities, as paid by issuers to securities owners; and
• Use the electronic data interchange process that contributes to risk and cost reduction.

General rules of giving instructions:

1 If a sub-account of the particular type may be opened/closed (transaction code: 90/91).
2 A Sub-account Operator may give an instruction for registration of bank account details for the purpose of making settlements on a DVP basis (transaction code: 07, purpose: 10).

General rules of delivery of statements/notices:

Participation in Corporate Actions (CA) using the ISO format:

Participation in Corporate Actions (CA) with respect to non-Russian securities:

Income on securities is paid using the bank account details registered for the Client's securities account in which the securities are held.
The procedure for registration of bank account details for the purposes of payment of income on securities is described in the User Manual for Registration of Bank Account Details posted on NSD's web site here.

The general information regarding the procedure for the receipt of income on securities is available here.