Anticipated changes in BESP system of CBR Vladimir Kulipanov 10 th IRSF, MICEX, Moscow November 1, 2011.

Anticipated changes in BESP system of CBR

Vladimir Kulipanov

10th IRSF, MICEX, Moscow

November 1, 2011

2

Launch Date of BESP

•July 1, 2007.All regulated documents were adopted and became effective by that date. Technical preparations were finished. The first participants were in. The system started, however there were no payments until…

•December 21, 2007The first few payments came through.

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

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All Russian credit institutions became BESP members

BESP system

CBR Branches

Bank DP

Bank

Non-bank AP

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

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All Russian credit institutions became BESP members

BESP system

CBR Branches

Bank DP

Bank AP

Non-bank AP

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

5

Federal Treasury became BESP member

BESP system

CBR Branches

Bank DP

Bank AP

Non-bank AP

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

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The vision of development

The Concept for the CBR’s payment system development has been adopted by the Board of

Directors of CBR

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

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BESP for CBR

Bank of Russia started to utilize BESP for it’s own market operations

CBR

BESP share in Bank of Russia payment system

88

14%

86%

Q3 - 2010 16%

84%

Q4 - 2010

20%

80%

Q1 - 2011 18%

82%

Q2 - 2011

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

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ParticipantParticipant

BESP

Bank of Russia VPN

Bank of Russia VPN SWIFT

transport

SWIFT transport

Conversion SWIFTformats

new payment instrument

V – shape scheme

ParticipantParticipant

New transport facilities

ParticipantParticipant

2011

2011

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

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Last but not least…

It is time to celebrate the anniversary (10th IRSF)

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

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Eliminating long holidays

BESP system will be available BESP system will not be available

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BESP - FMIs interface

To raise extra liquidity in the BESP system in real time mode (intraday REPO with the Bank of Russia on a DVP basis)

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

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The BESP present-time schedule of business day

08-00 09-00 21-0021-30

Preliminary phase Regular phase

Final phase

Moscow time (GMT+3)

Moscow time (GMT+3)

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

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Anticipated extension of business day

08-00 09-00 21-0021-30

Preliminary phase Regular phase

Final phase

Moscow time (GMT+3)

Moscow time (GMT+3)

01-00 02-0022-00

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

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News in 2-P Regulation

If the originator of the payment instruction is non RF resident (client or bank), then the correspondent RF resident Beneficiary Bank will be allowed at its own discretion and its own risk to neglect the discrepancies between the text field “Beneficiary Name” and the true name of the Beneficiary. This opportunity should be put in the Banking Account Contract between the Beneficiary and the Beneficiary Bank in advance.

Under discussion …

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

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New form of payment order

This form will enable indication of intermediary banks (up to 3) in addition to Originator Bank and Beneficiary Bank.

This form and the mapping fields allow 100% STP conversion from SWIFT MT103 and SWIFT MT202 to CBR formats and vice versa.

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

Under construction …

Negotiations with CLS Bank International for rouble inclusion

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The plans for further development of FM in Russia envisage joining CLS system.

The first bilateral seminar is scheduled for late November 2011.

V. Kulipanov 10 IRSF, Moscow, Nov 1, 2011

Thank you for attention!