BESP (Russian RTGS)
implementation:
up-to-date state and
development perspectives
Bolshakov Mikhail
London, 9th IRSF
April 12, 2011
Content
1. Bank of Russia payment system
development concept
2. Financial market infrastructures (FMI)
and Bank of Russia payment system
interaction instruments
3. Access to the BESP system through
SWIFT transport
4. Negotiations with CLS Bank
International for rouble inclusion
2
1. Bank of Russia payment system
development. Steps done.
• Bank of Russia payment system
development concept till 2015
Approved by the Board of Directors of the Central Bank
of the Russian Federation (Protocol No. 16 of July 16,
2010)
• Nearly all CI became BESP members
All credit institutions, which were not in liquidation
process, automatically joined BESP system on August
27, 2010.
3
1. Bank of Russia payment system
development prospect (centralization)
interlinking
RC-1
RC-2
RC-… RC-77 RC-78
2011 year
federal
component
offsetting of non-urgent
payments
2013 year
From regionally localized to fully centralized structure
From general-purpose functionality to specialized services for urgent and non-urgent payment
4
1.
Main goals on the first
development stage
• Introduction of uniform working time
• Choice of the manner of liquidity distribution
between BESP and Federal component
system
• Choice of the settlement rules in Federal
component system
• Choice of participants inclusion rules into
BESP and Federal component system
5
1.
BESP system evolution
4th quarter 2008
4th quarter 2009
1%
99%
4th quarter 2010
Payments volume
6
1.
BESP system evolution
Billions
of roubles
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
1 quarter 2008
1 quarter 2009
DSP
ASP
1 quarter 2010
1 quarter 2011
SSP
7
1.
Bank of Russia
payment system tariffs
Type of service
RUB
EUR (1:40)
Intraregional electronic payments
7-201
0.175-0.5
Interregional electronic payments
8-24
1
0.2-0.6
Payments carried out through the BESP system
express payments of direct participants
30
0.75
regular payments of direct participants
25
0.625
regular payments of associated participants
20
0.5
9-13
0.225-0.325
Information services in the BESP system
Discount rates in the BESP system
Number of payments
Discount rate, %
from 301 to 500
4
from 501 to 1000
5
over 1000
6
1
- depending on the transmission time period
8
2.
Peculiarities in FMI and Bank of Russia
payment system interaction
FMI are simple clients in BESP system
– Now FMI are represented by NSD and MICEX
indirectly
Peculiarities in interaction with BESP system
– Liquidity distribution
– Limited set of payment instruments (even without
direct debit)
– Absence of special instruments for DvP, PvP
schemes implementation
9
2.
FMI and Bank of Russia payment
system interaction instruments
• Direct debit instrument in BESP system
– For Bank of Russia own operations
– To simplify interaction of FMI and participants
• REPO implementation for BESP and NSD
clients
10
2.
Preliminary REPO implementation
scheme
Bank of Russia
DSP
CI
NSD
MICEX
11
3.
New transport facilities
V – shape scheme
BESP
FIN – main interaction
FileAct, MT999 – users directory
new payment
instrument
Conversion
2011
MT103 – payments
SWIFT
formats
MT992, MT995 – queries
2011
MT996, MT998 – answers
MT900, MT910 –
debit/credit approval
MT202 – with new
payment instruction
SWIFT
transport
Bank of Russia
VPN
DSP, ASP
Participant
ParticipantParticipant
DSP
CLS bank
(2013?)
12
3.
New payment instruments
• Payment Instruction STP compatible with
SWIFT formats
– Fields length compatible
– STP rules of field to field content conformity
• New rules of payment instruction
processing increasing STP level
– Fund transfer decision on digital requisites
– Execution of payment instructions with fields
in English for payments that are not own bank
payments
13
The model of new SWIFT compatible instrument
utilization in payment instructions flow
Payment
system
BoR
Instruments
Organizations
3.
Credit Institutions
SWIFT participants
STP
Including non-residents
DSP
translation to
0401070
MT103
MT202
Payment instruction
0401070
0401070
SWIFT
transport
BESP system
14
The model of new SWIFT compatible instrument
utilization in payment instructions flow
Payment
system
BoR
Instruments
Organizations
3.
Credit Institutions STP
SWIFT participants
translationIncluding
to
non-residents
DSP
MT103,MT202
MT103
MT202
Payment instruction
0401070
0401070
SWIFT
transport
BESP system
15
4.
Negotiations with CLS Bank
International for rouble inclusion
Estimate rouble inclusion in CLS – 2 years
16
Thank you for attention!