Using BESP today
Sergey Romanchuk, Head Of FX&MM
SCB Metallinvestbank, President ACI Russia.
9th Russian Ruble Settlement Forum, London, 12.04.2011
ACI Russia:
- affiliated with ACI – The Financial Markets Association, the largest wholesale
association on the international financial market, with about 13 500 members from 80
countries, with 68 national associations .
- assists Russian banks and other financial institutions to become the part of the
international financial market;
- conducts seminars, meetings and other events devoted to the problems of the
international foreign exchange market, the national economy and the banking system;
- provides the network for the technology interchange;
- works as gateway to Russian FX&MM for foreign companies.
- you could contact ACI Russia on any queries and for the help regarding Russian
market: council@aci-russia.ru, www.aci-russia.ru
9th Russian Ruble Settlement Forum, London, 12.04.2011
Joint Stock Commercial Bank Metallinvestbank:
- is one of the largest operators of the Russian foreign exchange market according to
the volume of trading;
- serves a lot of correspondent accounts of variety Russian and international banks;
- is a market maker for the most of existing electronic platforms where RUB is trading
(MICEX, ICAP EBS, Reuters Matching, CME, RTS) ;
- is trying to be on the edge of the technical decisions, providing trading and
settlements in rubles;
- is consistently working on developing Russian FX and MM, supporting markets
initiatives;
- is one of the first “participants” of the BESP (July 2007), using it since the May 2010.
- contact us rsa@metib.ru
9th Russian Ruble Settlement Forum, London, 12.04.2011
Problems and weaknesses of the BESP application:
- using BESP is still fragmentary; a lot of banks announced as BESP participants are
not actually using it;
- there were no incentives for the migration to the BESP in Moscow region;current
regional “shift” system is covering most of the customers needs;
- the tariffs policy of the BESP is not stimulating;
- the costs of the development and support of the two payments systems at the same
time in banking software are very high; there are no IT products ready to use – we
developed it in-house; the intraday liquidity is divided between two systems (you need
manually manage it).
- BESP participants, currently using it, report sometimes technical failures;
-“Initial liquidity problem” – no payments netting (as it is in the “shift” system), someone
need to be first to move funds).
9th Russian Ruble Settlement Forum, London, 12.04.2011
Tariffs of the shifts system and BESP (in rubles)
I. Shift payments inside the Moscow region
- first period of time 5,00
- second period of time 7,60
- third period of time 10,10
- after
15,10
III. Payments via BESP
1) Electronic payments of direct market participants
urgent payments
30,00
payments on general conditions
25,00
Discounts in the BESP
Number pf payments per mounth
Discount rate, %
От 5001 до 10000
0,1%
…
…
More then 40001 (maximum discount)
0,5%
Metallinvestbank’s number of payments (27.05.2010 - 11.04.2011)
In – 1224 (75 banks), out – 841 (19 banks).
9th Russian Ruble Settlement Forum, London, 12.04.2011
Progress on the BESP application:
- there is the Associate Member Participant (AMP) status, which solves some
problems: it is easy for implementation, liquidity is on the one account;
- all banks became AMP automatically in the August of 2010, even not doing anything;
clients could ask for BESP service from any bank;
- The ability to use BESP gives some advantages to the participants already
(settlements to MICEX as an important example), intraday PvP settlements between
participants in general; fast interregional payments.
- CBR announced that BESP will become the prime system for large interbank
transactions; current 5 shift Moscow regional system will be abolished in 2013;
- the payments order’s format will be moved to the form to match SWIFT requirements;
the final compatibility is planed on for August 2011;
-CBR has a goal to include RUB to the list of CLS currencies (2013-2015?);
9th Russian Ruble Settlement Forum, London, 12.04.2011
Prospects of 2010’s IRSF:
- BESP will be the main settlement system in Russia in 2011 – it is not a true yet
-Prime Brokerage service for FX RUB trading will become available soon - done
- RUB will be CLS currency in the reasonable future – CBR’s target: 2013-2015
2011’s insights:
- BESP will become finally the main payment system in 2013, when old one will
be substituted by new batch payments regional system.
- Bank’s third party BEST payments services started to be offered.
- Banks are using it more in ordinal business practice.
7th Russian Ruble Settlement Forum, London, 14.04.2010