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

2 Launch Date of BESP July 1, 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, 2007 The first few payments came through. V. Kulipanov10 IRSF, Moscow, Nov 1, 2011

3 All Russian credit institutions became BESP members BESP system CBR Branches Bank DP Bank Non-bank AP V. Kulipanov10 IRSF, Moscow, Nov 1, 2011

4 All Russian credit institutions became BESP members BESP system CBR Branches Bank DP Bank AP Non-bank AP V. Kulipanov10 IRSF, Moscow, Nov 1, 2011

5 Federal Treasury became BESP member BESP system CBR Branches Bank DP Bank AP Non-bank AP V. Kulipanov10 IRSF, Moscow, Nov 1, 2011

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

V. Kulipanov10 IRSF, Moscow, Nov 1, 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 V. Kulipanov10 IRSF, Moscow, Nov 1, 2011

9 Participant BESP Bank of Russia VPN SWIFT transport Conversion SWIFT formats new payment instrument V – shape scheme Participant New transport facilities Participant 2011 V. Kulipanov10 IRSF, Moscow, Nov 1, 2011

10 Last but not least… It is time to celebrate the anniversary (10 th IRSF)

V. Kulipanov10 IRSF, Moscow, Nov 1, Eliminating long holidays BESP system will be availableBESP system will not be available

12 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. Kulipanov10 IRSF, Moscow, Nov 1, 2011

13 The BESP present-time schedule of business day Preliminary phase Regular phase Final phase Moscow time (GMT+3) V. Kulipanov10 IRSF, Moscow, Nov 1, 2011

14 Anticipated extension of business day Preliminary phase Regular phase Final phase Moscow time (GMT+3) V. Kulipanov10 IRSF, Moscow, Nov 1, 2011

15 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. Kulipanov10 IRSF, Moscow, Nov 1, 2011

16 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. Kulipanov10 IRSF, Moscow, Nov 1, 2011 Under construction …

Negotiations with CLS Bank International for rouble inclusion 17 The plans for further development of FM in Russia envisage joining CLS system. The first bilateral seminar is scheduled for late November V. Kulipanov10 IRSF, Moscow, Nov 1, 2011

Thank you for attention!