BESP SYSTEMMain features and recent

statistics

Vladimir Kulipanov

7th IRSF, ICAP, London

April 14, 2010

2

General characteristics of BESP

• Banking Electronic Speedy Payments (BESP) = RTGS of the Bank of Russia

• National-wide coverage (11 time zones)• Complete electronic technology• Built-in liquidity saving mechanisms

(bilateral and multilateral limits, offsetting of queuing payments, etc)

3V. Kulipanov 7 IRSF, London, Apr 14, 2010

Options of membership

• Special participation• Direct participation• Associated participation

CBR Head Office

BESP system

CBR Branches

4V. Kulipanov 7 IRSF, London, Apr 14, 2010

Options of membership

• Special participation• Direct participation• Associated participation

CBR Head Office

BESP system

CBR BranchesBank DP

5V. Kulipanov 7 IRSF, London, Apr 14, 2010

Options of membership

• Special participation• Direct participation• Associated participation

CBR Head Office

BESP system

CBR BranchesBank DP

Bank AP

Non-bank AP

6

Quantity of Participants

Apr 01, 09 May 01, 09 June 01, 09 Jul 01, 09 Aug 01, 09 Sep 01, 09 Oct 01, 09 Nov 01, 09 Dec 01, 09 Jan 01, 10 Feb 01, 10 Mar 01, 10 Apr 01, 100

100

200

300

400

500

600

196

198

198

199

200

201

203

203

204

205

205

205

207

299

324 34

5

367 38

4 397 40

9

435 44

7 457 46

9 484 49

2

380

383 39

2 411

436

459 46

9 476 49

0

493 50

4 509 52

0

SSP DSP ASP

7

Value moved via BESP

Mar 0

9

Apr 09

May

09

Jun 0

9

Jul 0

9

Aug 09

Sep 09

Oct

09

Nov 09

Dec 09

Jan 1

0

Feb 10

Mar 1

00

1

2

3

4

5

6

7

8

9

DSP SSP ASP

Trl

n

RU

R

8

BESP share* in Bank of Russia payment system

Bank of Russia PS except BESPBESP

26,4%

73,6%

* In terms of RUR value for the Q4, 2009

9

Three phases of BESP business day

08-00 09-00 21-00 21-30

Preliminary phase Regular phase

Final phase

Moscow time (GMT+3)

Moscow time (GMT+3)

10V. Kulipanov 7 IRSF, London, Apr 14, 2010

Views on liquidity

En

tire

liq

uid

ity

of

DP

Ava

ilab

le li

ne

of

ove

rnig

ht

cred

it

Acc

ou

nt

bal

ance

Total liquidity

Liq

uid

ity

in B

ES

PL

iqu

idit

y in

L

oca

l PS

AcBlnc+OvnLn BESP+LocalPS

11V. Kulipanov 7 IRSF, London, Apr 14, 2010

Liquidity bridgebetween BESP and Local payment system

Liquidity in BESPLiquidity in Local PS

12V. Kulipanov 7 IRSF, London, Apr 14, 2010

Liquidity in BESPLiquidity in Local PS

Liquidity bridgebetween BESP and Local payment system

13

Information on the Web

(www.cbr.ru/today/BESP/) – in Russian(www.cbr.ru/eng/today/BESP/) – in English

This is the end of PART 1QUESTIONS PLEASE!

15

Anticipated steps in near future

• 2010 year - all Russian credit institutions are in the BESP;

• 2010 year - the directory of correlation between SWIFT’s and CBR’s BIC codes will be introduced by CBR;

• 2010 year - 2-P Regulation will be adopted;• 2010 year - New payment order will be introduced;• 2011 year – additional access to the BESP system via

SWIFT transport;• 2011 year - extending BESP operating hours (midnight –

8 p.m. MSC TmZn) ;• ~2015 year~ – CLS membership.

New development in payment regulation

Vladimir Kulipanov

7th IRSF, ICAP, London

April 14, 2010

17

Full membership in BESP

On August 6th, 2010 all domestic non-BESP banks will automatically become Associated BESP members. Nothing needs to be done on their side.

18

Directory of correlation between SWIFT’s and CBR’s BIC codes

CBR will introduce the Directory of correlation between SWIFT & CBR BIC codes. That will enable automatic conversion of Bank IDs from SWIFT messages to CBR formats and vice versa.

19

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.

By the end of 2010…

20

New form of payment order

New form of payment order will be introduced in addition to existing one. The usage is voluntary.

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.

By the end of 2010…

21

CLS membership work plan

The CBR Chairman decided to start the process of joining CLS system.

The internal work plan is now being drafted.

Thank you for attention!