Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 3

The industry worldwide must satisfy the need for efficient, fast settlement by full adherence to the International Securities Numbering process (ISO 6166) and uniform usage of ISO 15022 based standards for all securities messages. The industry should seek to introduce a global client and counterpart identification methodology (BIC - ISO 9362) to further facilitate straight through processing. Applications and programmes should be structured in such a way as to facilitate open inter-action between all parties.

1.	Does the market use ISIN as the primary securities identification code?	For equities - the market uses the state registration number of the issuer as the primary securities identification codes. Some of the equities have no ISIN number. For bonds - both state registration number and ISIN is considered as the primary securities identification codes. For state bonds the state registration number is the same as its ISIN.
2.	Are the major participants in the market linked electronically?	All major participants in the market linked electronically through RTS (Russian trading system), MICEX (Moscow Interbank Currency Exchange) and REUTERS.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	DCC - no. It uses its own communication system. NDC - no. It uses its own communication system. VTB - yes.
4.	Does the market operate standard identification codes for counterparties or client accounts and, if so, how do (or could) these fit into a single global identification methodology?	There is no standard identification codes for the counterparties on the market. DCC, NDC and VTB use their own code system (depo account numbers) to identify the counterparties. RTS and MICEX have their own codes for brokers and dealers on the market.