MFS Depository Establishes Backup System

Yesterday USAID’s Capital Markets Project donated to the JSC MFS Depository (Interregional Depository and Clearing/Settlement Organization, Mizhregionalny Fondovy Sojuz) the technical equipment necessary to develop a detached backup system to serve depository activities, which is to switch on to duplicate the main system should it fail.   According to MFS chairman of the board Mykola Shvetsov, the equipment values at about $1 million.  Currently, MFS meets six out of nine 30G and ISSA recommendations: T+1 transaction confirmation standard, client transaction confirmation standard, Delivery vs.  Payment (DVP), Free of Payment (FOP), T+3 settlement standard and codification.  The MFS may not satisfy the remaining three requirements as this contravenes the legislation.