Central Bank of Russian Federation (Custis: system of maintaining Lombard list)

Project Objective

To include in the Lombard list of the Bank of Russia the securities serving as ensuring pledge on the credit it is necessary to perform certain procedures: control of securities regarding accomplishment of mandatory requirements of the Bank of Russia, the statement of the fact of their inclusion in the list and publication of the filled-up list. For the maximum automation of these processes by Custis company in close interaction with specialists of Department of providing and control of transactions in financial markets of the Bank of Russia (DOKOFR) the system of maintaining the Lombard list of the Bank of Russia was created.

Project progress

Development and deployment of a system (2009-2010)

The project was begun in the summer of 2009. As premises for its start the decision of the Central Bank of the Russian Federation on expansion of list of issuers and types of securities which joined in the Lombard list served. It, in turn, increased possibilities of banks for increase in liquidity and supported the Russian stock market.

System development was made in parts. During design functional units and points of interaction between them were selected, priorities are defined and tough terms of implementation are set.

Consecutive development and deployment of a system in parts provided:

• first-priority creation of the most important functionality;
• soft junction to development and deployment of less critical functionality without which a system could function at the first stages;
• deep immersion in a context and careful study of each functional unit by all participants of process;
• high quality of both system model (architecture), and the developed program code.

Development and upgrade of a system (2011)

In 2011 the Central Bank of the Russian Federation made the decision to expand the accessibility of credit institutions to the refinancing mechanism through their repo transactions with the Bank of Russia. For these purposes the program for access of banks to repo transactions through the Saint-Petersburg Currency Exchange (SPCE) was started.

In connection with this program there was a need of completion of a number of the systems functioning in DOKOFR including the systems of maintaining the Lombard list of the Bank of Russia.

Within the project on upgrade by specialists of Custis company the analysis of the processes connected with carrying out repo transactions by the Bank of Russia through the St.Petersburg Interbank Stock Exchange was carried out and the solution allowing to use as much as possible already functioning systems including the system of maintaining the Lombard list is proposed. The project of completion got approval in the Bank of Russia and was implemented then changes were successfully tested on test data in DOKOFR.

Description of result

The created system of maintaining the Lombard list provides:

• maintaining various reference and operational information on securities, necessary for making decision on their inclusion in the Lombard list of the Bank of Russia;
• preparation of necessary reports and other documents for reconciliation procedure and change of the Lombard list;
• preparation of information for the publication on the website of the Bank of Russia;
• unloading of data for the currency exchanges MICEX and St.Petersburg Interbank Stock Exchange.

A system is integrated with other information systems which are used in DOKOFR that provides uniform and complete information space. So, in the system of maintaining the Lombard list the list of those securities which are accepted in providing on repo operations is selected. Integration allowed to use this information in other IT system of the Bank of Russia which provides holding the repo auctions.

Specialists of DOKOFR note that use of a new system increased transparency, quality and speed of accomplishment of the processes connected with maintaining the Lombard list.