Euroclear Bank and NSD head into Russia
29 March 2012 Brussels and Moscow
Image: Shutterstock
Euroclear Bank and National Settlement Depository (NSD) have announced plans to provide cross-border services for all classes of Russian domestic securities.
Pending regulatory approvals, settlement, custody and related services will be provided for stock exchange and OTC equity trades, government (OFZ) and corporate bond transactions.
More than 1,300 of the world’s most active international trading firms with Euroclear Bank accounts will be able to settle bilateral trades at Euroclear Bank and with counterparties in Russia through the link with NSD. Russian domestic securities will also become eligible as collateral in Euroclear Bank’s triparty services.
Eddie Astanin, chief executive officer of NSD said: “A new law in Russia will recognise NSD as Russia’s central securities depository and allow NSD to open a ‘foreign nominee account’ for Euroclear Bank to develop the direct link. Partnering with Euroclear Bank clearly adds value to our clients and to the Russian economy by easing cross-border flows between the Russian and international investment communities. It helps advance the goal of creating a Russian Financial Centre.”
Frederic Hannequart, chairman of Euroclear Bank added: “It is very important to create the type of service for Russian securities that will appeal to our sophisticated client base. Having an easy and convenient post-trade arrangement in place for cross-border trades will facilitate foreign investor flows to MICEX-RTS, as well as boost domestic liquidity for all Russian securities.”
Pending regulatory approvals, settlement, custody and related services will be provided for stock exchange and OTC equity trades, government (OFZ) and corporate bond transactions.
More than 1,300 of the world’s most active international trading firms with Euroclear Bank accounts will be able to settle bilateral trades at Euroclear Bank and with counterparties in Russia through the link with NSD. Russian domestic securities will also become eligible as collateral in Euroclear Bank’s triparty services.
Eddie Astanin, chief executive officer of NSD said: “A new law in Russia will recognise NSD as Russia’s central securities depository and allow NSD to open a ‘foreign nominee account’ for Euroclear Bank to develop the direct link. Partnering with Euroclear Bank clearly adds value to our clients and to the Russian economy by easing cross-border flows between the Russian and international investment communities. It helps advance the goal of creating a Russian Financial Centre.”
Frederic Hannequart, chairman of Euroclear Bank added: “It is very important to create the type of service for Russian securities that will appeal to our sophisticated client base. Having an easy and convenient post-trade arrangement in place for cross-border trades will facilitate foreign investor flows to MICEX-RTS, as well as boost domestic liquidity for all Russian securities.”
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