Euroclear Bank will go live with its post-trade services for OFZs, the Russian government bonds, on February 7 via its partnership with National Settlement Depository, the Russian CSD.
Having received regulatory and operational approval, international firms trading OFZs will be able to settle and deposit OFZ positions with Euroclear beginning tomorrow. The service will begin with OTC OFZ transactions, with exchange-traded transactions being covered beginning in March.
Euroclear says OFZs it holds in safekeeping are eligible as collateral for securitized transactions where the ICSD is the tri-party collateral management agent. The ICSD says it plans to service other Russian fixed-income securities, including corporate and municipal bonds, in the coming months.
“We have worked with colleagues at the Bank of Russia, Russias Federal Financial Markets Service and the Russian Ministry of Finance to make the necessary legislative changes that will greatly enhance the appeal of Russian Federal bonds, says Eddie Astanin, CEO of the National Settlement Depository. Together with Euroclear Bank, NSD is offering the Government of Russia a broader, cheaper and more efficient way to fund the countrys growth through the bond markets.”
Euroclear initially linked to NSD in October. It now has links to CSDs in 45 countries and settles in 54 currencies. NSD itself now has links with CSDs and ICSDs in seven countries.
“The 7 February milestone will mark a new era in the ability of Russia to fund its growth and development through the international capital markets, says Frederic Hannequart, chairman of Euroclear Bank.
(CG)