Clearstream has cut its prices for its Russian OFZ custody services. The cut, up to about 50% lower than existing rates, is intended to help international customers to benefit from securities law reforms in the Russian market, the company said.
Clearstream, which has offered the Russian market to its customers since 2006 and OFZ bonds since January 2012, went live with its direct link to the Russian National Settlement Depository (NSD) today. This move enables Clearstream to take advantage of recent reforms in Russian securities laws, which aim at enhancing the protection of investors looking to settle and hold the Federation’s benchmark sovereign bond in the international market.
Clearstreams existing OFZ holdings will now be automatically transferred to its new NSD account, and Deutsche Bank Moscow is confirmed as Clearstreams official account operator for the new link.
The ICSD will be rolling out its custody and settlement services in a phased approach:
– Phase 1, starting 28 February 2013, will offer Clearstream customers free of payment (FOP) settlement in OFZ bonds.
– Phase 2, due for roll-out in Spring 2013, will introduce delivery versus payment (DVP) settlement whereby delivery occurs only if and when payment occurs. Clearstream settlement for municipal and corporate bonds will also be introduced in the coming months.
(JDC)