Clearstream is aiming to open a direct account with the National Settlement Depository (NSD), the new Russian CSD in Moscow by year-end.
The ICSD confirmed its timings on Thursday as it welcomed Russias Federal Financial Markets Services (FFMS) announcement the day before that NSD has been granted CSD status. The creation of this entity is an important part in the reform of Russian capital markets and developing Moscow as an international financial center.
The CSD law came into effect on Jan. 1 this year. FFMSs decided to include Clearstream in its select list of entities authorized to assume foreign nominee holder status. Once live, the new account at NSD will deliver an efficient means to hold fixed income assets namely government debt instruments, municipal bonds and corporate bonds under a legally recognized nominee ownership structure exclusive to ICSDs.
(JDC)