Clearstream will launch its direct settlement link to the Russian market following the opening of a main account at the National Settlement Depository (NSD), the new Russian CSD, in February.
The new direct link will complement Clearstreams existing settlement services by further opening up access to the Russian capital markets via a channel and a single access point, the Russian CSD. Clearstream will offer multi-channel access to the new Russian CSD via both its CSD and its ICSD.
Through its local agent Deutsche Bank Moscow, Clearstream has already been providing a suite of settlement services in Russia since 2006. These services have included settlement in OFZ government bonds, since January 2012. Other services via Deutsche Bank Moscow have included rouble clearing capability to support new issues in the international market and domestic rouble payments in line with local requirements and practices.
As part of the direct settlement link, Clearstream will seek to offer more competitive settlement deadlines and prices, said a joint press release. Deutsche Bank Moscow will operate Clearstreams direct account with the CSD. Clearstream is also preparing to offer OTC delivery versus payment (DVP) settlement in the short term (whereby delivery occurs only if and when payment occurs) while offering free of payment (FOP) settlement in the meantime.
Mark Gem, head of Business Management and Member of the Executive Board of Clearstream, said: The opening of the new Russian CSD was a major landmark in the development of Russias capital markets. With our direct link to Russia, the market is reaching its next stage of evolution for the international investor community.
Eddie Astanin, CEO of Russias National Settlement Depository, commented: 2013 opens a new page in Russia’s movement towards full scale integration into the global financial system. Less than a year ago the law on central securities depository was adopted, and now we see that such institutions as Clearstream recognize the effectiveness of our efforts and correctness of our strategy. This event opens new opportunities forinternational investors in Russia, and in future it will be able to changeRussian issuers’ positions in the global capital market.
(JDC)