On Thursday, National Settlement Depository (NSD) acquired 97.76% of Depository Clearing Company (DCC) shares, the next step in the integration of Russias two existing depositories to create an official, regulated CSD in the market.
The NSD Supervisory Board approved the acquisition of DCC March 30. Settlement Chamber RTS, the settlement arm of the RTS Stock Exchange, which itself merged with the MICEX exchange in August, will also be integrated into NSD.
“The acquisition of DCC stake by NSD is a part of the plan of integration in respect of MICEX and RTS merger held in 2011, says Eddie Astanin, chairman of the Executive Board at NSD. The integration process now is in full swing, it is being implemented in compliance with the plans; it is also being coordinated with our clients.”
Russia has been working toward a plan to develop Moscow into an international financial center, part of which includes streamlining the disparate exchanges and market infrastructures to encourage foreign investment.
“The acquisition of DCC shares by NSD will contribute to more harmonious and efficient interactions of the integrated companies and to optimization of the integration processes, says Maria Krasnova, who was appointed last week as CEO of DCC to oversee the integration of the two depositories.
Thomas Murray gave NSD an A+ rating last month, meaning the depository has low overall risk, but said market developments, including the acquisition of DCC, could alter its risk profile.
NSD said recently that it has a strategy to increase the value of assets on deposit by at least RUB30 trillion, which will allow it to reduce tariffs. It also plans to expand its product range, including corporate actions processing and multi-currency settlements on DVP using SWIFT messaging, and add services including collateral management and securities lending technology.
(CG)