Russias CJSC Depository Clearing Company (DCC) will stop settling trades executed in the Standard sector and cease accepting securities posted as collateral for trades in the Standard sector and FORTS Derivatives market beginning September 3 as part of the harmonization of the depository infrastructure in the country.
National Settlement Depository (NSD), which in May started securities settlement of trades executed in the Standard sector and in July began accepting securities as collateral for the market, now solely will handle the activities.
Russia has been working to streamline its disparate market infrastructures as part of a drive to turn Moscow into an international financial center. NSD and DCC both have served depository functions but neither was regulated as an official central securities depository (CSD). In November last year, the government issued a federal law mandating the creation of a regulated CSD, a status for which NSD since has applied.
The two Russia stock exchanges, Moscow Interbank Currency Exchange (MICEX) and Russian Trading System (RTS), were merged last year as part of the same drive, and soon may be rebranded as a singular Moscow Exchange. NSD also acquired DCC and is working to harmonize the two.
(CG)