Russian CSD the National Depository Cetre (NDC) is raising the valuation ceiling on secirities transferable across the bridge between the NDC and the Depository Clearing Corporation (DCC) from US$15 million to US$50 million. The increase was announced today by NDC director Nikolai Egorov.
The NDC-DCC bridge helps link the the two principal securities trading systems MICEX and RTS – in Russia, by facilitating securities transfers between NDC, which services MICEX-listed securities, and DCC, which services RTS securities.
The increased limit, which took effect this week, was authorized on the recommendation of the NDC Risk Management Committee. It follows a decision by DCC to raise its liability insurance cover to US$50 million. The limit on securities transferable by NDC-DCC bridge was last set on 1 July 2006, and reflected DCC insurance cover and share capital in effect at that time. The new limit will allow a reduction in the number of re-registrations and thus will further decrease NDC and DCC depositors’ costs for servicing of their securities. NDC is the settlement depository of MICEX Group, and an authorized depository for most issues of state, corporate, municipal and sub-federal bonds in Russia. It services 100% of deals conducted in the state bonds market and, during the most recent three months, more than 95% of turnover in corporate shares and bonds, and sub-federal and municipal bonds. NDC’s founders include Bank of Russia and MICEX CJSC, and its membership encompasses Sberbank, International Moscow Bank, JP Morgan Bank International LLC, Vneshtorgbank OJSC, Bank Rossiysky Credit OJSC, Evrofinans Mosnarbank OJSC, Rosbank, Gazprombank CJSC, ING Bank Eurasia CJSC and Deutsche Bank LLC.