The National Depository Center (NDC) of Russia has successfully completed technological preparations to enable NDC clients to use its direct account opened with Euroclear Bank. With effect from 19 May 2008, qualified members of NDC will be able to settle transactions and safekeep international securities via NDC’s account in Euroclear Bank, the Brussels-based international central securities depository (ICSD).
Building on a Memorandum of Understanding signed with Euroclear Bank in April 2007 to explore information-sharing initiatives and potential future co-operative activities, this first landmark enables NDC to increase its service offering by facilitating access for its clients to a wide range of international securities, such as Russian-issued eurobonds, sovereign and corporate bonds from over 30 international markets, and equities from over 27 markets.
Nikolay Egorov, Chief Executive of the NDC, said:
“The beginning of direct operations with Euroclear Bank is an important step in our continued cooperation with this leading global provider of securities settlement and related services. Euroclear Bank’s ICSD status provides our clients with a full range of depository services in accordance with accepted international standards. This account opening exemplifies the dynamic development of Russia as a capital market – a market that firmly believes in future integration with other capital market infrastructure providers.”
Philippe Laurensy, Director and Head of Relationship Management for Eastern Europe, Benelux and Northern Europe, stated:
“Having NDC as part of our international client base is testament to the forward-thinking direction that the Russian capital markets are taking as a whole. We are confident that the service we will offer to NDC’s qualified members will fully satisfy their settlement and asset-servicing requirements. Moreover, we look forward to other initiatives in the region that further strengthen the financial capital markets.”
Note to Editors
About Euroclear
Euroclear is the world’s largest provider of domestic and cross-border settlement and related services for bond, equity, derivatives and fund transactions. User owned and user governed, the Euroclear group includes Euroclear Bank, based in Brussels, as well as Euroclear Belgium, Euroclear France, Euroclear Nederland and Euroclear UK & Ireland. Euroclear also owns EMXCo, the UK’s leading provider of investment-fund order routing. The total value of securities transactions settled by the Euroclear group is in excess of EUR 560 trillion per annum, while assets held for clients are valued at more than EUR 19 trillion. Euroclear Bank is rated AA+ by Standard & Poor's and Fitch Ratings.
About NDC
Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in Russia, servicing the full range of equity securities of Russian issuers. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, more than 95% of transactions conducted in the corporate and regional bond markets, and stock exchange share transactions. NDC provides custody of global certificates and depository accounting for 99% of corporate bond issues, and 95% of sub-federal and municipal bond issues. The international rating agency Thomas Murray has assigned NDC an A+ rating as a central depository. For the first quarter 2008, the value of assets in custody was more than RUR4.2 trillion. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numbering agency, the substituting numbering agency for the CIS, authorized to assign the international ISIN and CFI codes. It is also a member of the international accounting infrastructure, providing settlements on the global financial markets using direct accounts at Clearstream Banking S.A. and Euroclear Bank. It also holds accounts at the Central Depository of the Republic of Kazakhstan and the NDC of the Republic of Azerbaijan.
Among NDC’s founders are MICEX and Bank of Russia (the founders’ shares in the ownership of NDC are 46.7% and 39.3% respectively, and in the votes 50.2% and 42.3% respectively). Members include GPB OJSC (Gazprombank), Evrofinans Mosnarbank, Rosbank, VTB Bank (Vneshtorgbank), Bank of Moscow, Rossiysky Credit Bank, Vneshekonombank, ING Bank Eurasia, JP Morgan Bank International LLC, UniCredit, Deutsche Bank, and Sberbank. The Partnership also has a stake in Depository Clearing Company CJSC and in Settlement Depository Company CJSC.
For further information about NDC: www.ndc.ru, or NDC Public Affairs Department: +7 495 232 0910, .
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