MICEX connects government securities market to National Depositary Center


On 11 August, 2004, the Moscow Interbank Currency Exchange (MICEX) and the National Depositary Center (NDC) launched information exchange between the trading and the depositary systems in the government securities market (GSM) in the real-time mode.

The new software, providing the gateway exchange of information, will enable GSM dealers to considerably improve the management of depo positions in the trading system in the government securities market.

"We decided that dealers needed that option when the number of transactions in the RF eurobonds with settlements in rubles increased in the government securities market", said Eddy Astanin, Director of the MICEX Department of Government Securities and Money Market Instruments. "At present, participants can conclude transactions in the RF Eurobonds both in the MICEX Stock Market Section (with settlements in the par currency), and the Government Securities Section (with settlements in rubles). In the government securities market, the RF Eurobonds are also used in repo operations against the Bank of Russia. Before, the time of the appearance of information from the NDC on the reservation of securities by a dealer for transactions in the GSM, after their transfer from the Stock Market Section, in the GS trading system was discrete. As a result, participants procrastinated in concluding transactions. Now, we have solved this problem".

Since February 2004, the total turnover of transactions in the RF Eurobonds with settlements in rubles in the GS trading system has reached 7,4 billion rubles.

According to Denis Solovyov, Deputy Director of the NDC, a similar technology was implemented in March, 2004, to facilitate exchange of information between the NDC and the MICEX Stock Market Section. The latest innovation is part of the NDC's strategy to organize a high technology settlement depositary which would serve all segments of the Russian securities market.

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