Clearstream will launch its direct settlement link to the Russian market following the opening of a main account at the National Settlement Depository (NSD), the new Russian CSD, in February 2013.
The move follows months of progress through technical, legal and regulatory steps in close cooperation with the NSD. The new direct link to the Russian CSD will complement Clearstream's existing settlement services by further opening up access to the Russian capital markets via an efficient channel and offering a single access point, the Russian CSD. Leveraging its extensive post-trade infrastructure, Clearstream will offer a robust multi-channel access to the new Russian CSD via both its central securities depository (CSD) and its international central securities depository (ICSD).
Through its local agent Deutsche Bank Moscow Ltd., Clearstream has already been providing a suite of settlement services in Russia since 2006. These services have included settlement in OFZ government bonds, since January 2012. Other services via Deutsche Bank Moscow Ltd. have included rouble clearing capability to support new issues in the international market and domestic rouble payments in line with local requirements and practices.
Its direct link to the Russian CSD now set to go live in February 2013, Clearstream intends to utilise its market experience to offer direct access to the Russian market at most competitive prices and deadlines. Deutsche Bank Moscow Ltd. will operate Clearstream's direct account with the CSD, continuing to provide customers with optimal services through its well-established local expertise. To deliver the best market solution, Clearstream is also preparing to offer over-the-counter (OTC) delivery versus payment (DVP) settlement in the short term (whereby delivery occurs only if and when payment occurs) while offering free of payment (FOP) settlement in the meantime.
Mark Gem, Head of Business Management and Member of the Executive Board of Clearstream, said: "The opening of the new Russian CSD was a major landmark in the development of Russia's capital markets. With our direct link to Russia, the market is reaching its next stage of evolution for the international investor community. Clearstream is delighted to confirm its direct link to the Russian CSD and will offer a superior service at a competitive price whilst covering a broad range of securities like OFZ bonds and other securities for the international investor community. Our link will help open the Russian capital markets up more readily to overseas investors and traders by allowing securities' transactions to be settled more efficiently - in Russian roubles - and more securely within a single system."
Eddie Astanin, Chief Executive Officer of Russia's National Settlement Depository, commented: "2013 opens a new page in Russia's movement towards full scale integration into the global financial system. Less than a year ago the law on central securities depository was adopted, and now we see that such institutions as Clearstream recognize the effectiveness of our efforts and correctness of our strategy. This event opens new opportunities for international investors in Russia, and in future it will be able to change Russian issuers' positions in the global capital market."