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Russia advances in post-trade services
22 January 2014
Recent law changes enable launch of post trade offering for corporate and municipal bonds
The Russian market is set to benefit from the launch of
cross-border post-trade services for Russian corporate and
The launch - carried out by international central securities
depository (ICSD) Euroclear and Russia's CSD National
Settlement Depository, has been made possible by recent
amendments to Russian law.
Sweeping changes were made to the Tax Code, and the laws on
securities market and joint stock companies.
"We endeavour to attract investors, to make our market more
transparent and to raise interest to Russian securities," said
the minister of finance of the Russian Federation Anton
He added: "I am confident that this is an important step
towards establishing an International Financial Centre in
Moscow that aims at providing better accessibility and lower
cost of long-term financing for Russian companies."
Eddie Astanin, chairman of the NSD's executive board, agreed
that improvement in post trade services and regulation would
stimulate investor interest in Russian securities.
The NSD's partnership with Euroclear builds on their offering
for Russian government bonds introduced last year.
The new link enables all Euroclear's clients that invest in
corporate and municipal debt to settle those trades and deposit
their positions through Euroclear's account with the NSD. The
service goes live on January 30. Municipal bonds and corporate
bonds issued in 2012 and later are eligible.
The Russian market has been making clear strategies to become
more accessible to foreign investors. Last year the
Russian Central Bank was appointed the country's mega-regulator
for its financial markets.