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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 municipal bonds.
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 Siluanov.
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.