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Clearstream extends Russia services
30 January 2014
Move expected to boost corporate bond market
Clearstream has opened up settlement to Russian corporate bonds
via its direct link to the Russian CSD, the National Settlement
Clearstream will work with its international central securities
depository (ICSD) counterpart to ensure an effective linkage -
known as the Bridge - between the two ICSDs. The Bridge enables
customers to easily settle transactions between accounts at the
two ICSDs and will thus help increase liquidity flow in the
Russian market according to Clearstream.
The introduction of settlement for corporate Russian bonds,
coupled with a firm commitment to establish the Bridge between
the ICSDs will help further develop the market infrastructure
needed to offer investors and issuers an enhanced offering in
the Russian capital market.
Illustrating the increased foreign investor appetite in the
Russian market, the share of foreign investment in OFZ
government bonds has gone up by around 25% since the
establishment of new financial market infrastructure in Moscow
according to the Bank of Russia.
As a next step, Clearstream will look to offer settlement for
equities via its direct link to the NSD, due for summer 2014,
in line with expected changes to Russian legislation.
Meanwhile, Clearstream continues to settle equities in Russia
via its indirect link to the NSD through Clearstream's local
agent bank, Deutsche Bank Moscow.
"Entry of international clearing and settlement organisations
to the OFZ market has already provided a positive impact by
decreasing the cost of borrowings for the government," said
Sergey Shvetsov, First Deputy Governor of the Bank of Russia.
"We have to improve accessibility of corporate actions
information, develop new products like collateral management
and serve investors from around the world in line with best
practice," said Eddie Astanin, chairman of the executive board,
NSD. "We believe that today's launch is another big step in
establishing Moscow as one of the global financial centres."