Russia’s NSD about to gain central depository status

Russia’s National Settlement Depository (NSD) has submitted the last set of documents required for obtaining the status of a central securities depository from the Federal Financial Markets Service (FFMS).

This is an important step in the development of the local security market, and a necessary stipulation for allowing Russian bonds to trade through Euroclear and other universal clearing houses.

Euroclear announced it has been approved to service Russia debt on October 4. The securities that it can service include Russian federal loan obligations (OFZs), one the most actively traded classes of Russian government bonds, as well as other Russian government and municipal bonds, corporate bonds and securities issued by foreign entities.

The NSD applied for central depository status in July, when it submitted an initial list of documents for approval. These included documents confirming its compliance with the application requirements, the Regulations on the National Settlement Depository Customer Committee and the company’s Code of Professional Ethics.

This first set of documents was approves by the supervisory board on October 16.

Market practitioners expect NSD to gain central depository status by the end of the year, which will complete the necessary procedures for bond trading through Euroclear, ending months of agitated waiting.

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