Infrastructure Development Initiative in the Russian Securities Market

08 August 2007
Print version

NDC   FFMS   DCC

Joint press release

A meeting on the perspectives of the Russian securities market infrastructure development was held today, with FFMS Head V. D. Milovidov, MICEX Chief A. I. Potemkin, Chairman of OJSC RTS R. Y. Goryunov, and representatives of NDC and DCC participating. The meeting followed the DCC extraordinary general meeting and was arranged on the initiative of the Federal Financial Markets Service (FFMS).

The participants unanimously expressed the need to strengthen and capitalize Russian infrastructure organizations – both stock exchanges and securities settlement systems. Transformation of the discussions on the ways of development of market infrastructure into confrontation between securities market participants was acknowledged as unacceptable. It was confirmed that there was no objective ground for conflicts between the market participants, including the shareholders of infrastructure organizations. The meeting participants emphasized the agreement of all parties on constructive cooperation aimed at increasing competitiveness, transparency and reliability of Russian securities market institutions.

The participants achieved a general understanding of the important role played by NDC and DCC in the Russian securities market and the necessity of increasing responsibility of management and shareholders of these organizations for the future of the Russian securities market. Only a high level of awareness of responsibility, not the technological, financial or organizational activities of depositary institutions and stock exchanges, can lead to the consolidation of the Russian securities market infrastructure and the establishment of the central depositary and transfer institute.

The participants came to a clear conclusion on the necessity and validity of DCC’s charter capital increase, it being an important condition raising the competitiveness of the Russian stock infrastructure.

It was unanimously stated that another important condition is increasing the transparency of the activities of all existing infrastructure organizations. NDC’s management and shareholders expressed their opinion on the increase of DCC’s charter capital and achieved understanding of the necessity of taking a qualitative step forward in increasing the transparency of the activities of NDC itself. In particular, the participants welcomed NDC’s intention to go public. This suggestion was sent to FFMS and the necessary work is currently in progress.

It was stated that DCC’s shareholders and management approve and understand the NDC representatives’ proposals aimed at improving the Company’s decision-making mechanisms. The participants mutually agreed that DCC had already made considerable efforts to increase management transparency. DCC expressed its commitment to follow this path, taking into account the advantages provided by the joint-stock type of organization. It was also stated that the correction of decisions taken by the DCC Board of Directors must not decrease the efficiency of company management and cause any threat of manipulation of  shareholders’ rights, and that measures for the prevention of this scenario must be taken. A unanimous conclusion was drawn that management decisions on transparency require awareness of responsibility among those involved in decision making.

FFMS Head V. D. Milovidov wound up by expressing the hope that the intensification of antagonism was over. “In this case,” he stressed, “I assume we are not engaged in a conflict, not in a corporate one, but in a discussion between allies and partners, so we will continue to tackle the vital issues of development of the Russian infrastructure together.”


For further information about NDC: www.ndc.ru, or NDC press service: +7 495 232 0910,

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