MOSCOW - The National Depository Center (NDC), Russia's only settlement depository servicing the full range of Russian securities, announced today that it has launched electronic document exchange with Central Moscow Depository OJSC (CMD) as a part of information sharing. The exchange has been initiated following completion of operational testing of the electronic document exchange system.
Electronic document exchange will allow the companies to move to a higher level of quality, efficiency and reliability in servicing client needs and will protect their legal rights and interests in the stock market.
Nikolai Egorov, Director, NDC, said: “We regard the switch to electronic document exchange with CMD as one more step towards increasing market transparency, acceleration of the operations and settlements process and other corporate actions. We continue to work on unification and coordination of standards together with a comprehensive reduction of any risks associated with the electronic document exchange system.”
Natalia Agafonova, Chairman of the Board, CMD, stated: “Organization of electronic document exchange with NDC will significantly simplify the procedure of information exchange between the registrar and depository and will make it more efficient. This will allow the registrar to increase the quality of its services rendered to registered companies interacting with NDC, including NDC clients, and to offer them same-day service.”
The new interaction regime covers CMD’s records on operations involving NDC personal accounts, information on the status of NDC personal accounts, and also interaction between the two companies in electronic form. Paper copies of electronic documents will be submitted only in cases required under current legislation of the Russian Federation on terms provided by appropriate agreements concluded by the parties.
About CMD:
Central Moscow Depository OJSC (CMD) is Russia’s largest registrar. The company is rated first in Russia’s Registrars Rating issued by the Professional Association of Registrars, Transfer Agents and Depositories (PARTAD). CMD serves more than 1,270 issuers. Among them are Russia’s leading corporations. CMD’s affiliate and transfer agents’ network operates in 69 Russian regions.
About NDC:
Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in Russia, servicing the full range of equity securities of Russian issuers. It services 100% of transactions conducted in the federal bond market of the Bank of Russia, 95% conducted in the corporate and regional bond markets, and 90% of stock exchange share transactions. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, and 95% sub-federal and municipal bond issues. The international rating agency Thomas Murray has assigned NDC an A+ rating as a central depository. In 2006 the value of assets in storage was RUR 3.3 billion, turnover was RUR 30.7 billion, and the total number of operations 1.9 million. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numerating agency, authorized to assign the international ISIN and CFI indexes. It is also a member of the international accounting infrastructure, providing settlements on the global financial markets using a direct account at Clearstream Banking S.A.
Among NDC’s founders are Bank of Russia and MICEX CJSC. Members include Bank of Russia, MICEX CJSC, OJSC Bank of Moscow, Sberbank, International Moscow Bank, JP Morgan Bank International LLC, Vneshtorgbank OJSC, Bank Rossiysky Credit OJSC, Evrofinans Mosnarbank OJSC, Rosbank, Gazprombank CJSC, ING Bank Eurasia CJSC and Deutsche Bank LLC. Recently Vneshekonombank was approved as a new member. The Partnership also has a stake in CJSC Depositary Clearing Company (36.96 %) and in CJSC Settlement Depository Company (29%).