NDC and MICEX Settlement House Begin Providing New Settlement Service

23 June 2009
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The National Depository Center (NDC), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, announced today that starting 15 June 2009 NDC and MICEX Settlement House (MICEX SH) began offering a new service to settle transactions on a Delivery Versus Payment (DVP) basis using NDC and MICEX SH accounts with Euroclear Bank, the international central securities depository. As part of the new settlement arrangement, NDC is responsible for the securities record and MICEX SН controls the flow of funds. At this stage, settlements are conducted in a range of foreign currencies involving transactions with Russian Federation Eurobonds, ADRs and GDRs.

Nikolay Egorov, Director, NDC, commenting on the launch, said: “Transaction settlement on a DVP basis in foreign currencies is quite a popular service among our depositors, including major banks and brokers. We regard the launch of this new service as a strategically important step in the development of NDC's depository settlement business. The new service is a core service provided by leading, world-class depositories, which is consistent with our other initiatives in bringing our business model into conformity with international practice.”

Sergei Sukhinin, Director, MICEX SH, added:“The opening of a correspondent account by MICEX Settlement House with Euroclear Bank, aimed at providing settlement-related services for OTC securities transactions on a DVP basis and processing coupon payments and other income and custody-related transactions for NDC’s depositors in Russian rubles and in foreign currencies, is the next stage in expanding the range of services provided by the MICEX Group. The agreement with Euroclear Bank, the biggest international settlement and depository system, will enable MICEX Settlement House, in alliance with NDC, to provide our clients and partners with additional opportunities in business development.”

Philippe Laurensy, Director, Euroclear SA/NV, stated: “The progress being made in Russia to improve its post-trade processing infrastructure is evidence of the growing sophistication and globalization of the market. We are delighted that NDC and MICEX SH have selected Euroclear Bank as the ICSD through which to effect this latest move in offering true DvP settlement to its mutual clients. Our relationship with the Russian market, and NDC in particular, continues to strengthen since signing our Memorandum of Understanding in April 2007.”    

The list of securities on NDC's accounts with Euroclear Bank and admitted to operations according to the new scheme is available on NDC's web sites: http://www.ndc.ru/ru/db/lists/eurobonds/ , http://www.ndc.ru/ru/db/lists/depo_receipts/adr_gdr/

About NDC:

Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in Russia, servicing the full range of debt and equity securities of Russian issuers. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, sub-federal and municipal bond issues. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, more than 99% of transactions conducted in the corporate and regional bond markets, and more than 99% of stock exchange transactions with equities and OTC trades. The international rating agency Thomas Murray has assigned NDC an АА- rating as a central depository. NDC is Russia's national numbering agency, and the substituting numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.

Among NDC’s founders are MICEX and Bank of Russia (the founders’ shares in the property of NDC are 46.67% and 39.35% respectively, and in the votes 50.16% and 42.3% respectively). Members include GPB OJSC (Gazprombank), Evrofinans Mosnarbank, «ROSBANK» (OJSC JSCB), JSC VTB Bank (Vneshtorgbank), Bank of Moscow, JSC «ROSSIYSKIY KREDIT BANK, Vnesheconombank, ING BANK (EURASIA) ZAO, JP Morgan Bank International LLC, ZAO UniCredit Bank, Deutsche Bank, and Sberbank. The Partnership also has stakes in Depository Clearing Company CJSC (37.29%), in Settlement Depository Company CJSC (28.54%) and in Bank "National Clearing Centre" CJSC (0.27%).

For further information about NDC: www.ndc.ru, or NDC Public Affairs Division: +7 495 232 0910, .

About MICEX Settlement House:

The MICEX Settlement House (MICEX SH) is Russia’s largest non-banking credit institution specializing in providing settlement services to participants in financial markets of the Russian Federation. MICEX SH provides settlement services that meet present-day requirements for efficiency, continuity and operational reliability. In accordance with agreements concluded between MICEX SH and the Bank of Russia, MICEX SH acts as a settlement center for the organized securities market.

The register of MICEX SH’s shareholders includes, among others, such companies as MICEX (88.709 %), UniCreditBank (3.6 %) and Sberbank (2.267 %).

Services provided by the MICEX Settlement House are in high demand. Its clients number more than 820 major banks and financial companies from various regions of Russia, such as Sberbank, Gazprombank, Vnesheconombank, JSC VTB Bank, financial companies Troika Dialog and BrokerCreditService Ltd., subsidiaries of major foreign financial institutions, including J.P. Morgan Chase Bank, Citibank, Deutsche Bank, UniCredit Bank, Raiffeisenbank, Russian and foreign exchanges, the largest international brokerage company Cargill International and other organizations.

For further information about MICEX SH: http://www.micex.ru/group/settlementhouse/

About Euroclear Bank:

Euroclear Bank is the world’s largest international central securities depository, serving clients in more than 90 countries. User owned and user governed, Euroclear SA/NV owns Euroclear Bank, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. Euroclear also owns EMXCo, the UK’s leading provider of investment-fund order routing and Xtrakter, owner of the TRAX trade matching system. The total value of securities transactions settled by the Euroclear group in 2008 was in excess of EUR 560 trillion, representing 157 million domestic and cross-border transactions, while assets held for clients were valued at more than EUR 18 trillion. Euroclear Bank is rated AA+ by Standard & Poor's and Fitch Ratings.

For further information about Euroclear, please see http://www.euroclear.com .

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