NDC and MICEX SH Launch DVP Settlements through Clearstream Banking S.A.

18 August 2010
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MOSCOW – "The National Depository Center" (Closed Joint Stock Company) (NDC), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, and the Moscow Interbank Currency Exchange Settlement House Non-Bank Credit Organization CJSC (MICEX SH), announce the launch of a new service related to conducting of Delivery Versus Payment (DVP) settlements using NDC's and MICEX SH's accounts opened in Clearstream Banking S.A, an international settlement and clearing organization. The new service is being provided since 16 August, 2010.

NDC is responsible for the securities record, and MICEX SН controls the flow of funds. The settlements are to be conducted in a range of foreign currencies involving transactions with Eurobonds, ADRs and GDRs.

Eddie Astanin, Director General, Chairman of Directorship, NDC, said: "We meet a demand for expansion of a list of financial instruments with which Russian stock market participants conduct operations. In particular a segment of servicing of foreign issuers' securities is being developed rapidly. At the same time the range of services, securities and markets where DVP settlements are available is being expanded in order to reduce the risks connected to the settlements. It is important that integration of Russian and foreign financial infrastructures including interactions of the settlements institutions with leading international service providers is held in line with development of the International Financial Center in Moscow. "

Sergei Sukhinin, Chairman of the Board Executive, MICEX SH, added: "Our experience in provision of the similar service through NDC's and MICEX SH's accounts opened in foreign depository revealed that it was in great demand among market participants. Launch of DVP settlements through Clearstream Banking S.A. represents one more step towards our intention to expand our service range, to improve the quality of the services and to provide flexible approach to our clients' needs."

Alain Meyers, Executive Director, Relationship Management Northern & Eastern Europe, Clearstream said: “This is an important step into the direction of establishing Moscow as an International Financial Centre, providing real-time risk management across all asset classes and establishing true DVP functionalities linking international central securities depositories (ICSDs) and central securities depositories (CSDs) internationally”.

The unified tariff for this type of service is established in accordance with the paragraphs 3.2.7. and 3.2.8. of NDC's Tariffs.

The list of securities serviced by NDC through Clearstream Banking S.A. and admitted to the operations via the new scheme is available at NDC's web site: Russian Federation Foreign Bonds, corporate Eurobonds, ADRs and GDRs.

About NDC

"The National Depository Center" (Closed Joint Stock Company) is the largest settlement depository in Russia, servicing on-exchange and OTC transactions with all types 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, the majority of transactions with equities and also services UIT units and Eurobonds. 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 substitute numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.

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.

MICEX SH is among 30 biggest credit organizations of the Russian Federation on basis of its assets value.

MICEX SH  is a direct participant of the Bank of Russia’s RTGS system.

Over 860 major banks and financial companies from various Russian regions are the clients of MICEX SH, including Sberbank, GPB OJSC, Vnesheconombank, JSC VTB Bank, Troika Dialog, BrokerCreditService Ltd., ALFA-BANK, «ROSBANK» (OJSC JSCB), Bank of Moscow, subsidiary companies of major international financial institutions (JP Morgan Bank International LLC, Citibank CJSC, Deutsche Bank, UniCredit Bank CJSC, Raiffeisenbank CJSC), Russian and foreign exchanges, major international broker Cargill South LLC and other companies represented in Russian commodities market.

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

About Clearstream

Clearstream is an international central securities depositary (ICSD) headquartered in Luxembourg providing the post-trade infrastructure for the Eurobond market and services for securities from almost 50 markets worldwide. Clearstream is an integral part of Deutsche Börse Group, the world’s largest exchange organization when measured by sales revenues. Clearstream’s customers comprise approximately 2,500 financial institutions in over 110 countries. Its services include the issuance, settlement and custody of securities, as well as investment fund services and global securities financing. With over ?10 trillion in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities. As a central securities depository (CSD) based in Frankfurt, Clearstream also provides the post-trade infrastructure for the German securities industry, offering access to a growing number of markets in Europe.

Headquartered in Luxembourg, with operations based in Luxembourg, Frankfurt, Prague and Singapore, Clearstream has also offices in Dubai, Hong Kong, London, New York and Tokyo.

For further information visit our website www.clearstream.com.


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