NDC Approves Its Code of Professional Ethics

03 July 2008
Print version

MOSCOW - The National Depository Center (NDC), Russia's only settlement depository servicing the full range of Russian securities, announced today its approval and adoption of a Code of Professional Ethics.

This is an internal document aimed at the protection of the company's and its clients' rights and interests. NDC employees and managers are now obliged to follow the Code for the achievement of the following goals:

o          Disclosure and prevention of conflicts of interests

o          Prevention from distribution by NDC employees and managers of information which could influence the market value of securities held on NDC accounts and also of confidential information. 

A number of key ethical standards are set by the Code including principles of legitimacy of the company's activities, confidentiality, priority of NDC clients' interests, protection and growth of NDC assets and raising in its capitalization, high professional standards, independence and fairness among NDC employees, efficient internal control, equality and cooperation among employees in the performance of their duties, and prevention of conflicts of interests, etc.

A draft of the Code was recommended for approval by the Committee for Risk Management, NDC at its 19 June meeting. Vladimir Zimin, Chairman of the Committee, Economic Advisor to the Department of Control over Financial Market Operations, Bank of Russia, said: "We regard the approval of a Code of Professional Ethics as an important step in the course of building an efficient system of NDC corporate governance. Moreover the Code is an additional guarantee of personnel loyalty and trustworthiness."

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 and the Bank of Russia bond markets, more than 95% of transactions conducted in the corporate and regional bond markets, and stock exchange share transactions. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, and 95% of sub-federal and municipal bond issues. The international rating agency Thomas Murray has assigned NDC an A+ rating as a central depository. For 1Q 2008 the value of assets in storage was more than RUR4.2 trillion. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numbering agency, the substituting numbering agency for the CIS, authorized to assign the international ISIN and CFI codes. It is also a member of the international accounting infrastructure, providing settlements on the global financial markets using direct accounts at Clearstream Banking S.A. and Euroclear Bank. It also holds accounts at the Central Depository of the Republic of Kazakhstan and the NDC of the Republic of Azerbaijan.

Among NDC’s founders are MICEX and Bank of Russia (the founders’ shares in the property of NDC are 46.7% and 39.3% respectively, and in the votes 50.2% and 42.3% respectively). Members include GPB OJSC (Gazprombank), Evrofinans Mosnarbank, Rosbank, VTB Bank (Vneshtorgbank), Bank of Moscow, Rossiysky Credit Bank, Vneshekonombank, ING Bank Eurasia, JP Morgan Bank International LLC, UniCredit, Deutsche Bank, and Sberbank. The Partnership also has a stake in Depository Clearing Company CJSC (36.96 %) and in Settlement Depository Company CJSC (28.54%).

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


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