NDC Conducts Successful Test of Direct REPO Transaction Technology on the OTC Market

20 February 2008
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MOSCOW (RNWire) - The National Depository Center (NDC), Russia's only settlement depository servicing the full range of Russian securities, jointly with MICEX CJSC and MICEX Settlement Chamber CJSC has introduced a technology supporting direct REPO settlements on debt securities on Delivery-Versus-Payment (DVP) terms. The first settlement using the technology, involving a RUR20 million transaction, was successfully held in two stages on 15 and 18 February.

It is worth noting that such settlements can be undertaken by participants in settlements and the Bank of Russia with regard to securities issued abroad by entities which are non-residents of the Russian Federation. These securities are included into the Bank of Russia's Lombard List but are not permitted for public offering in the Russian Federation.

Only companies holding a certificate as state securities dealer can participate in settlements with the Bank of Russia on direct REPO transactions in the OTC market. In order to conduct such transactions using DVP technology through NDC and the MICEX Settlement Chamber CJSC, the participant must:

  • Have (or open) a depository account at NDC;
  • Conclude an agreement with the Bank of Russia on direct REPO operations in the OTC market of the Russian Federation;
  • Have (or conclude) an agreement on electronic data interchange (EDI) with NDC;
  •  Join the procedure of electronic data transit through NDC's EDI system;
  • Have (or open) a basic account at the MICEX Settlement Chamber;
  • Conclude an agreement with the MICEX Settlement Chamber on the handling of payments on operations with NDC participation.

Additional information on the procedure for concluding agreements with the Bank of Russia on direct REPO operations on the OTC market of the Russian Federation and on execution of direct REPO transactions on the OTC market is published on NDC's web site: www.ndc.ru.

Currently, NDC services the securities of foreign issuers which are held on deposit on NDC's account with Clearstream Banking and which are included in the Bank of Russia's Lombard List. To date the list includes 24 corporate Eurobond issues of international companies.

A summary table of the schedule of depository operations' implementation and other additional information are published on NDC's web site: www.ndc.ru.

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 2007 the value of assets in storage was more than RUR4.3 trillion. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numerating agency, the substituting numerating 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 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 of Russia. The Partnership also has a stake in Depository Clearing Company CJSC (36.96 %) and in Settlement Depository Company CJSC (29%).

About MICEX Settlement Chamber:

MICEX Settlement Chamber CJSC was founded in 1996 by Russia’s leading commercial banks, MICEX and regional currency and stock exchanges. This is a non-banking credit institution specializing in the provision of settlement banking services to participants in the financial market. The company employs the latest banking and information technologies fully integrated with the exchange trading system. MICEX Settlement Chamber CJSC is one of Russia's 30 largest credit institutions by assets. It provides settlement services to all exchanging markets of the MICEX Group. The total value of traders’ daily payments implemented through MICEX Settlement Chamber’s correspondent account during settlements on deals made at MICEX exceeds RUR200 billion. MICEX Settlement Chamber has opened accounts for 400 Russian banks (approximately 30% of all domestic banks). Account balance at MICEX Settlement Chamber amounts to more than a third of funds of all Moscow region credit institutions with Bank of Russia accounts. MICEX Settlement Chamber is a settlement organization authorized by the Bank of Russia for depository transactions made by the Bank of Russia and credit institutions and for Bank of Russia’s lombard crediting operations held by means of the MICEX electronic trading system.

For further information about MICEX Settlement Chamber: www.micex.ru/rpmmvb.

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

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