NDC Committee for Risk Management, comprised of the leading market players, has approved proposals of the NDC Managers to make changes to the criteria list on securities admission for transfers via NDC-DCC "Bridge". The technology of this link is based on inter-depository interaction of the two settlement depositories: The National Depository Center and the Depository Clearing Company. The Bridge allows both NDC and DCC depositors to execute securities transfer transactions from one depository to the other, within one operational day, without any re-registration with the registrars while performing each specific instruction to deliver/enter the securities.
The changes will become effective from 25 April 2005. In accordance with the revised document, securities may be entered onto the List of Admitted For Transfer via the NDC-DCC "Bridge", including the cases of admittance of securities for trading without listing procedures, provided the security’s monthly volume in trades executed within the last 3 months, at MICEX or RTS stock exchanges, equals to at least RUB750,000.
Other criteria, in addition to submission of NDC depositors’ requests to include a security onto the NDC-DCC Bridge List, are as follows:
- appreciable market value and its obligatory inclusion into MICEX and RTS quotation lists;
- servicing of such security by one of Moscow registrars or a registrar, with which NDC has concluded the agreement on electronic document interchange (EDI).
Such liberalization of admission criteria for securities transfers via NDC-DCC "Bridge" will make it possible for the market participants to reduce their operational expenses and to effectively execute transfers from one depository to another in most liquid unlisted shares, simultaneously traded on MICEX and RTS floors.