MOSCOW - National Settlement Depository (NSD), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, and PJSC National Depository of Ukraine (NDU) have signed a memorandum of cooperation and an agreement to open and maintain NSD's correspondent account with NDU.
Through the agreement, the parties strive to establish, develop and strengthen mutually beneficial relations, aimed at creating an efficient and reliable system of recordkeeping regarding trans-border settlements on securities.
The depositories place great importance on expanding bilateral cooperation, and the two companies intend to build close business relations with regard to the following principles:
- Exchange of information focusing on clearance, settlement and recordkeeping systems in Russia and Ukraine
- Opening mutual correspondent accounts
- Conducting mutual training sessions and an exchange of experience between the depositories' specialists
- Formation of working groups to implement joint projects
- Examination of Russia's and Ukraine's recordkeeping systems and the development of proposals to facilitate their convergence
- Exchange of statistics
- Providing consulting services to Ukrainian and Russian stock market participants within the scope of the two countries' recordkeeping systems and their interactions
- Coordinating interactions between Russia's national numbering agency and Ukraine's national numbering agency aimed at improving a system to assign codes to securities and other financial instruments in compliance with international standards ISO 6166 and ISO 10962, as well as the implementation and development of systems using other international standards within the framework of the Association of National Numbering Agencies (ANNA)
- Mutual consultation regarding information storage and processing systems
- Cooperation regarding participation in international projects aimed at integrating NSD and NDU into the international settlement system
- Other matters requiring the depositories' mutual cooperation
Eddie Astanin, Chairman of the Executive Board, NSD, said: "Development of partner relations and technological interactions of NSD with National Depository of Ukraine are oriented toward joint development of the post-trading infrastructure of our financial markets. This step reflects our vision and represents our reaction to global changes that encourage new strategic alliances and the consolidation of infrastructure in financial markets."
Sergei Rumpa, Chairman of the Executive Board, NDU, pointed out: "The signing of the memorandum is an important strategic step toward the convergence of Russian and Ukrainian recordkeeping systems; it will give additional opportunities to both countries' market participants. Moreover, our mutually beneficial cooperation, combined with the integration of our efforts focused on participation in international programs and our information exchange and joint consulting will guarantee the successful integration of NSD and NDU into the international securities recordkeeping system. It is worth mentioning that both depositories act as national numbering agencies, which allows us to interact in assigning codes to securities in accordance with international standards. NDU realizes the importance of cooperation with NSD, an organization with vast experience in the depository services sector. This is a crucial issue for NDU that will have a positive effect on our national depository system. We plan to cooperate in all aspects of depository activities and this cooperation will surely have positive results, which in turn can be a basis for further expansion of interactions."
National Settlement Depository (NSD) is the largest settlement depository in Russia, a part of the MICEX-RTS Group, servicing on-exchange and OTC transactions with all types of debt and equity securities of Russian issuers and providing settlement services to participants in financial markets of the Russian Federation.
NSD 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 securities of foreign issuers.
In accordance with agreements concluded between NSD and the Bank of Russia, NSD acts as a settlement center for the organized securities market.
NSD 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 NSD: http://www.nsd.ru/ , or NSD Public Affairs Division: +7 495 232 0910,
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National Depository of Ukraine (NDU) is a central link of Ukraine’s depository system. NDU was formed in compliance with the Law of Ukraine "On national depository system and peculiarities of electronic circulation of securities in Ukraine" to facilitate the functioning of the unified depository system.
NDU is a national agency for codifying all types of financial instruments issued in Ukraine. Since 2000, NDU has been a member of the Association of National Numbering Agencies (ANNA).
In compliance with the legislation, NDU is an exclusive provider of the following services:
- Standardization of depository services and document interchange related to securities transactions
- Numbering (assignment of codes) of securities issued in Ukraine in compliance with international rules
- Building relations and continuous interactions with depository organizations in other countries, concluding agreements related to direct membership or correspondent relationship for servicing international transactions with securities of the participants of the national depository system
NDU has established correspondent relationships with Clearstream, an international depository; with OeKB, Austria's central depository; and with a number of Russian depositories including Rosbank, INFINITUM, Central Moscow Depository, Depository and Corporate Technologies, and Depository Clearing Company.
NDU has concluded agreements on clearance and securities settlement services with all exchanges represented in Ukraine.
For further information about NDU: http://www.csd.ua/