MOSCOW - National Settlement Depository (NSD), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, has introduced a new type of section of account ("DR provided by the Bank of Russia in accordance with depository receipts program") which accumulates a client's basic asset in accordance with depository receipts program and has a special tariff plan. A participant shall not pay a commission for custody of securities in this section, but pays an additional fee for conducting of operations with securities. The new section is to be open starting 12 September.
ZAO Citibank is the first company in Russian market which passed its securities submitted for depository receipts program to NSD for custody.
Eddie Astanin, Chairman of the Executive Board, NSD, said: "We assume that a step made by ZAO Citibank means recognition of a high level of reliability of NSD as a depository. This is a very important event, given that ZAO Citibank is a part of Citi Group, one of the leading international financial companies providing custodial services to the investors all over the world, and a member of the Association of Global Custodians."
Alexei Fedotov, Director, Securities and Funds Service Head, Russia & CIS, ZAO Citibank, added: "Citibank, following a strategy of commitment to the Russian market, is consistently developing new products and services provided to investors and securities issuers in Russia. A program of depository receipts is one of these products. The program's infrastructure comprises few important elements; one of them is a selection of a place for local securities' safekeeping. From the early beginning we did not doubt that the local shares for the program should have been kept with NSD but not in the shareholder register as before. We appreciate NSD's flexibility and client oriented approach, and we hope that the steps made by Citi and NSD will contribute to formation of a unified central depository in Russia."
Custody of securities for depository receipts program with NSD in the new section will allow ZAO Citibank:
- To speed up issuance and cancellation of depository receipts significantly
- To combine a low cost of securities custody in the register of shareholders and a high quality of securities servicing by the depository.
National Settlement Depository (NSD) is the largest settlement depository in Russia, a part of the MICEX 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: www.nsd.ru , or NSD Public Affairs Division: +7 495 232 0910,
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ZAO Citibank, a full subsidiary of Citi in Russia, has been operating since 1993 when it became one of the first banks with foreign capital to enter the Russian market. It was the first out of three current subsidiaries of Citibank in CIS. Citibank has since grown its business to be among the country’s largest banks offering a full range of products and services to corporate and consumer customers. At present, the Bank has over 3,000 employees; its distribution network includes retail branches, 400 ATMs and representative offices in largest cities in Russia, Ukraine, and Kazakhstan. Additional information may be found at www.citibank.ru
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://new.citi.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi