MOSCOW - National Settlement Depository (NSD), Russia’s central securities depository, reports that after consultation with custodians and registrars it has approved a road map for mass transfer of assets from registers to the central securities depository (CSD) for safekeeping. The road map is focused on completion of assets’ transfer to CSD’s accounts in 1Q 2013 to support forthcoming placements of securities of privatized Russian companies on Moscow Exchange.
The company plans to complete securities transfers from registers to NSD in March 2013. This will be done in order to provide high quality and comfortable services to NSD’s clients. Another argument for transfers is the fact that foreign investors consider NSD as eligible securities depository in compliance with the SEC Rule 17f-7.
On the basis of an outcome of discussions with custodians, the company plans to simplify transfers using Speedy Settlement Scheme (SSS) through existing “bridges” between NSD and custodians (ING Bank, Citibank, J.P. Morgan International, VTB Bank and Sberbank of Russia. To provide comfortable regime and to minimize operating risks during the period of mass transfers of assets from custodians’ accounts to NSD, the company made decision to allow using “bridges” in the weekends (on 2, 10 and 16 March).
During the period of mass transfer of assets via SSS, the reduced tariffs will be applicable. The three fold decrease of tariffs is planned. The clients will be able to use SSS up to 18 March; after this date SSS will be canceled in compliance with the law.
Moreover, after discussing the issue with custodians and registrars, NSD made decision on a single step requalification and opening nominee holder – central depository (NHCD) accounts in 1Q 2013. On 26 March, NSD will send the appropriate instructions to registrars for completion of these processes by 29 March. Starting 1 April, interactions with registrars regarding NHCD accounts will be conducted by means of counter instructions, using reconciliation procedures on each transaction and indicating names of securities’ owners.
Transfers of assets to NSD may be held from 19 to 29 March through registers in previous regime. However, due to the planned mass requalification of NSD accounts in registers from 26 to 29 March, execution of instructions for transfer sent to registrars after 25 March may be delayed. NSD recommends the clients to send instructions for transfer of assets to registrars in sufficient time in advance.
On 20 March, NSD will publish a final list of securities issuers with NHCD accounts opened in 1Q 2013. The current list is available at the company’s web site (in Russian). According to preliminary estimates, NSD will open approximately 1,200 NHCD accounts in the first three months of 2013.
The road map of the period of transition is available at the company’s web site (in Russian).
National Settlement Depository (NSD) is the central securities depository of the Russian Federation, a part of the Moscow Exchange Group. NSD is Russia's national numbering agency and the substitute numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.
The status of central securities depository was assigned to NSD by the Russian Federal Financial Markets Service’s order on 6 November 2012.
NSD holds professional securities market participant license #177-12042-000100 for depository operations issued by the Russian Federal Financial Markets Service on 19 February 2009, and license #3294 for bank operations issued by the Central Bank of the Russian Federation on 26 July 2012.
Registered office: Building 8, 1/13, Sredny Kislovsky Pereulok, Moscow 125009, Russia.
Supplementary office "Krasnye Vorota": 12, Spartakovskaya St., Moscow 105066, Russia
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