The services will be available via Euroclear Bank’s account with Russia’s central securities depository, National Settlement Depository (NSD), enabling all major international firms trading OFZs to settle trades and deposit their OFZ positions with Euroclear Bank.
The services will begin with OTC-traded transactions, followed by stock exchange-traded transactions in March. The Euroclear Bank/NSD link will also enable clients to settle cross border transactions easily.
Frederic Hannequart, chairman of Euroclear Bank, said: “The 7 February milestone will mark a new era in the ability of Russia to fund its growth and development through the international capital markets.”
“Industry experts are predicting new foreign capital inflows to Russia in the region of $20 billion (RUB 615 billion). Euroclear Bank is proud to become part of the new Russian financial centre by making OFZs eligible for Euroclear services.”
Eddie Astanin, CEO of NSD, said: “We have worked with colleagues at the Bank of Russia, Russia’s Federal Financial Markets Service and the Russian Ministry of Finance to make the necessary legislative changes that will greatly enhance the appeal of Russian Federal bonds.”
“Together with Euroclear Bank, NSD is offering the government of Russia a broader, cheaper and more efficient way to fund the country’s growth through the bond markets. A tremendous amount of work has been done to accelerate the process of fulfilling the necessary requirements for an effective cross-border service for OFZs.”