The Central Securities Depository of Poland (KDPW) and the National Settlement Depository of Russia (NSD) have taken their first step towards establishing an operational link.
The central securities depositories (CSDs) signed a memorandum of understanding today that sets out the terms of cooperation, including information exchange, fostering prosperity in their respective markets and promoting cross-border investment.
The CSDs hope to establish an operational link in the future that could enable the dual listing of companies on the Warsaw Stock Exchange and the Moscow Exchange.
“I do hope that the signed MoU will make it possible in the future to create a joint operational link,” said Iwona Sroka, president and CEO of KDPW.
Eddie Astanin, chairman of the NSD executive board, added: “As a central securities depository, NSD is one of the conductors of foreign investors’ capital flow to the domestic market and Russian investments to external markets.”
“This model is at the core of the new relationship between Russia’s and Poland’s central securities depositories, which is being strengthened by the MoU we are signing.”
KDPW has 19 operational links with foreign CSDs, including 10 direct links between it and a foreign CSD and nine indirect links via one of two international depositories—Clearstream Banking Luxembourg or Euroclear Bank—or in the case of Bulgaria, a custodian bank.
NSD has bilateral links with Euroclear Bank and Clearstream Banking, as well as with CSDs in Kazakhstan, Azerbaijan, Ukraine and Armenia.
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