OREANDA-NEWS. June 23, 2009. The National Depository Center (NDC), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, announced today that starting 15 June 2009 NDC and MICEX Settlement House (MICEX SH) began offering a new service to settle transactions on a Delivery Versus Payment (DVP) basis using NDC and MICEX SH accounts with Euroclear Bank, the international central securities depository. As part of the new settlement arrangement, NDC is responsible for the securities record and MICEX SН controls the flow of funds. At this stage, settlements are conducted in a range of foreign currencies involving transactions with Russian Federation Eurobonds, ADRs and GDRs.

Nikolay Egorov, Director, NDC, commenting on the launch, said: “Transaction settlement on a DVP basis in foreign currencies is quite a popular service among our depositors, including major banks and brokers. We regard the launch of this new service as a strategically important step in the development of NDC's depository settlement business. The new service is a core service provided by leading, world-class depositories, which is consistent with our other initiatives in bringing our business model into conformity with international practice.”

Sergei Sukhinin, Director, MICEX SH, added:“The opening of a correspondent account by MICEX Settlement House with Euroclear Bank, aimed at providing settlement-related services for OTC securities transactions on a DVP basis and processing coupon payments and other income and custody-related transactions for NDC’s depositors in Russian rubles and in foreign currencies, is the next stage in expanding the range of services provided by the MICEX Group. The agreement with Euroclear Bank, the biggest international settlement and depository system, will enable MICEX Settlement House, in alliance with NDC, to provide our clients and partners with additional opportunities in business development.”

Philippe Laurensy, Director, Euroclear SA/NV, stated: “The progress being made in Russia to improve its post-trade processing infrastructure is evidence of the growing sophistication and globalization of the market. We are delighted that NDC and MICEX SH have selected Euroclear Bank as the ICSD through which to effect this latest move in offering true DvP settlement to its mutual clients. Our relationship with the Russian market, and NDC in particular, continues to strengthen since signing our Memorandum of Understanding in April 2007.”   

The list of securities on NDC's accounts with Euroclear Bank and admitted to operations according to the new scheme is available on NDC's web sites: http://www.ndc.ru/ru/db/lists/eurobonds/ , http://www.ndc.ru/ru/db/lists/depo_receipts/adr_gdr/