OREANDA-NEWS. December 7, 2011. DCC and CB J.P. Morgan Bank International (LLC) have entered into an interdepository agreement, which stipulates the launch of the speedy settlement scheme between DCC and CB J.P. Morgan Bank International (LLC) with effect from December 12, 2011. This type of interaction speeds up the transfer of securities between the clients of DCC and CB J.P. Morgan Bank International (LLC), and reduces Participants' expenses.

DCC uses its interdepository account No. №L110032LB1 with CB J.P. Morgan Bank International (LLC) for operational safekeeping of securities eligible for settlement via the ESSS. This account will be used for transactions relating to deposition of securities to DCC's account from the counterparty account at CB J.P. Morgan Bank International (LLC) and withdrawal of securities from securities accounts of DCC Participants to accounts of CB J.P. Morgan Bank International (LLC) clients.

Please note the following details of the interdepository link between DCC and CB J.P. Morgan Bank International (LLC):
To have instructions for deposition or withdrawal of securities executed, a client of CB J.P. Morgan Bank International (LLC) (i.e. counterparty of a DCC Participant) should submit a counterparty instruction to CB J.P. Morgan Bank International (LLC);
Participants using DCC Client software shall upgrade it to Version 3.0.26. (see guidelines attached, in Russian);
To select execution of the instruction via ESSS, indicate the following attribute in the instruction to DCC:
For paper-form instructions in D15 format (see appendices to the Terms and Conditions of Depostiry Activity of DCC) select “Interdepository Deposition” or “Interdepository Withdrawal” in the “Type of Instruction” field;
If the instruction is submitted via DCC's remote access system, in field :87D: indicate the code of the settlement institution, i.e. CHAS
If the instruction is submitted to DCC via S.W.I.F.T., in field :95P::PSET indicate the BIC-code of the settlement institution, i.e. CHASRUMX
If the aforementioned attribute is not indicated, the instruction shall be executed in the usual mode by transferring the securities between personal accounts in the share register;
If securities are transferred via the enhanced speedy settlement scheme, "transaction date" and "settlement date" fields are mandatory and are matched with respective fields in counterparty instructions.

We expect to admit over 200 securities issues to settlement via this scheme by December 12, 2011. The complete list of securities eligible for settlement via the scheme is available at DCC web-site.

Please see the Specification enclosed hereto for the details of depository transactions executed via the interdepository link between DCC and CB J.P. Morgan Bank International (LLC).

Deadlines for execution of instructions
Deposition of securities to an account with DCC from a counterparty account with CB J.P. Morgan Bank International (LLC) – Participants' instructions submitted to DCC before 3 p.m. Moscow time shall be executed on the same-day basis. DCC does not guarantee execution of instructions submitted to DCC after 3 p.m. Moscow time on the same-day basis;
Withdrawal of securities from an account with DCC to a counterparty account with CB J.P. Morgan Bank International (LLC) – Participants' instructions submitted to DCC before 3 p.m. Moscow time shall be executed on the same-day basis. Please also note that in case of securities withdrawal via the ESSS, DCC in its turn submits an instruction to CB J.P. Morgan Bank International (LLC) only in case there is a sufficient amount of securities of the indicated issuer on DCC's interdepository account with CB J.P. Morgan Bank International (LLC). In case there are not enough securities on DCC's interdepository account, DCC shall transfer securities thereto from its personal account to the personal account of CB J.P. Morgan Bank International (LLC) in the respective share register. The interdepository settlement procedure involves asset realignment aimed at provision for a sufficient amount of securities on the interdepository account opened by DCC in CB J.P. Morgan Bank International (LLC). However, DCC does not guarantee sufficiency of assets on its interdepository account. In case of insufficiency of assets the instruction for securities withdrawal is not executed on real time basis, but requires transfer of the securities via the share register. The number of instructions which are not executed in real time is expected to be insignificant. However, even in such cases the time required for a withdrawal via the ESSS does not exceed the time required for execution of an instruction via the share register.

In case an instruction for delivery or for receipt is submitted to DCC electronically, a report on execution of the instruction shall be forwarded to the Participant immediately upon receipt of a respective report from CB J.P. Morgan Bank International (LLC). The Settled Trades Report is provided to Participants after the end of DCC's operating day.

Participants' Expenses
RUB 1 400 for execution of an instruction for withdrawal of securities via the ESSS (exclusive of VAT);
RUB500 for execution of an instruction for deposition of securities via the ESSS (exclusive of VAT).

Please note that registers of some issuers are kept by registrars located outside Moscow or St. Petersburg, in this case DCC charges a higher fee due to DCC's expenses for the trips to these constituent entities of the RF. For further details on DCC Fee Schedule please see the DCC web-site.

Please address your company's manager at DCC for any inquiries relating to this notification.