OREANDA-NEWS. National Settlement Depository (NSD), Russia’s central securities depository, and Central Depository of Kyrgyz Republic have signed a Memorandum of Understanding, a document aimed at bilateral cooperation.

The signed MoU establishes the terms of interactions between two CSDs in respect of statistics and market news exchange, sharing information related to operating business models and methods of their improvement, as well as other spheres of cooperation considered as helpful by the parties.

Two organizations plan to establish close working relations for accomplishing a number of crucial tasks such as preparation to developing correspondent relations between NSD and Central Depository of Kyrgyz Republic, use of depository technologies, organization of trainings and exchange of experience of two depositories’ employees, and other cooperation issues.

The parties have also concluded a depository agreement. Central Depository of Kyrgyz Republic has opened the nominee account for NSD; this will allow NSD clients to use safekeeping and record keeping services and conduct settlement operations with Kyrgyz issuers’ securities.

Aziza Yuldasheva, President, Central Depository of Kyrgyz Republic, said:

“The Memorandum we have signed with Russia’s CSD is literally a milestone for our stock market, as it will contribute to development of our countries’ securities markets, especially in the sphere of securities safekeeping and record keeping, clearing services and related services.

It is symbolic that the MoU has been signed during the meetings of the members of AECSD which main goals are to build relations between depositories and to harmonize their activities. Today we see how one of these goals is being achieved. We have signed not just the MoU but also a depository agreement. This will be very helpful for us, as it will make our national securities markets more attractive and will allow us to provide wider range of high quality services to our investors. The signing of the Memorandum means that we strive to establish, develop and strengthen mutually beneficial relations and that we are ready to cooperate in the long run.”

Eddie Astanin, Chairman of the Executive Board, NSD, added:

“In 2013, NSD extensively expanded cooperation with central securities depositories in Europe and the CIS countries. The Memorandum that we are signing today let us make an important step toward establishing cooperation and mutually beneficial relations with Central Depository of Kyrgyz Republic and allow us to contribute to further development of our countries’ stock markets.

NSD’s nominee account opened with Central Depository of Kyrgyz Republic will give Russian investors an opportunity to conduct settlements on transactions and keep Kyrgyz issuers’ securities. We work on creation of the efficient cross-border settlement system and do our best to strengthen integration of Russia’s and Kyrgyzstan’s stock markets in the interests of both countries’ investors.”