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Russia to Give Euroclear Direct Access to Sovereign and Corporate Debt

15.08.2012 08:01 / Interfax

The Federal Financial Markets Service (FFMS) has submitted for registration at the Ministry of Justice a regulation allowing foreign central depositaries such as Euroclear and Clearstream access to corporate debt market as well as to sovereign bonds, said a service representative.

In late June, the FFMS website published a draft regulation allowing Euroclear and Clearstream to open nominee accounts at the Russian Central Depositary for sovereign bonds only until 1 July 2014.

In mid-July, the possibility of allowing Euroclear and Clearstream access to the corporate bonds market as well as sovereign debt was discussed by the Ministries. The proposal was brought to the table by the Ministry of Finance and supported by the Central Bank of Russia. Sources say the idea was supported by a majority vote.

A FFMS representative said on Tuesday that the draft regulation had been submitted to the Ministry of Justice for registration in early August.

In reply to whether the document granted foreign central depositaries access to corporate debt market as well as to sovereign bonds, the FFMS officer said: “Yes, corporate debt market was included”.

Direct access by Euroclear and Clearstream through nominee accounts at the Russian Central Depositary has been actively debated for months. Some market participants point out that the weak points of Russian infrastructure could lead to a liquidity drain from Russia.

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