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Clearstream Follows Euroclear to Russia

13.02.2013 20:12 / Vedomosti

A leading international depositary, Clearstream, will open Central Depositary accounts in Russia in the first half of February, a company representative told Vedomosti. On the heels of the Euroclear link activation a week ago, another global post-trading settlement player enters the Russian market.

Both companies form a global duopoly in Eurobond market service. Last summer they gained access to Russia, following a long debate in the Russian government (this decision was close to being vetoed due to the risk of local securities drain) — sovereign debt and bonds now, shares in a year. Minfin pushed for granting access — this will help bring in foreign money (from investors who can settle only in Eurocler/Clearstream) and consequently lower state loan rates. Today Minfin’s first OFZ auction is scheduled in Euroclear.

Due to the arrival of Euroclear, experts forecast a USD 20bn capital flow to Russia, said Chairman of Euroclear Bank Frederic Hannequart in early February. Now more foreign investors can buy Rouble assets, since they will all be settled more safely in a single system, says Member of the Board at Clearstream Mark Jam. However, Euroclear has only activated its state bonds Central Depositary link so far. Corporate bonds service is postponed until spring due to unclear tax issues. Clearstream has declined to confirm whether the company will launch in both markets simultaneously. Clearstream has long been offering settlement and clearing services for Russian securities through the local subsidiary of Deutsche Bank, he said.

Margarita Papchenkova

Trading infrastructureProject Group №1