By Andrei Skvarsky.
The Euroclear financial services company has plugged Russia’s capital markets into its pan-European settlement and clearing system, according to Business New Europe (BNE).
The Brussels-based system is now open to OFZs, one of the most actively traded classes of Russian government bonds, and to other Russian government and municipal bonds, corporate bonds and securities issued by foreign entities.
This “groundbreaking” development means Russia’s capital markets are now integrated into the markets in London and New York, BNE says.
It also takes the Kremlin’s ambition to turn Moscow into an international financial centre – a plan that has evoked little enthusiasm in the global investor community – “a major step forward”, BNE point out.
The news also means the amount of foreign capital in the Russian sovereign bonds market (currently about 5% of the total), could double or treble, according to VTB Capital.
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