By Andrei Skvarsky.
Clearstream, the clearing and settlement arm of German stock exchange Deutsche Boerse, has confirmed that its direct link to Russia’s new central securities depository {{{*}}} , the National Settlement Depository (NSD), is going live on February 28, and that it is cutting its custody fees for Russian OFZ sovereign bonds by up to 52%.
From February 28, Clearstream will offer its customers free of payment (FOP) settlement in OFZ bonds as phase one of its two-phase roll-out plan for Russia.
Phase two, to be launched this spring, will involve the introduction of delivery versus payment (DVP) settlement whereby delivery only comes when payment does, Clearstream, a company based in Luxembourg and Frankfurt and operating in Russia in partnership with Deutsche Bank, said in a statement.
The purpose of the fee cut is to help “to attract investors and dealers to benefit from reforms in Russian securities laws”, Clearstream said. “The latter reforms aim to enhance the protection of investors looking to settle and hold the Federation’s benchmark sovereign bond in the international market.”
“Clearstream and the Deutsche Boerse Group strongly welcome the reforms in Russia and the initiative to establish Moscow as an international financial centre,” said Mark Gem, head of business management at Clearstream.
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