Depository Centre (NDC), the CSD that services the MICEX trading platform in Russia, is
raising the valuation ceiling on securities transferable across the bridge
between its own systems and the Depository Clearing Corporation (DCC), the CSD
that services the RTS trading platform, from US$15 million to US$50 million.
The increase was announced today by NDC director Nikolai Egorov.
bridge helps link the two principal securities trading systems MICEX and RTS –
by facilitating securities transfers between NDC, which services MICEX-listed
securities, and DCC, which services RTS securities.
increased limit, which took effect this week, was authorized on the recommendation
of the NDC Risk Management Committee. It follows a decision by DCC to raise its
liability insurance cover to US$50 million. The limit on securities
transferable by NDC-DCC bridge was last set on 1 July 2006, and reflected DCC
insurance cover and share capital in effect at that time. The new limit will
allow a reduction in the number of re-registrations and thus will further
decrease NDC and DCC depositors’ costs for servicing of their securities.
NDC is the settlement depository of MICEX Group,
and an authorized depository for most issues of state, corporate, municipal and
sub-federal bonds in Russia.
It services 100% of deals conducted in the state bonds market and, during the
most recent three months, more than 95% of turnover in corporate shares and
bonds, and sub-federal and municipal bonds.
founders include Bank of Russia and MICEX CJSC, and its membership encompasses
Sberbank, International Moscow Bank, JP Morgan Bank International LLC,
Vneshtorgbank OJSC, Bank Rossiysky Credit OJSC, Evrofinans Mosnarbank OJSC,
Rosbank, Gazprombank CJSC, ING Bank Eurasia
CJSC and Deutsche Bank LLC.