Russia’s and China’s central securities depositories on Wednesday signed a Memorandum of Understanding (MoU), committing to cooperation in the areas of depository and settlement operations, operational interactions using corresponding accounts (links), corporate actions processing and information services.
Russia was represented by National Settlement Depository (NSD), a part of the Moscow Exchange Group, or Moskovskaya Birzha OAO (MCX:MOEX). For China, the agreement was signed by China Central Depository and Clearing Co., Ltd. (CCDC).
NSD and CCDC agreed to share experience and information. They plan to cooperate in the bilateral format and within the framework of associations (AECSD, ACG and WFC).
Eddie Astanin, who was recently elected as the first Russian representative on SWIFT’s Board of Directors and who chairs the Executive Board of NSD, said:
“Russia’s post-trading infrastructure integration with the global market and with the Chinese market in particular meets our clients’ interests and expectations. China’s huge investment potential in the Russian market and Russian issuers’ and market participants’ interest in financial instruments and assets of the Chinese market create a demand for the CSD services in both countries. Thus, the MoU signed by CCDC and NSD is an important step which benefits our companies.”
The agreement comes on the heels of steps taken by Russian institutions to develop partnerships in Asia. In 2014, NSD together with representatives of the Bank of Russia, Russia’s Ministry of Finance and major market participants held a number of meetings and seminars in two Asian financial centers – Hong Kong and Singapore. Bilateral meetings with representatives of regulators, stock market infrastructure institutions and banking community were held.
China Central Depository & Clearing Co., Ltd. (CCDC), based in Beijing, has been operating in the area of depository services since 1996. At present, in addition to government bonds safekeeping and record keeping, CCDC services OTC corporate bonds.
To view the official announcement, click here.