MOSCOW – The National Depository Center (NDC), Russia’s only settlement depository servicing the full range of Russian securities, and ING Wholesale Banking, Russia’s biggest custodian rendering services to foreign investors, announced today the signing of an inter-depository agreement and the launch of a jointly-developed service, called the Speedy Settlement Scheme (SSS), designed to cut the time needed for the delivery of shares and to optimize settlements on deals between NDC and ING Wholesale Banking clients. Under the agreement, signed Oct. 26, NDC and ING Wholesale Banking have each opened interdepository accounts with one another.
Nikolai Egorov, Director, NDC, said: "We are happy to announce the launch of a new joint service rendered by NDC and ING Wholesale Banking. An efficient system of settlements between Russian and foreign investors is becoming vitally important because of the growing interest among foreign investors in the Russian stock market. Now deals between NDC and ING Wholesale Banking clients will be concluded by means of interdepository operation. This will decrease the time and the cost of settlements. We think that SSS implementation will lead to concentrating settlements at NDC including settlements on OTC deals."
Natalia Sidorova, Head of Depository Department, Director, ING Wholesale Banking in Russia, added: "The launch of SSS was mainly influenced by the specificity of the Russian market at its current stage, and in particular, fragmentation and cost of its infrastructure, which naturally worried foreign investors and ING Wholesale Banking as their sub-depository. We are happy to cooperate with NDC and we hope that our clients will see the advantages of the new settlement scheme, as well as the operational opportunities and reliability of NDC, Russia’s largest settlement depository."
The Speedy Settlement Scheme can be used by any NDC client (both for the client's own benefit, or for the benefit of their clients), as well as any depositor with ING Wholesale Banking, including those which currently do not use NDC services and store their securities with the nominee ING Wholesale Banking in the register.
The launch of SSS, aimed at speeding up the consignment of securities for trading, should be especially useful given the high volatility of the Russian stock market, as it allows faster settlements and faster links with various markets. SSS can be used for transactions involving the issuance and redemption of depository receipts. Shares transferred using SSS from ING Wholesale Banking to NDC can begin trading on the MICEX exchange on the same day. Shares bought on MICEX can be transferred to ING Wholesale Banking the same day, after the clearing session is over.
About ING Wholesale Banking
ING Wholesale Banking is a business division of ING Group, servicing large corporate clients, and has operated in Russia since 1994 (legal name ING Bank (EURASIA) CJSC).
ING Wholesale Banking in Russia is the largest depository, storing client assets worth over USD119.4 billion (as of Dec. 31, 2006) and servicing the needs of over 450 foreign and Russian clients.
ING Wholesale Banking offers its clients a full range of financial services, including investment and banking services, settlement and cash services, depository services, operations on internal currency and financial markets, general and structural financing.
ING Group is a global company of Dutch origin with 150 years of experience. The company provides a wide range of financial services, including banking, insurance, as well as trust management services in over 50 countries of the world. The Group’s assets total EUR865 billion. ING Group is one of the 20 largest finical institutions of the world as of market capitalization. ING includes a wide range of famous companies, mainly operating under the ING brand.
For further information about ING services in Russia, please visit www.ing.ru
For additional information, please contact Maria Teplukhina, ING Wholesale Banking: +7 495 755 5170,
About NDC
Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in Russia, servicing the full range of equity securities of Russian issuers. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, 95% conducted in the corporate and regional bond markets, and 90% of stock exchange share transactions. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, and 95% of sub-federal and municipal bond issues. The international rating agency Thomas Murray has assigned NDC an A+ rating as a central depository. In 2006 the value of assets in storage was RUR 3.3 billion, turnover was RUR 30.7 billion, and the total number of operations 1.9 million. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numerating agency, the substituting numerating agency for the CIS, authorized to assign the international ISIN and CFI indexes. It is also a member of the international accounting infrastructure, providing settlements on the global financial markets using direct accounts at Clearstream Banking S.A. and Euroclear Bank. It also holds accounts at the Central Depository of the Republic of Kazakhstan and the NDC of the Republic of Azerbaijan.
Among NDC’s founders are MICEX and Bank of Russia (the founders’ shares in the property are 46,7% and 39,3% respectively, and in the votes 50,2% and 42,3% respectively). Members include Gazprombank, Evrofinans Mosnarbank, Rosbank, VTB Bank (Vneshtorgbank), Bank of Moscow, Rossiysky Credit Bank, Vneshekonombank, ING Bank Eurasia, JP Morgan Bank International LLC, International Moscow Bank, Deutsche Bank, and Sberbank of Russia. The Partnership also has a stake in Depositary Clearing Company CJSC (36.96 %) and in Settlement Depository Company CJSC (29%).
For further information about NDC: www.ndc.ru, or NDC Public Affaires Department: +7 495 232 0910, .