National Settlement Depository (NSD), Russia’s central securities depository, and Central Depository of Kyrgyz Republic have signed a Memorandum of Understanding, a document aimed at bilateral cooperation.
The signed MoU establishes the terms of interactions between two CSDs in respect of statistics and market news exchange, sharing information related to operating business models and methods of their improvement, as well as other spheres of cooperation considered as helpful by the parties.
Two organizations plan to establish close working relations for accomplishing a number of crucial tasks such as preparation to developing correspondent relations between NSD and Central Depository of Kyrgyz Republic, use of depository technologies, organization of trainings and exchange of experience of two depositories’ employees, and other cooperation issues.
The parties have also concluded a depository agreement. Central Depository of Kyrgyz Republic has opened the nominee account for NSD; this will allow NSD clients to use safekeeping and record keeping services and conduct settlement operations with Kyrgyz issuers’ securities.
Aziza Yuldasheva, President, Central Depository of Kyrgyz Republic, said:
“The Memorandum we have signed with Russia’s CSD is literally a milestone for our stock market, as it will contribute to development of our countries’ securities markets, especially in the sphere of securities safekeeping and record keeping, clearing services and related services.
It is symbolic that the MoU has been signed during the meetings of the members of AECSD which main goals are to build relations between depositories and to harmonize their activities. Today we see how one of these goals is being achieved. We have signed not just the MoU but also a depository agreement. This will be very helpful for us, as it will make our national securities markets more attractive and will allow us to provide wider range of high quality services to our investors. The signing of the Memorandum means that we strive to establish, develop and strengthen mutually beneficial relations and that we are ready to cooperate in the long run.”
Eddie Astanin, Chairman of the Executive Board, NSD, added:
“In 2013, NSD extensively expanded cooperation with central securities depositories in Europe and the CIS countries. The Memorandum that we are signing today let us make an important step toward establishing cooperation and mutually beneficial relations with Central Depository of Kyrgyz Republic and allow us to contribute to further development of our countries’ stock markets.
NSD’s nominee account opened with Central Depository of Kyrgyz Republic will give Russian investors an opportunity to conduct settlements on transactions and keep Kyrgyz issuers’ securities. We work on creation of the efficient cross-border settlement system and do our best to strengthen integration of Russia’s and Kyrgyzstan’s stock markets in the interests of both countries’ investors.”
About NSD
National Settlement Depository (NSD) is the central securities depository of the Russian Federation, a part of the Moscow Exchange Group. The company was founded on 27 June 1996.
NSD is Russia's national numbering agency and the substitute numbering agency for the CIS, authorized to assign the international ISIN and CFI codes. The international rating agency Thomas Murray has assigned NSD an AA- rating as a central securities depository. Total value of assets on deposit with NSD amounted to RUB18.7 trillion as of 30 August 2013.
NSD has links with CSDs/ICSDs in seven countries including five bilateral links with – Euroclear Bank S.A./N.V., Clearstream Banking S.A., KACD (Republic of Kazakhstan), RCSD (Republic of Belarus), CJSC National Depository Center (Republic of Azerbaijan), and two links opened by NSD with NDU (Ukraine) and Central Depository of Armenia OJSC.
The status of central securities depository was assigned to NSD by the Russian Federal Financial Markets Service’s order on 6 November 2012.
NSD holds professional securities market participant license #177-12042-000100 for depository operations issued by the Russian Federal Financial Markets Service on 19 February 2009, license #3294 for bank operations issued by the Central Bank of the Russian Federation on 26 July 2012 and license #077-00004-000010 for the clearing activities issued by the Russian Federal Financial Markets Service on 20 December 2012.
Registered office: 12, Spartakovskaya St., Moscow 105066, Russia
For additional information about NSD please visit www.nsd.ru or connect NSD Public Affairs Division.
NSD Public Affairs Division: +7 495 232 0910
About Central Depository of Kyrgyz Republic
CJSC Central Depository of Kyrgyz Republic provides to its clients (individuals and legal entities) the following services: securities (securities certificates) safekeeping, record keeping, transfer of rights for securities owned by the clients on the basis of proprietary right or other right to thing or other right of ownership. The services are provided by means of opening a depository account with the company and conducting operations on the basis of the client’s or the client’s authorized representative’s instructions.
Central Depository of Kyrgyz Republic was founded in 1997; it holds professional securities market participant license #127 for depository operations with securities issued by the Presidential National Securities Market Commission on 20 April 1998.
Among first clients of Central Depository of Kyrgyz Republic were foreign investors; they opened first depository accounts and transferred their securities issued by the Kyrgyz issuers. In 1998, many broker companies operating in the Kyrgyz Stock Exchange joined Central Depository of Kyrgyz Republic as clients. Now among the Central Depository’s clients are leading broker companies operating in the Kyrgyz Stock Exchange, commercial banks, investment funds and major foreign investors.
Today Central Depository of Kyrgyz Republic is a co-founder and full-fledged member of the Association of Eurasian Central Securities Depositories (AECSD).
The Central Depository’s operations are based on the self-sufficiency. In accordance with the Decree by the Government of the Kyrgyz Republic #399 “On acquisition of additional share issue of Close Joint Stock Company Kyrgyz Stock Exchange and Close Joint Stock Company Central Depository of Kyrgyz Republic” dated 18 July 2011, the government considers an issue of providing state support by means of acquiring a share in Central Depository of Kyrgyz Republic, as this organization is one of the essential structures in securities market and plays an important role in formation of an attractive environment for foreign investment and further market reforms in the country.
Moreover, the Decree #399 allowed to solve one of the key issues related to the role of the state in Central Depository of Kyrgyz Republic. According to the Decree, the State Property Fund will be responsible for acquisition of 51% stake in the depository by the state.?
Central Depository of Kyrgyz Republic maintains accounts of individuals and legal entities, both residents and non-residents. Any securities serviced by Central Depository of Kyrgyz Republic can be kept in non-resident depository accounts.
Central Depository of Kyrgyz Republic provides to its clients a broad range of depository services on all types of securities traded in Kyrgyz and international markets.
A foreign depository-correspondent can open a nominee account with Central Depository of Kyrgyz Republic. In 2000, Central Depository of Kyrgyz Republic opened a nominee account for Central Securities Depository of the Republic of Kazakhstan.
For additional information about Central Depository of Kyrgyz Republic please visit www.cds.kg.