Clearstream and Deutsche Bank, partners in the Russian market for 6 years, continue to facilitate market openness in the region. Clearstream, via its Russian agent Deutsche Bank Ltd. Moscow, now has successfully settled its first domestic government bond transaction on an over-the-counter (OTC) basis. This type of transaction represents a significant step forward in the liberalisation of the Russian government bond market: Clearstream customers can now safekeep Russian government bonds (OFZ bonds) in addition to Russian equities. The expansion of the service for Russia has been made possible by recent changes in the local securities market regulation. The changes were developed through close collaboration between local market participants and regulators.
Mark Gem, Member of the Executive Board and Head of Business Management at Clearstream, said: “Clearstream was the first ICSD to establish a service for Russian equities. We have now again demonstrated our ongoing commitment to the market and the region: The fact that rouble-denominated bonds are eligible for triparty collateral use shows that we are taking a holistic approach to the evolution of the Russian bond market. We will continue to implement the positive market developments in Russia that will be phased in during the course of 2012.”
Thibaud de Maintenant, Global Head of Direct Securities Services at Deutsche Bank, said: “We are very pleased to partner with Clearstream and to provide a robust and comprehensive settlement link to the Russian market. This is an important moment for the Russian economy and we are very happy to facilitate access to the local government bond market for a renowned international market participant such as Clearstream. We are delighted about this cooperation as it clearly demonstrates our strength in Eastern Europe and our dedication and commitment to the Russian market.”
Clearstream has maintained an active sub-custody link to the Russian market, via Deutsche Bank Ltd. Moscow, since May 2006 and was the first international central securities depository (ICSD) to do so. In addition, Clearstream was the first ICSD to establish the Rouble as a settlement currency, using Deutsche Bank Ltd. Moscow as its cash correspondent bank, following the introduction of the Currency Regulation Law in Russia on 1 January 2007.
Clearstream provides a single point of access to multiple asset classes in multiple markets. The company is moving ever closer to the markets it serves providing local, regional as well as global solutions. Clearstream has the largest ICSD settlement network covering 52 domestic markets across the world. This network also includes all Eurozone countries and links to the major emerging economies, namely Brazil, Russia, China and South Africa. Talks are already under way on access to the Indian market to complete Clearstream’s BRICS coverage.
ICSDs like Clearstream were set up in the 1970s to provide settlement and custody services for Eurobonds. In recent years they have established settlement links to dozens of local markets and settlements of trades in domestic securities – primarily European government bonds – account today for a significant portion of the ICSD revenues. Settlement links enable ICSD participants to settle trades with other participants in the same ICSD, with participants in the other ICSDs, or with local market participants. Clearstream has evolved from being a pure Eurobond house to holding equity, funds, structured products and commodities.
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About Deutsche Bank
Deutsche Bank is a leading global investment bank with a substantial private clients franchise. Its businesses are mutually reinforcing. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With more than 100,000 employees in 72 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions, creating lasting value for its clients, shareholders, people and the communities in which it operates. www.db.com
Deutsche Bank’s Trust & Securities Services (www.tss.db.com
) business, part of Global Transaction Banking, is one of the leading providers of trustee, agent, depositary, registrar, SPV management and related services for a wide range of financial structures and transactions. It is a leading depositary for American and Global Depositary Receipts, provides fund and hedge fund administration and, through a fully integrated network of specialist offices worldwide, provides domestic custody services in more than 30 securities markets.
As an international central securities depository (ICSD) headquartered in Luxembourg, Clearstream provides the post-trade infrastructure for the Eurobond market and services for securities from 52 domestic markets worldwide. Clearstream’s customers comprise approximately 2,500 financial institutions in more than 110 countries. Its services include the issuance, settlement and custody of securities, as well as investment fund services and global securities financing. With almost 11 trillion Euros in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities.
As a central securities depository (CSD) based in Frankfurt, Clearstream also provides the post-trade infrastructure for the German securities industry, offering access to a growing number of markets in Europe.
Further information: www.clearstream.com