Last Tuesday, the Federal Financial Markets Service (FFMS, Russia’s financial markets watchdog) announced that it had granted Central Securities Depository (CSD) status of National Settlement Depositary (NSD). This was a longawaited announcement and, coupled with other recent reforms, would make the Russian financial market significantly more open and accessible to international investors.
Why does CSD matter? According to the CSD law, since July
What is the effect? We think the most significant and visible impact would be in the sovereign bond (OFZ) market. We expect the share of
Lifting of DR limits now technically accessible. The FFMS has previously conditioned the current 25% DR limits being eliminated on the CSD going operational. We do not now see any technical obstacles for lifting DR limits.