January 10, 2014 - 14:13 AMT
PanARMENIAN.Net - National Settlement Depository (NSD), Russia's central securities depository, and the Central Depository of Armenia (CDA) have signed a Memorandum of Cooperation aimed at further development and strengthening of mutually beneficial relations, Finextra reports.
The parties agreed to expand bilateral cooperation for the creation of an efficient and reliable system of record keeping for trans-border securities settlements.
According to the memorandum, the depositories intend to establish close business relations and to organize the exchange of information regarding securities received for servicing and changes in the documents regulating the record keeping systems’ operations. The parties also plan to exchange information regarding the technologies, standards and development plans they use and their participation in projects, working groups and other events of interest for both depositories. In addition, the parties plan to conduct bilateral consultations on all spheres of cooperation.
Eddie Astanin, Chairman of the Executive Board, NSD, commenting on the development, said: “Development of strategic partnerships with central securities depositories of the CIS countries is one of NSD's priorities as Russia’s central securities depository. Our joint work in the Association of Eurasian Central Securities Depositories contributes to it. We are sure that cooperation between Russia’s and Armenia’s central securities depositories will have a positive impact on the development of our countries’ financial markets. The signed memorandum will allow us to facilitate access to information about securities serviced by the Russian and Armenian CSDs. This will improve our markets’ transparency for investors in both our countries.”
Vahan Stepanyan, CDA Chief Executive Officer, added: “We highly value expansion of our cooperation with AECSD and, particularly, NSD, in the area of cross-border settlement and securities account keeping, as well as information exchange. We believe that the Memorandum will contribute to strengthening of not only cooperation between the two depositories, but will also increasing cross-border trading and investment flow between our countries. Meanwhile, availability of material information on securities and issuers to local and foreign investors will facilitate investment decision making.”
In October 2011, the depositories signed an agreement on opening and maintaining the NSD’s nominee account with CDA. This allowed NSD clients to use safekeeping and record keeping services, as well as settlement services, on Armenian issuers’ securities.