Change Place of Safekeeping for DCC's Assets
OREANDA-NEWS. August 30, 2012. Depository Clearing Company (DCC) herewith informs its clients that with effect from November 01, 2012, DCC's interdepository securities account with NSD will become the main place of safekeeping for its assets.
This is part of the integration of DCC and NSD and is related to NSD's obtaining the CSD status1.
The place of safekeeping will be changed through transfer of securities from DCC's nominee accounts in share registers to respective NSD's accounts. After the transfers are completed, DCC's accounts with share registers will be closed.
Please note that the primary place of safekeeping will change for all the securities accepted for servicing by NSD and DCC except for OAO Gazprom shares and securities of the issuers that maintain their registers themselves.
In this connection, the following two lists of issuers will be published on DCC's web-site and NSD's integration web-site:
List of issuers whose securities will be kept at NSD (List of Securities to Be Transferred to NSD);
List of issuers whose securities will not be transferred to another place of safekeeping (issuers which maintain their registers themselves).
With effect from November 01, 2012, to execute Participants' instructions for withdrawal of securities included in the List of Securities to Be Transferred to NSD, DCC will generate a respective instruction to NSD. NSD will then submit a transfer order to the share register.
If securities from the List of Securities to Be Transferred to NSD are deposited to Participants' accounts with DCC from counterparties' accounts in share registers, they will be transferred to NSD's nominee account in the register. However, the reason for the transfer indicated in the transfer order shall still include the number of depository / interdepository agreement between the Participant and DCC and the indication of Interdepository Agreement No. 2-D-799/DMS-0 (2-Д-799/ДМС-0) of April 30, 1999 between DCC and NSD.
The procedure for execution of instructions on OAO Gazprom shares does not change.
Participants' expenses for assets safekeeping and withdrawal of securities into the register / deposition of securities from the register will remain unchanged and will be charged in accordance with the current DCC Fee Schedule. NSD fees will not be invoiced to DCC Participants.
DCC Participants will be provided with the standard reports upon execution of instructions.
With effect from November 01, 2012, DCC stops depositing securities to its accounts in share registers and closes such accounts. If securities are deposited to DCC's account in the register after November 01, 2012 before the account is closed, the Participant will be charged a fee of RUB4,910 (VAT exclusive) for execution of the instruction. This fee was adopted by the DCC's Committee of major Participants and will be effective from October 2012.
Settlement of instructions via the DCC-NSD Bridge will become impossible with effect from November 01, 2012 (except for OAO Gazprom shares). DCC will stop being an allowable place of settlement for NSD. All transfers between DCC and NSD clients will be made by NSD's intradepository transfers, which has the following benefits for the clients:
No difference between “Bridge” securities and those not admitted to Bridge settlement, transfer of all securities between DCC and NSD through the same scheme;
Online settlement of instruction;
Lower cost of transfers between DCC and NSD;
Possibility to transfer securities throughout the whole operating day of NSD.
Please get ready to DCC's transfer of assets in advance. Remember that it may require additional effort on your side, and you may have to negotiate it with your clients. You can find additional information on the scheme in the notification published on the websites of DCC and NSD.
Please note that SSS schemes between NSD and custodians and ESSS between DCC and custodians will function in the usual mode.
Additional information on the transfer of DCC's assets to NSD is available in the Road to CSD Status section of the integration web-site.
Shall any questions relating to this message arise, feel free to contact your account manager at NSD or DCC.
1 Change of place of safekeeping is an allowable transaction in accordance with Par. 11. 7 of FCSM Regulation No. 36 of October 16, 1997 On Depository Activities in the Russian Federation, and the Terms and Conditions of Depository Activity of DCC, which provide for open safekeeping of securities.
Комментарии