OREANDA-NEWS. The Central Securities Depository of Poland (KDPW) has signed a Memorandum of Understanding with the National Settlement Depository of Russia (NSD). It is the first step towards a future operational link.

The Memorandum of Understanding sets out the terms of co-operation between the CSDs in their operations including exchange of information, cooperation in securities depository and settlement related matters to help foster the prosperity of their financial markets and promote cross border investment.  Planned initiatives are also aimed at opening an operational link between KDPW and NSD which in the future could enable dual-listing of companies on the Warsaw Stock Exchange and the Moscow Exchange.

“The Central Securities Depository of Poland has for years been active in developing relations with and promoting the Polish capital market on Eastern markets. We signed a Memorandum of Understanding with the Azerbaijan CSD in 2012 and with the Belarusian CSD in 2009. I do hope that the signed MoU will make it possible in the future to create a joint operational link,” said Iwona Sroka, President and CEO of the Central Securities Depository of Poland.

Eddie Astanin, Chairman of the Executive Board, NSD, commented: “The Russian market, as it develops, is becoming more and more international. This process reflects the Russian economy’s place and role in the world. As a central securities depository, NSD is one of the conductors of foreign investors’ capital flow to the domestic market and Russian investments to external markets. This model is at the core of the new relationship between Russia’s and Poland’s central securities depositories, which is being strengthened by the Memorandum of Understanding we are signing.”

KDPW currently maintains 19 operational links with foreign CSDs, including 10 direct links between KDPW and a foreign CSD and 9 indirect links via one of two international depositories (Clearstream Banking Luxembourg or Euroclear Bank) or a custodian bank (with Bulgaria).

Initiatives of the Central Securities Depository of Poland aiming to develop new international operational links to improve the profitability of existing links are part of KDPW’s Strategy which provides for co-operation with the Exchange and market participants in the listing of foreign companies on the WSE.

Furthermore, KDPW is working to simplify the procedures of registration, participation and corporate actions processing for foreign issuers from countries with which KDPW has or will have an operational link.

NSD has links with CSDs/ICSDs in seven countries including 5 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 2 links opened by NSD with NDU (Ukraine) and "Central Depository of Armenia" OJSC.

NSD strives to develop harmoniously in order to attract foreign investors to the Russian market, on the one hand, and to provide direct access to foreign markets for Russian investors, on the other hand. NSD is interested in mutually beneficial bilateral relations with the central securities depositories of other countries. This will allow the creation of favorable conditions for trading in foreign issuers’ securities on the Moscow Exchange, including IPOs.