Moscow Exchange: T 2 settlement cycle to be introduced for U.S. dollar-denominated Eurobonds
OREANDA-NEWS. Moscow Exchange will allow deferred settlement and the absence of full prefunding requirement for U.S. dollar-denominated Eurobonds from 25 January. Sovereign Eurobonds, corporate Eurobonds and Russian bonds denominated in USD will be traded with T+2 settlement. This settlement cycle will replace T0 settlement in USD for those instruments.
"Moving Eurobonds to the T+ settlement period will boost liquidity for them and allow participants to trade Eurobonds against other assets as collateral", said Equity & Bond Market Managing Director Anna Kuznetsova.
Eurobonds will be available for the T+2 central order book, CCP-cleared negotiated trades without full prefunding as well as negotiated trades.
In the T+2 central order book, Eurobonds will be traded also during the opening and closing auctions.
Trade terms for Eurobonds denominated in EUR and RUB will remain unchanged.
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