Over 100 blocked U.S. securities available for OTC trading in Russia with central counterparty

MOSCOW. April 29 (Interfax) - Investors in Russia can now make over-the-counter (OTC) transactions with blocked foreign securities with settlements through a central counterparty.

"Starting Monday, the technical possibility to make OTC deals with 127 foreign securities recorded in the [National Settlement Depository (NSD)] was made available in the OTC service with a central counterparty," the Moscow Exchange told Interfax.

The list includes 108 U.S. stocks, such as Apple, Amazon, McDonald's and Tesla , and 19 Finex funds.

Unqualified investors can sell previously purchased securities, but only qualified investors can buy.

"This decision creates additional conditions for investors who want to get rid of blocked foreign assets," the Central Bank of Russia (CBR) said, recalling that it was possible to sell such an asset on the OTC market before, but not through a central counterparty.

"Any investor can be a seller, but only a qualified investor who can independently assess the risks of acquiring 'frozen' assets, including factor in existing restrictions on disposal and participation in corporate actions, can buy. One must also take into account the particulars of taxation on deals with such securities, since they are acquired on the OTC market, not in organized trading," the CBR said.