Russian depositaries could part company
MOSCOW. Nov 26 (Interfax) - Shareholders in Russia's National Depositary Center (NDC) and Depositary Clearing Center (DCC) are close to an agreement which would see the NDC dispose of its stake in DCC, a source in financial circles told Interfax.
NDC is the depositary for the MICEX Group, and DCC is the depositary for the RTS stock exchange. NDC became a DCC shareholder in 2004, when plans existed to consolidate exchange trading infrastructure, starting with the amalgamation of the two depositaries.
But now, when the situation in Russia is such that there are two alternative exchanges which are developing independently of and competing with each other, market experts have started to cast doubt over the advisability of merging stock exchange infrastructure.
"An agreement could soon be reached," Interfax's source said.
Another source said the issue of NDC pulling out of DCC was discussed at the MICEX board's latest meeting and that the RTS was prepared to discuss the terms for buying the shares owned by NDC.
Neither exchange was willing to make official comment.