NSD fully open to dialogue with Euroclear, Clearstream, no blocks on its part - MOEX
MOSCOW. April 19 (Interfax) - Russia's National Settlement Depository (NSD) is fully open for dialogue with Euroclear and Clearstream, and there are no impediments on its part, Kirill Pestov, head of business development at the Moscow Exchange , said at the Finfin 2022 conference.
"The ball is fully in Euroclear and Clearstream's court, the NSD is fully open to dialogue, Western colleagues are ignoring us, and we can't say when movement will come from that side. We're blocked from that side; from the side of the NSD, there are no blocks to Euroclear and Clearstream, and we're ready to cooperate," Pestov said.
International securities depository Clearstream notified the NSD at the end of March that it had blocked its account.
Another leading international depository, Euroclear, restricted operations on the NSD's account on March 18.
"According to received information, transactions on the NSD account have been restricted by Euroclear in order to implement regulation (EU) 899/2014 regarding restrictive measures in connection with Russia's actions that are destabilizing the situation in Ukraine, with amendments and updates made by council regulation (EU) 2022/328 dated February 25, 2022," the NSD said.
Euroclear has since not executed any instructions to carry out transactions with securities and money, including instructions to participate in corporate actions on foreign securities.
The NSD also imposed restrictions on transactions on the accounts of Euroclear and Clearstream at the beginning of March. "The NSD has not blocked the accounts of European clearing houses Euroclear and Clearstream. According to the instructions of the Bank of Russia, the NSD has restricted payment abilities on securities of Russian issuers for foreign individuals and legal entities and the transfer of rights to such securities," it said.
"Clearstream Banking informs customers that the National Settlement Depository (NSD), acting pursuant to Prescription No. 018-34-3/1202 issued by the Central Bank of the Russian Federation on 28 February 2022, has blocked all securities held on Clearstream Banking's FNH Account until further notice," Clearstream Banking said on March 1.
In accordance with the instructions of the Central Bank, the NSD is obligated to freeze payments on securities of Russian issuers for foreign individuals and legal entities, Clearstream said.
"NSD has confirmed that: all assets held in our account with NSD are frozen," Euroclear said at the time.
Euroclear has disabled its ruble account with ING Bank in connection with the current situation. "Therefore, clients are no longer allowed to transfer any rubles to ING Bank," Euroclear said.
Eurclear's ruble account with VTB was closed still earlier, and the ruble bridge between Clearstream and Euroclear has been closed.