1 Jul 2022 16:26

Professional participants led by Moscow Exchange to create club to protect interests amid EU restrictions

MOSCOW. July 1 (Interfax) - The Moscow Exchange and professional participants of the Russian stock market have agreed to unite to protect the rights of investors amid European Union restrictions in relation to the National Settlement Depository (NSD, a part of the Moscow Exchange group).

The NSD was included in the EU sanctions list at the beginning of June. Depository bridges between NSD and European securities depositories have not been working since early spring.

"The external constraints faced by investors require all market participants to join forces," the exchange said in a statement.

Members of the Investor Protection Club, which is taking shape, will interact with market participants on a permanent basis regarding the imposed external restrictions, provide consultations and explanations. "Particular attention will be paid to the protection of the rights of unqualified investors," the exchange said.

"The Moscow Exchange said it intends to defend the interests of investors and the NSD in the European jurisdiction, in particular, it plans to challenge the European Union's decision to include the NSD in sanctions lists. This will help protect the rights of investors whose assets have been blocked by international settlement depositories," the exchange said.

"Protection of investors' interests is the key task of the club created on the basis of the Moscow Exchange. To resolve this, the club will employ all legal and negotiation windows available in the current environment and will help investors to promptly receive reliable information," Sergei Shvetsov, head of the Moscow Exchange board of directors, was cited as saying in the statement.

"We expect to find a common solution for exemption from blockage of securities held in NSD's accounts with global European securities depositories. Such blocking, which significantly violates the property rights of a large number of investors, undermines the traditional trust in the European financial industry and is regrettable," NAUFOR President Alexei Timofeev said in turn.