SPB Exchange expects settlements on Nov 13 on deals suspended due to sanctions

MOSCOW. Nov 10 (Interfax) - Settlements on deals that were suspended due to sanctions imposed on the SPB Exchange may take place on Monday, CEO Yevgeny Serdyukov said.

Foreign intermediaries, he explained in a video message published by the exchange, from both friendly and unfriendly jurisdictions, suspended processing of any orders to conclude transactions or move securities the moment the sanctions were reported. "They demanded that we conduct a compliance procedure. We started carrying out this procedure, at the same time we were forced to suspend trading, and now only settlements on transactions concluded before the sanctions were imposed are available to us," he said.

"In order to carry out delivery and settlements between market participants here at the SPB Exchange, we had to receive comprehensive information on settlements from foreign intermediaries. Due to the current situation, we managed to get complete information only yesterday, at which point we launched the delivery and settlement procedure between market participants. At the same time, we have accumulated a queue of several unsettled days. Because of this, the algorithms work slower and we have to resort to non-standard procedures. According to our calculations, settlements will be completed on Monday," Serdyukov said.

He also noted that in parallel with the compliance procedure with foreign intermediaries, the exchange has turned to international lawyers specializing in sanctions in order to develop together with them, with market participants and the Central Bank the procedure for investors to take action to receive securities or sell them. "Once agreed upon, this procedure will be published," Serdyukov said.

On November 2, the U.S. Treasury Department added the SPB Exchange to its sanctions list. After this announcement, trading in foreign and Russian securities on the exchange was suspended. Trading in foreign securities was suspended for compliance procedures, consultations with Russian and foreign counterparties will take at least seven working days, the exchange said on November 6. Trading in Russian securities resumed on November 3.

The SPB Exchange is the main platform for organizing trades in foreign securities on the Russian market, with more than 2,000 shares and depositary receipts of international companies, as well as ETFs, available for trading.