SPB Exchange begins preparations for exchange of investor assets frozen in 2022

MOSCOW. Dec 6 (Interfax) - The SPB Exchange and market participants have begun preparations for the exchange of Russian investors' assets which were blocked in 2022 for non-residents' funds from type "C" accounts, as provided for by presidential decree, the Exchange's press service told Interfax.

"Market participants are preparing to exchange Russian investors' blocked assets for funds of foreign investors from type 'C' accounts, as provided for by Russian Presidential Decree No. 844. In this regard, the settlement depository of the St. Petersburg Exchange has been accepting orders from trading participants (brokers) for transfers of foreign securities since December 1 only within NSD, the superior depository for SPB Bank," the press service said.

This refers to foreign securities that were separated out in 2022 and are located in non-trading sections, a representative of the St. Petersburg Exchange said. "In these securities' custody chain, there are NSD and the higher-level Euroclear and Clearstream foreign depositories. These are the securities that a trading participant can transfer within NSD from the accounts of the settlement depository in SPB Bank to their own accounts in the same NSD. For depository operations for exchange purposes in accordance with Decree No. 844, the fee for withdrawal of securities does not apply," the press service added.

The Russian Presidential Decree No. 844 "On additional temporary economic measures related to the circulation of foreign securities," which creates conditions for the exchange of investor assets blocked in Russia and abroad, was signed on November 8. In accordance with the decree, non-residents can redeem blocked foreign securities using funds in their "C" type accounts. Transactions will be concluded "via bidding." Foreign securities purchased by non-residents will be credited to special transit securities accounts opened by Russian depositories in their name. Then, on the instructions from non-residents, these securities will be written off to accounts opened with foreign organizations. The Decree limits the total initial value of securities owned by one resident that can be alienated via this mechanism to 100,000 rubles.