Transition Plan for CSD Eligible Securities

AO UniCredit Bank
Summary: 
NSD has published the roadmap for the transfer of securities from the registrar to the NSD. The roadmap provides the complete transition of CSD eligible securities to the NSD until the end of 1Q 2013.
Mon, 18/02/2013

The National Settlement Depository (NSD), which has been the Central Securities Depository (CSD) of Russia since 6 November 2012, has published the roadmap for the CSD eligible securities transfer that are currently held with the registrars to the CSD account of the NSD opened with the registrars.

In accordance with the legislation, CSD eligible securities (securities with prospectus issued) should be held with the CSD only in case the relevant CSD account opened with the registrar. In order to facilitate smooth transition of the portfolios and not to affect settlement, the NSD in cooperation with the leading custodians, including ZAO UniCredit Bank and registrars, have prepared the roadmap below, which will be used by all market participants for joint actions:

  • The transition of the CSD eligible securities to the NSD should be completed by the end of 1Q 2013;
  • The mass transition of the CSD eligible securities is planned for  March 2013;
  • Since the legislation allows the NSD to convert the existing accounts with the registrars to CSD accounts, such a conversion will be done simultaneously in all registrars. The relevant conversion application will be sent by the NSD to the registrars until 26 March 2013 in order to complete the entire conversion process before 29 March 2013;
  • Starting from 1 April 2013 the transactions through the NSD-CSD account with the registrars will be executed based on the CSD legislation rules, which provide only NCBO transactions, counter orders matching and compulsory indication of the securities’ owner.

Due to the expected overload of instructions, the NSD recommended to start the transfer of securities from the registrars to the NSD before 25 March 2013. Clients should also consider the relevant deadlines of the custodians. Investors, who complete the transfer of CSD eligible securities to the NSD’s account with the registrars before 25 March 2013, will not execute any further actions in respect of the transition to the CSD account.

Impact on investors: All securities that are recognised as being CSD eligible in accordance with the legislation should be transferred to the CSD accounts with the registrars once these accounts appear.