The Bank of Russia revisits the distribution of roles in the trading infrastructure. By Daria Fadeeva, Relationship Manager, GSS Russia
The Bank of Russia is considering reviewing the role of the participants of the existing infrastructure model consisting of the CSD, custodians and registrars. In particular, it is expected that the CSD will be granted the ability to open direct accounts for foreign investors (global custodians) with the CSD (currently not allowed by law).
While the “operator” model (wherein local sub-custodians act as operators of those accounts) may be getting more recognition in the market, the concept is being actively lobbied for by the CSD at the moment, however the anti-monopoly bodies need to decide how this monopolistic situation can be restrained.
Revision of registrars’ fee schedule
The Bank of Russia has agreed to allow registrars to increase the maximum level of their fee schedules. Up till now, the maximum cap applied by the registrars was set from EUR 7.50 to EUR 150.00, depending on the type of transaction. Now, almost all tariffs will be raised by 50%.
There are currently 35 registrars in Russia. For non-CSD securities, there is a possibility to hold securities with registrars directly (in an owners’ accounts or through local nominees).