Central depository of Armenia and Russian national settlement depository sign correspondent relationship agreement

13.10.2011 14:23
Central depository of Armenia and Russian national settlement depository sign correspondent relationship agreement

YEREVAN, October 13, ./ARKA/. The Central Depository of Armenia open joint stock company (CDA) and the National Settlement Depository (NSD), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, have concluded an agreement on opening and maintenance of NSD's nominee holder account with CDA, Nasdaq OMX Armenian stock exchange said in a statement.

It said the signing ceremony took place in Yerevan on 6 October, 2011. The depositories consider an expansion of cooperation within the framework of the Association of Eurasian Central Securities Depositories (AECSD) as mutually beneficial and promising. The two companies plan to establish close business relations.

Eddie Astanin, Chairman of the Executive Board, NSD, said: "Within the framework of NSD's strategic development directions we consider operational interactions with central depositories of CIS countries as one of our priorities. We are servicing securities of CIS countries' issuers (including settlements on transactions and conducting of corporate actions) on basis of our customers' and issuers' needs; all this is being done in close interactions with central depositories-AECSD members."

Vahan Stepanyan, Director, CDA, pointed out: "As a result of our cooperation, National Settlement Depository has gained a right to open a nominee holder account with the Central Depository of Armenia; it will allow NSD to buy Armenian securities on behalf of its clients. This is an important step towards simplification of investment process and stimulation of Russian investments in Armenian securities."

The account opened with CDA allows NSD to provide to its customers depository services related to custody and recordkeeping of Armenian issuers' securities and to conduct settlements on securities. To date NSD receives Armenian issuers' securities for servicing upon its clients' requests.

In January 2008, Nordic exchange operator OMX Group acquired 100% of shares of the Armenian Stock Exchange (Armex) and the Central Depository of Armenia (CDA). After the combination of NASDAQ and OMX in February 2008, Armex and CDA have become fully owned by the NASDAQ OMX Group, Inc. On January 27, 2009, “Armenian Stock Exchange” ojsc was officially renamed as “NASDAQ OMX Armenia” ojsc. On June 5, 2009, “NASDAQ OMX Armenia” ojsc became the owner of 100% of the shares of the “Central Depository of Armenia” ojsc. -0-


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