Sub-custody guide: Russia
Corporate actions reform in the Russian market is aimed at
simplifying the participation process in corporate events and reducing costs by
eliminating the paper document workflow. By May, the national settlement
depository plans to switch on usage of electronic means of communication for
general meeting voting.
Information on general meetings will be electronically
cascaded through the chain of corporate actions processing participants.
Further steps of corporate action reform are discussed on the corporate actions
development committee supervised by the depository managing board and chaired
by the head of Global Securi ties Services Russia, UniCredit, Alexander
Nazarov.
The depository has launched the electronic matching of OTC
trades, allowing clients to receive information on the most relevant potential
instructions among all those sent by the counterparties in real time.
Last year was extremely challenging for custodians in Russia
since they became became full tax agents for income derived from Russian
securities, explains Evgenia Klimova, head of GSS Russia at Raiffeisen Bank
International.
Following certain regulatory amendments and clarifications
incorporated into the Securities Market Law and ancillary regulations with
regard to interpretation of a foreign nominee concept, more foreign
institutions acting in the interest of third parties took the decision to
segregate proprietary and clients’ positions by transferring the latter to
foreign nominee custody accounts, says Mikhail Bratanov, head of Societe
Generale Securities Services in Russia.
Found this useful?
Take a complimentary trial of the FOW Marketing Intelligence Platform – the comprehensive source of news and analysis across the buy- and sell- side.
Gain access to:
- A single source of in-depth news, insight and analysis across Asset Management, Securities Finance, Custody, Fund Services and Derivatives
- Our interactive database, optimized to enable you to summarise data and build graphs outlining market activity
- Exclusive whitepapers, supplements and industry analysis curated and published by Futures & Options World
- Breaking news, daily and weekly alerts on the markets most relevant to you