The Bank Of Russia Begins To Carry Out Deposit Operations With Lending Institutions Using The MICEX Trading And Settlement Systems

At deposit auctions for the period of 4 weeks and 3 months, held by the Bank of Russia 18 March 2004, the banks of Moscow region successfully tested the MICEX System of electronic trading to conclude deposit transactions with the Bank of Russia. Eleven million rubles worth of deposit transactions were concluded with the average weighted rate of 2.00% of yearly interest for 4- week deposits and 3.30% of yearly interest for 3-month deposits. Settlements for these transactions are effected through the accounts of banks, opened with the MICEX Settlement House.

19 banks of Moscow region and 56 regional banks have shown their interest in participating in deposit operations of the Bank of Russia based on the MICEX trading and settlement system. They are preparing documents necessary for obtaining access to participation in deposit operations of the Bank of Russia based on the MICEX trading and settlement system.

The MICEX trading and settlement system is based on the national infrastructure of the organized securities market, which covers 8 main financial regions of Russia.

The technology of participation in deposit operations of the Bank of Russia through the MICEX trading and settlement system gives lending institutions additional possibilities to manage assets, including:

• highly effective access to deposit operations of the Bank of Russia (automated mode of concluding transactions, generating and transmitting reports, electronic document turnover);
• effecting settlements for deposit transactions through bank accounts, opened with regional settlement centers of the organized securities market;
• the possibility of speedy use of funds, participating in deposit operations, in other sectors of the MICEX financial market (the government securities market, the stock market and the currency market).