To reduce risks in the settlement system of the regulated securities market, accelerate inter-regional settlements and provide settlement services to participants in all exchange-based markets in Russia’s regions, the MICEX Settlement House has opened its branch in Rostov-on-Don. The Bank of Russia has entered the Rostov branch of the MICEX Settlement House into the Book of state registration of lending institutions (registration number 3294/1). The Rostov branch is to begin its work in May this year. The address of the Rostov branch: Office 201, 78 Prospect Sokolova, Rostov-on-Don, 344010.
The MICEX Group has opened the Rostov branch in the framework of the project to develop a network of its regional branches. The implementation of this project will improve the efficiency of regional participants and provide them with new settlement services, which, in turn, will help to attract new investors to exchange-based markets.
The implementation of an effective system of liquidity management and the use of inter-branch settlements to enter funds to clients’ accounts, opened outside Moscow Region, will enable to make payments to regional participants for the results of trading in all of the MICEX Group’s markets on the day of trading.
The streamlining of the procedure of inter-regional settlements, the adoption of unified technological standards and software and the introduction of the MICEX SH’s up-to-date technologies in regions will help to improve the quality and the reliability of settlement services provided to regional participants.
The opening of the Rostov branch of the MICEX SH is part of the general program to develop regional exchange centers of the MICEX on the basis of existing regional exchanges. In March 2007, the Rostov Currency and Stock Exchange, whose main shareholder is the MICEX, changed its name for Regional Exchange Center MICEX-South (“MICEX-South”). While the Rostov Currency and Stock Exchange was a regional currency exchange performing the functions of the MICEX’s representation in certain areas of business, the MICEX-South is to become the full-scale front office of the MICEX Group in Southern Federal District. Regional exchange centers are to emphasize interacting with regional issuers, participants in trading and investors. They are expected to promote the whole range of financial instruments and services developed by the MICEX Group. They will also have to conduct educational and training programs with the participation of the MICEX Group.
Background
The MICEX Settlement House was established in 1996 by leading commercial banks, the MICEX and regional currency and stock exchanges. It is a non-bank lending institution, which provides settlement services, including cash settlements for transactions effected by participants in the financial market. By the size of assets, the MICEX Settlement House is among Russia’s 30 largest lending institutions. It provides settlement services in all exchange-based markets. The volume of payments which are made daily via the correspondent account of the MICEX SH with the Bank of Russia for transactions effected on the MICEX amounts to 200 billion rubles. About 400 Russian banks, making up around 30% of the Russian banking system, have opened their accounts with the MICEX SH. Clients’ balances in the MICEX SH amount to over one third of funds of all lending institutions of Moscow Region kept in accounts with the Bank of Russia.
