International securities depository Clearstream opens account at NBU

The international central securities depository Clearstream and the National Bank of Ukraine (NBU) signed an agreement on correspondent relations for further opening a securities account at the Depository of NBU, the central bank’s press service reported.

“On March 13, the international central securities depository Clearstream and National Bank of Ukraine signed the correspondent relations agreement for further opening a securities account at the Depository of the National Bank of Ukraine,” reads the report.

It is noted that for the first time in its history, Ukraine joins an international securities depository. This step will lay the foundation for the upcoming opening of a domestic link between the National Bank of Ukraine and Clearstream.

Also according to the NBU, establishing a link with Clearstream simplifies the access of foreign investors to the Ukrainian securities market, namely, domestic government bonds. Settlement of hryvnia-denominated government domestic loan bonds through the ICSD’s system will reduce the transaction and time costs for investors and make these transactions coherent with the best international standards.

"Correspondent relations with the international depository would enable Ukraine to accelerate integration into the global capital market,” said Deputy NBU Governor Oleh Churiy.

Clearstream is an international clearing system located in Europe; which manages, safekeeps and administers the securities that it holds on behalf of its customers. Clearstream International was formed in January 2000 through the merger of Cedel International and Deutsche Boerse Clearing. The full integration of Clearstream was completed in July 2002. It has three subdivisions: Clearstream Banking Frankfurt, Clearstream Banking Luxembourg and Clearstream Services.

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