The Nature of Partnerships Amongst CSDs

Vahan Stepanyan

The Association of Eurasian Central Securities Depositories AECSD ChairmanCEO , Central Depository of Armenia, NASDAQ OMX Group, Inc.

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Association MembersCentral Depository of Armenia The National Depository Centre (Azerbaijan)Republican Central Securities Depository (Republic of Belarus)Georgian Central Securities DepositoryNational Securities Depository of MoldovaCentral Securities Depository (Kazakhstan)Central Depository (Kyrgyzstan) State CSD of the Republic of UzbekistanDepository Clearing Company (Russian Federation)The National Settlement Depository (Russian Federation)The National Depository of UkraineUkrainian Securities Depository

AECSD Objectives

• Harmonization of the regulatory framework; • Establishment of depository links among the members to support cross-

border securities transactions; • Standardization of the technologies for the depository operation,

procedures for depository transaction processing, and rules and regulations governing the depositories' activities;

• Adoption of international messaging standards for depository transactions and their use in the national practice;

• Development of Electronic Document Interchange; • Coordination of the Association members’ processes aimed to integration

into the global depository system.

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4The Chairman is re-elected annually by AECSD Charter.

General Meeting

Chairman

SecretariatNSD, Russia

Working Groups• Depository Links• CSD Legal Issues• Development of Electronic Messaging Standards• Administration of the Association Website•CSD12 Steering Committee

ACESD Governance Structure

• AECSD has gained an observer status in ECSDA, AMEDA and ACG

• AECSD participates in international conferences and forums (CSD forums, Annual Russian Securities Forum, SIBOS etc.)

• AECSD organizes and holds seminars and trainings on depository and clearing services for Association members 5

International Activities

AECSD is committed to host CSD12 in Russia

CCG investigation resultsConsidered Collaboration areas in questionnaire

• Exertion of international influence• Business model• Risk management• Services• Standardization• IT…

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Actual directions of collaboration

CCG investigation results

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AECSD business areas of future

CCG investigation results

Cooperation types

• Correspondent relations• Membership and partnership• Memorandums (understanding, cooperation)• Other (opening accounts, links, etc …)

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Correspondent relations map

Kazakhstan

Belarus

Armenia

AzerbaijanGeorgia

Russia

Moldova

RussiaUkraineUzbekistan

Kirgizia

Ukraine

Membership & Partnership• CDA Armenia in SWIFT,

ANNA• AUSD Ukraine in SWIFT• RCSD Belarus in ANNA• CSD Kazakhstan in

ANNA , IAE CIS, ACG• UzCSD Uzbekistan in

ACG

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• NSD Russia in ANNA, ROSSWIFT, ECSDA, NSMA

• DCC Russia in ECSDA, CEECSDA, ISSA

• NDC Azerbaijan in ANNA, ISSA, FEAS

• NDU Ukraine in ANNA, SWIFT, IAE CIS, BIBC

Memorandums

• NSD Russia with UzCSD Uzbekistan, NDC Azerbaijan, RCSD Belarus, Euroclear, NSDL India, CDSL India, HKEx Hong Kong

• NDU with State Agency of Ukraine for Investments and Innovations, CCP Austria Abwicklungsstelle fuer Boersengeschaefte GmbH, CSD. Austria, and Vienna Stock Exchange

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• NDU with NDC Azerbaijan, Latvian Central Depository

• UzCSD Uzbekistan with KSD Korea

MoU MoC

Other cooperation• NDC Azerbaijan with

Clearstream Banking, Thomas Murray, SWIFT, CSDs of Turkey, South Korea and China

• DCC Russia with Association of Global Custodians (AGC) UzCSD Uzbekistan with NSD Russia

• NDU with Rosbank, Infinitum SD, Central Moscow Depository, OeKB, D&C Tec.

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• AUSD Ukraine opened account with CDF Russia, Oesterreichische Kontrollbank, Austrian central depository

• RCSD Belarus keeps correspondent relations with INFINITUM Specialized Depository OJSC, Depository Clearing Company CJSC, SEB Bank OJSC and UniCredit Bank CJSC AUSD with FMI under the USAID Capital Markets Project

Most Attractive CSDs’ Partnerships

• Exchange and Depository & Settlement interfaces, 8th international conference of AECSD Joint with IAE CIS

• Correspondent relations• Cross – Border links & settlement• Mergers: NDU and SSD in Ukraine, MICEX and RTS

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AECSD Secretary Contacts

National Settlement Depository

P.O.Box 13, bldg 1, Mashkova St., Moscow,105062, RussiaTel.: +7 (495) 232-0513 E-mail: aecsd@aecsd.com www.aecsd.com

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Thank you. Your questions please