Friday 6th March 2015
NEWS TICKER, FRIDAY, MARCH 6TH 2015: —BNY Mellon has been appointed by Accor, the hotel operator based in France, as depositary bank for its sponsored American depositary receipt (ADR) program. Accor previously traded in the US as an unsponsored DR. Each sponsored ADR represents one-fifth of an ordinary share and trades on the OTC Markets under the symbol ‘ACCYY.’ Accor’s ordinary shares trade on Euronext Paris under the code ‘AC’— The US Inland Revenue Service (IRS) says the FATCA IDES User Guide has been updated for March 2015 and includes user enhancements and additional instructions. Copies can be downloaded from the IRS websiteimage003.pngThe Federal Reserve Bank of New York has reported gross purchases from February 26th through March 4th of $4,737m worth of agency MBS transactionsimage003.png More than 100 members of European Parliament (MEPs) have signed an open letter to the European Union’s Telecoms Council, urging it to adopt a more relaxed stance towards roaming charges. The Council is looking to extend the “phasing out” of charges until mid-2018, more than two and a half years later than initially laid out in the Roaming III regulation established in 2012. Roaming III, one of Neelie Kroes’ flagship motions in the move towards a single digital market, had previously required the abolishment of all roaming fees by the end of this year. “The Council stance sets up a new pricing mechanism, which will make it much cheaper to use your mobile phone when travelling abroad in the EU,” it said. “Within certain limits to be determined, consumers could make and receive calls, send SMSs and use data services without paying anything extra on top of the domestic fee.” It also suggests limitations under which operators will be able to levy charges against roamers. “Without a strong Telecoms Single Market, the much needed Digital Single Market cannot flourish,” they said, in an open letter to the Council of the European Union. “The European Parliament urged an end to roaming charges by the end of this year (2015). We consider proposed delays by three years (2018), or a suggestion to allow for 5MB without charges per day, to lack ambition. Such outcomes will undoubtedly seriously disappoint citizens. The gap between ending roaming charges, and 5MB per day is immeasurably large.” The open letter to the Telecoms Council concluded with a plea to put an end to roaming charges and clearly define net neutrality, stressing its significance for the future of Europe’s digital economies—Danish dedicated wind company Vestas has placed a seven year €500m eurobond with an interest rate of 2.75%, which the firm says will broaden the firm’s funding structure. The bonds, which will be listed in Luxembourg, will be repaid on March 11th 2022. According to Vestas CFO Marika Fredriksson, this is the first time a "green bond" had been issued by a dedicated wind company—An Taoiseach, Enda Kenny TD; the Minister for Jobs, Enterprise and Innovation, and Clive Bellows, Country Head Ireland at Northern Trust say the bank will expand its operations in Limerick by creating up to 300 new jobs over the next three years. The expansion is supported by the Department of Jobs through IDA Ireland —Despite reduced market volatility in February, total traded volume on the Tradeweb European-listed ETF platform amounted to €7.7bn in the month. This was the platform’s third best performance since launch, only beaten by last October’s €7.9bn and January’s record-breaking €10.7bn volume. According to the firm, there was a clear buying trend across all asset classes on the platform, with “buys” outstripping “sells” by 26 percentage points as a proportion of the overall traded volume. “Buy” requests for equity-based ETFs climbed to 42%, while “sell” requests fell 8 percentage points to 31 per cent compared to the past 12 months. Three of February’s ten most heavily traded ETFs invest in fixed income, offering exposure to government debt and USD-denominated high yield bonds—Global business advisory firm FTI Consulting, Inc says Mark Hunt has joined as senior managing director in the firm’s Forensic & Litigation Consulting practice. Mark will be based in London. As a Senior Forensic Partner with over thirty years’ experience, Mark specialises in financial and regulatory investigations, audit and accounting negligence, expert determinations and accounting disputes. His work has included a number of complex international disputes for both claimants and defendants, as well as acting as an expert on issues relating to complex financial instruments. Mark joins FTI Consulting from BDO, where he led their Financial Services practice, which included conducting FCA/PRA Skilled Persons Reviews. Prior to joining BDO in 2007, Mark was a Partner at KPMG, and he is also a Fellow of the Institute of Chartered Accountants in England and Wales. In his new role, Mark will join the EMEA Financial Advisory Services leadership group, working with Jeannette Lichner, Stephen Kingsley, Andrew Durant and Nick Hourigan to continue building FTI Consulting’s practice— The Straits Times Index (STI) ended +22.24 points higher or +0.66% to 3417.51, taking the year-to-date performance to +1.56%. The FTSE ST Mid Cap Index gained +0.21% while the FTSE ST Small Cap Index declined -0.38%. The top active stocks were SingTel (+1.70%), DBS (+0.98%), Noble (+4.98%), Keppel Land (-0.22%) and Genting Singapore (-2.63). The outperforming sectors today were represented by the FTSE ST Telecommunications Index (+1.52%). The two biggest stocks of the FTSE ST Telecommunications Index are SingTel (+1.70%) and StarHub (unchanged). The underperforming sector was the FTSE ST Health Care Index, which declined -0.55% with Raffles Medical Group’s share price declining -0.51% and Biosensors International Group’s share price declining -0.77%. The three most active Exchange Traded Funds (ETFs) by value today were the STI ETF (+0.59%), iShares USD Asia HY Bond ETF (-0.85%), SPDR Gold Shares (-0.42%). The three most active Real Estate Investment Trusts (REITs) by value were CapitaMall Trust (-0.94%), Ascendas REIT (-0.40%), CapitaCom Trust (+0.28%). The most active index warrants by value today were HSI25000MBeCW150429 (-4.12%), HSI24200MBePW150429 (+0.60%), HSI24400MBeCW150429 (-2.99%). The most active stock warrants by value today were DBS MB eCW150420 (+8.65%), OCBC Bk MBeCW150803 (unchanged), UOB MB eCW150701 (+2.10%).

Russia's new trading infrastructure takes shape

Friday, 03 February 2012
Russia's new trading infrastructure takes shape The Russian trading market is in flux as its key institutions reform and work to improve market efficiencies. In late January MICEX-RTS stock exchange reported that it intends to amend the procedure for delisting of securities, while late last year, President Dmitry Medvedev enacted the Central Securities Depository law, which had been approved by the Duma in mid-November 2011. The signing of the law was a watershed in the evolution of the Russian securities market and helps describe the country’s re-emerging trading infrastructure. http://www.ftseglobalmarkets.com/

The Russian trading market is in flux as its key institutions reform and work to improve market efficiencies. In late January MICEX-RTS stock exchange reported that it intends to amend the procedure for delisting of securities, while late last year, President Dmitry Medvedev enacted the Central Securities Depository law, which had been approved by the Duma in mid-November 2011. The signing of the law was a watershed in the evolution of the Russian securities market and helps describe the country’s re-emerging trading infrastructure.

Russia’s president Dmitry Medvedev signed the country’s so-called CSD law into being in early December last year. The law establishes the particular legal status of the central securities depositary. According to the law the CSD may be any joint stock company which is a non-banking credit organisation appropriately authorised to conduct depositary activities in the securities market and has been acting as a settlement depositary for at least three years. Any entity wishing to become a CSD in the country will have to submit an application to the ministry of finance, a process which is expected to take approximately four months. Interestingly however, it is also prescribed in law that there can only be one CSD in the country. It is expected that there will be at least a full year transition period before the new CSD is fully operational and active.
The next Russian government is expected to adopt a much more proactive strategy to try and attract greater international corporate involvement and more investment in the economy.  As well, it looks likely to continue with internal reforms to encourage the evolution of Moscow as an international financial centre. While reform is high on the government’s agenda right now, anti-Putin demonstrations late last year will ensure that for the first half of 2012 at least, politics and the pace of economic liberalisation will remain at the forefront of assessments of the attractiveness of the Russian equity markets.
Many local brokers view the prospect with optimism. According to a broker the government's response to the recent protests offers encouragement that there will be political reform, while WTO membership at least provides a timeline for companies to become more efficient and competitive”.
Among the plethora of rules in the CSD law, it seems accounts can be opened at the registrars either by the CSD or by beneficial owners. Additionally mandatory reconciliation of the CSD’s records with those of the registrar should be undertaken each time that securities transactions are conducted over the nominee holder account of the CSD; to ensure finality of settlement at the CSD.
The nominee concept for foreign entities is also part of the CSD law and will come into force from the beginning of July this year. ICSDs and foreign CSDs will be able to open accounts directly with the national CSD. Other foreign entities wishing to be nominees will be able to do so via their accounts with local custodians.  
The president also signed another mouthwateringly titled law, Amending Certain Legislative Acts of the Russian Federation in Connection with the Adoption of the Federal Law on the Central Securities Depository.  In more straightforward parlance, this is now referred to as The Satellite Law. This particular law regulates the activities of the professional securities market and ensures compliance with the CSD Law. It covers the types of accounts that can be opened by local depositaries and registrars as well describing some record-keeping features for the safe-keeping of securities of foreign companies operating on behalf of third parties.
This was followed in late January as the newly-merged MICEX-RTS stock exchange reported that it intends to amend its procedures for the delisting of securities. Currently, the removal of securities from the exchange may be initiated by the issuer. Going forward, it looks like the stock exchange will be able to suspend or even forbid a delisting procedure during meetings of its securities markets committee. If a suspension is recommended, investors will be able to leverage a special trading window, for as much as three months, to sell off their securities.  Up to now investors had no such protection.
Additionally a working group on the establishment of the country’s so-called International Financial Centre (IFC) is reportedly considering a number of draft amendments to local regulations covering the listing of securities and additional requirements for delisting.  According to a release issued by Deutsche Bank.:“  The amendments envisage that the delisting of securities undertaken by a stock exchange due to violations by an issuer or issuer’s agent will result in the introduction of a special six month trading window for these securities and their admission to a ‘non-listed’ securities list.  Significantly for investors, shareholders will be able to claim against the issuer’s management team for losses resulting from the de-listing.

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