Latvian Central Depository Enables Securities Settlement also in Russian Rubles

04.01.2012 RIG

Riga, January 4, 2012 – Latvian Central Depository has enabled the settlement of securities transactions executed in the Latvian securities market in one more currency, Russian rubles. 

From now on, Latvian Central Depository will enter on its books also corporate securities issued in Russian rubles. Buy and sell transactions for these securities will also be settled in Russian rubles, the same being true for servicing corporate actions, such as coupon payments for debt securities, principal redemption etc.

Latvian Central Depository has already registered on its books the first bonds issued in Russian rubles with total issue value 230 million Russian rubles (LVL 3.9 million ).

Up to now, Latvian Central Depository used to provide securities settlement services in Latvian lats (LVL), Euros (EUR) and US dollars (USD).

Indars Aščuks, Chairman of the Management Board, Latvian Central Depository, comments: „Despite the concerns over the global financial stability, the Latvian securities market witnesses demand for new services. If, in the future, our clients will need to settle securities in any other international currency, we are sure to expand the range of services and enable the registration and settlement for financial instruments issued also in other currencies.”

As to companies, issuing securities in Russian rubles allows raising financing in a currency they are comfortable with: if a company needs Russian rubles for its current operations, there is no need for converting the funds raised in the market, hence no currency exchange costs.

Settlement volumes at the Latvian Central Depository in 2011 in the breakdown by currency are as follows: Latvian lats 616 million LVL, Euros 69 million EUR, US dollars 0.3 million USD.

About the Latvian Central Depository

Latvian Central Depository has the status of National securities depository, and performs the functions of central bank for securities: it provides electronic accounting, safe-keeping and clearing and settlement for all Latvia-listed securities as well as for other securities registered with the LCD. Latvian Central Depository is an experienced national level registrar of electronic registers – in partnership with the State Social Insurance Agency it is maintaining the register of individual accounts for the second pillar of Latvian pension system. Latvian Central Depository also runs the Central share register for securities that once were exchanged for privatization vouchers and have not been transferred to securities accounts in banks. Latvian Central Depository manages shareholder registers for private joint stock companies, thus assuring high security for shareholders’ title. Latvian Central Depository is a daughter company of NASDAQ OMX Riga (the former Riga Stock Exchange). Read more: www.depozitarijs.lv