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. Last Updated: 07/27/2016

Uneximbank Depository Goes Public on Results

Uneximbank officials became the first in Russia's nascent depositaries market to release performance figures, claiming Wednesday that their number of corporate clients increased more than 10 times in 1997.

Recently, Uneximbank's depository began working with the Russian Trading System, and bank officials are seeking agreements with other venues such as the Moscow Stock Exchange, currently served by the Depository Settlement Union.

Mikhail Alexeyev, the deputy of chairman of the board at Uneximbank, said news of a possible partnership with the Moscow Stock Exchange could be released soon.

"We are negotiating with different trading places," Alexeyev said. "The answer to the question [concerning a Moscow Stock Exchange partnership] will be heard in the near future, maybe next week."

Releasing results for the first nine months of the year, Alexeyev said the number of organizations which use the bank's depository, which opened to the market in early 1995, rose from 39 last December to 449.

The number of operations increased from 2,209 in March to 23,450 in September, he said.

Alexeyev said the volume of securities held in custody by Uneximbank jumped from $1 billion in January to $9.5 billion in September.

According to a Uneximbank report, the depository's most likely rival in the future, the Depository Clearing Company, handles a volume of $200 million in securities.

But Mikhail Lelyavsky, president of DCC, said the comparison is unfair because in addition to equities, the Uneximbank depository holds government treasury bills, savings bonds, farm bonds and, most importantly, veksels issued by the bank's subsidiary MFK Bank.

"MFK may issue $1 billion in veksels," Lelyavsky said, referring to the corporate IOUs which grew up as a way for companies to cover their inter-enterprise debts.

According to Alexeyev, Uneximbank officials have steered clear of the battle between the Central Bank and the Federal Securities Commission for control over the developing depositary market, waiting instead for the political dust to settle and a concrete project to appear.

"We will support all constructive initiatives which have a real business basis instead of political stuffing," Alexeyev said.