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. Last Updated: 07/27/2016

CSFB Signs With Stock Settling Firm

Credit Suisse First Boston has signed up with a securities settling system run by the Depository Clearing Company, one of several firms competing to offer stock settlement in the Russian market, a joint statement said Thursday.

CSFB is one of the major players on the Russian securities market, and its decision to work with DCC is an important step in developing Russia's fragmented settlements and clearing infrastructure.

"Although there will be no obligations on our clients to transfer their holdings to the DCC, we believe it is essential for the success of the Russian securities market that an effective settlement process is made available to investors," CSFB's head of custody Nicholas Orchard said in the statement.

DCC president Mikhail Lelyavsky said he hoped the deal would herald others, reducing costs for the holders of Russian stock.

"Currently there is no centralized system for the transfer and confirmation of ownership in Russian shares, nor a system for keeping shareholders' registers, and we hope our agreement with CSFB will lead to further similar agreements," he said.

DCC won a leading position this month by signing an agreement on creating a unified system with the Russian Trading System, the country's electronic, over-the-counter market.

RTS members can currently choose to clear deals through Uneximbank's depository, the Depository Clearing Union, or the DCC. But many deals are done over the telephone and settled directly between the parties involved.

President Boris Yeltsin ordered the creation of a unified system in August, but much detail remains to be worked out, and recent sharp falls in Russian share prices have heightened concerns that small firms might default on deals.