Euroclear and Clearstream halt settlements for Russian securities
02 March 2022 Europe
Image: ako photography
Euroclear Bank and Clearstream are no longer accepting Russian ruble (RUB) as a settlement currency on their international central securities depositories in response to the Russian invasion of Ukraine.
Euroclear announced yesterday (1 March) that it would no longer accept payment settlement instructions in Russian domestic securities.
In addition, Euroclear clients are no longer allowed to transfer any RUB to ING Bank, Euroclear鈥檚 cash correspondent in Moscow.
Euroclear urged its clients to review their instructions already in the system to ensure that they are compliant with sanction regulations.
To the extent legally permissible, Euroclear added that clients 鈥渟hould wire out any remaining long balances in RUB as soon as possible鈥�.
VTB Bank, Russia鈥檚 second-largest bank after Sberbank, has already been disabled as Euroclear鈥檚 cash correspondent.
Clearstream has also told Securities 麻豆影视传媒 Times that settlement in certain security codes is no longer possible on its platform. It is also no longer possible for certain entities to distribute new instruments on Clearstream.
The Deutsche B枚rse-owned post-trade service also said RUB is no longer an eligible settlement currency. In addition, domestic and internal delivery versus payment settlement in RUB is no longer possible.
Russia鈥檚 National Settlement Depository (NSD) has blocked all securities held on Clearstream Banking鈥檚 foreign nominee holder account until further notice.
Clearstream Banking understands that NSD is required to suspend payments on securities issued by Russian entities to foreign legal entities and individuals. NSD will not credit such proceeds to Clearstream Banking鈥檚 account until further notice.
The news follows SWIFT鈥檚 decision to block some Russian banks from its international payments system.
SWIFT鈥檚 change in operations comes after financial sanctions imposed by the west, including blocking Russia's central bank from international operations.
The European Commission released a statement on 26 February, outlining: 鈥淲e, the leaders of the European Commission, France, Germany, Italy, the United Kingdom, Canada, and the United States condemn Putin's war of choice and attacks on the sovereign nation and people of Ukraine.鈥�
Euroclear announced yesterday (1 March) that it would no longer accept payment settlement instructions in Russian domestic securities.
In addition, Euroclear clients are no longer allowed to transfer any RUB to ING Bank, Euroclear鈥檚 cash correspondent in Moscow.
Euroclear urged its clients to review their instructions already in the system to ensure that they are compliant with sanction regulations.
To the extent legally permissible, Euroclear added that clients 鈥渟hould wire out any remaining long balances in RUB as soon as possible鈥�.
VTB Bank, Russia鈥檚 second-largest bank after Sberbank, has already been disabled as Euroclear鈥檚 cash correspondent.
Clearstream has also told Securities 麻豆影视传媒 Times that settlement in certain security codes is no longer possible on its platform. It is also no longer possible for certain entities to distribute new instruments on Clearstream.
The Deutsche B枚rse-owned post-trade service also said RUB is no longer an eligible settlement currency. In addition, domestic and internal delivery versus payment settlement in RUB is no longer possible.
Russia鈥檚 National Settlement Depository (NSD) has blocked all securities held on Clearstream Banking鈥檚 foreign nominee holder account until further notice.
Clearstream Banking understands that NSD is required to suspend payments on securities issued by Russian entities to foreign legal entities and individuals. NSD will not credit such proceeds to Clearstream Banking鈥檚 account until further notice.
The news follows SWIFT鈥檚 decision to block some Russian banks from its international payments system.
SWIFT鈥檚 change in operations comes after financial sanctions imposed by the west, including blocking Russia's central bank from international operations.
The European Commission released a statement on 26 February, outlining: 鈥淲e, the leaders of the European Commission, France, Germany, Italy, the United Kingdom, Canada, and the United States condemn Putin's war of choice and attacks on the sovereign nation and people of Ukraine.鈥�
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