Securities Services

ING CB – the leading custodian on the Russian market 

ING CB has always been one of the most prominent custodians in Russia offering a comprehensive range of custody services. Currently, it is by far the largest custodian with over USD 103 billion of assets under custody (as at the end of February 2010) which services more than 700 foreign and domestic clients. The clientele of ING CB consists of major Global Custodians and worldwide financial institutions present in the market, as well as the largest local brokers and companies dealing with securities. Due to the number and variety of ING CB’s clientele, our clients are able to benefit from settling considerable amount of its trades internally on ING CB’s books, which allow for time-saving and cost reduction.

ING CB has been providing custody services since 1995, constantly increasing market share, assets under custody and client base. On December 16, 1996, ING CB was granted an Exemption from Rule 17f-5 of U.S. Investment Company Act of 1940. ING CB is an eligible foreign custodian according to the definition given in Chapter 9 of Release 18 of the FSA Rulebook.

Currently ING CB has 17f-5 agreements in place with most registrars, who cover more than 2’500 issuers, and holds under custody securities of over 700 Russian issuers, thus providing wide investment opportunities for its clients in general and in particular to U.S. investors, who are obliged to comply with the requirements of U.S. legislation.

ING CB is one of the first custodians on the market which obtained the permanent (termless) depository license (#177-03728-000100 dated December 7, 2000) from the Federal Financial Market Service (FFMS) (earlier - the Federal Commission for Securities Market), in lieu of the previous limited term depository license from December 23, 1997.

The staff of ING CB is made up of Russian graduates with advanced degrees in finance, economics and/or law, as well as Western-trained senior management personnel. There is currently a staff of more than 80 working in Securities Services and other directly related departments: Securities Services Front Office, Middle Office and Back Office which include Clients Settlements Group, Corporate Actions & Dividends Group, Re-registration Group and Static Data & Reporting Group.

For many years ING CB has been recognised as the leading custodian in the market both by clients and by industry experts, which highlights ING CB’s achievements and eminent commitment to its business on the Russian market.

ING CB Awards

Commended rating by Global Custodian in 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009;

Top rating by Global Custodian in 2007, 2008 and 2009 in the category “Leading clients”;

The best Sub-custodian by Global Finance in 2003, 2004, 2005, 2006;

The best Sub-custodian in central and eastern Europe by ICFA in 2004, 2005, 2006, 2007, 2008, 2009;

The highest ratings by Global Investor in 2005; ‘Best Russian Sub-custodian of the Decade’ award in 2006; 'Winner Multi Markets Europe' award in 2010.

Lobbying activity

ING CB actively participates in discussions, committees, associations and working groups, which influence local market practices.

ING is a member of:

- The Committee of Major Participants of CJSC "Depository Clearing Company" (DCC);

- NDC’s shareholder, member of its Board of Directors, participant of Committee for Technological Policy and Development and the Committee for Innovations and Products;

- The Association of Russian Banks;

- The National Association of the Securities Market Participants (NAUFOR);

- The National Securities Market Association (NSMA);

- The National Committee on Securities Lending (organized by NSMA);

- The Banking Committee of the Association of European Business in the Russian Federation;

- The National Securities Market Practice Group (NSMPG) and the Committee of Russian National S.W.I.F.T. Association (RosSWIFT).

ING CB participates in various other groups and committees on the market, as well as in market discussions and active lobbying of the infrastructure, which gives an opportunity to speak on behalf of its foreign clients and lobby their interests as well as to express their opinion on the needs for the market and infrastructure development. Thus ING CB is able to address its clients` concerns and to influence the development of the local securities market infrastructure in order to bring the European market practices onto the Russian market and eliminate existing deficiencies.

Recent Initiatives of ING CB:

Apart from regular maintenance of business and client relationship, one of the main goals of ING CB Securities Services is to pro-actively work on its development and innovation in order to best meet clients’ needs and requirements, in particular to analyse and realize further development potential, investigate new opportunities and ensure their practical implementation within the organization.

Below is the list of products and services that have been implemented recently:

-  Assistance with assignment of ISIN/CFI codes;

- Enrichment of the range of DVP settlement mechanisms via DCC with settlement vs. Russian Roubles;

- Internal DVP in USD or EUR on the books of ING CB;

- Dividends conversion without opening direct cash accounts;

- Launch of several settlement arrangements with settlement depositaries and major custodians on the market. Such solutions are aimed at significant reduction of time required for the settlement and transaction costs:

        - Speedy Settlement Scheme (SSS) with NDC; 

        - Enhanced Speedy Settlement Scheme (ESSS) with DCC; 

         - Settlement bridge ING-Citi;

         - Settlement bridge ING-Deutsche Bank.

ING CB renders the widest range of services which consist of traditional custody services and value added services.

Contacts of ING CB Securities Services:

Phone: +7 (495) 755-5400

E-mail: INGE_Securities_Services@ingbank.com