Deutsche Börse’s Clearstream is providing easier access to the Romanian capital markets for the international investors by adding a new domestic link to enable settlement and safekeeping of Romanian equities.
The international central securities depositary (ICSD) will connect local Romanian Romanian central securities depository (CSD) Depozitarul Central to its network on July 1.
Clearstream has tapped BRD Group Société Générale as its local depository partner.
“Being able to enter emerging markets via an internationally established post-trade environment is very attractive to investors all over the world,” Jan Willems, head of global markets at Clearstream, said on the move. “Clearstream now making Romanian local equities available to international investors will add to the market’s attractiveness, increasing demand and thus liquidity of Romanian equities. The local market will benefit from a wider range of sources of funding, contributing to its further development.”
Reducing the cost of foreign investments
The announcement also highlighted that the move would enable settlement and safekeeping of all equities denominated in Romanian leu (RON) through Clearstream’s international infrastructure.
Clearstream was already present in the Romanian market since 2010 and was offering government and municipal bonds. The platform also added local corporate bonds to its ICSD infrastructure last month.
“This has been a requirement that we have heard more and more often in recent years from foreign investors but also from Romanian issuers, especially after the inclusion of Romania on the watch-list for promotion to the secondary emerging market status by one of the leading global index providers, FTSE Russell,” Silvia Buicanescu, CEO at Depozitarul Central, said.
“The increase in investors’ interest this partnership is about to bring, coupled with new listings on Bucharest Stock Exchange and the upcoming market status upgrade, will be conducive to healthy and sustainable growth of Romanian capital markets and, as a consequence, to the consolidation of alternative financing channels for the Romanian economy,” Claudiu Cercel, deputy CEO at BRD Groupe Société Générale in charge of financial markets, added.