SPB Exchange to create a secure chain of custody for Hong Kong securities by the end of 2023

SPB Exchange plans by the end of 2023 to start using depository accounts in a friendly jurisdiction for the safe storage of securities, in particular shares of companies listed on the Hong Kong Stock Exchange. This was announced by the head of the trading platform Roman Goryunov.

“We are building an infrastructure for storing securities that is not connected with unfriendly countries. As you understand, according to common sense, this is a jurisdiction associated with Hong Kong. The launch date is before the end of the year,” said Mr. Goryunov on the sidelines of the Russian Stock Market 2023 conference. His words lead RBC.

Answering a question about the possible plans of the SPB Exchange to create a separate legal entity for storing securities, the head of the trading floor said: “No, why, for now we just use accounts opened by other participants in a friendly jurisdiction: in brokers, international banks.”

By the beginning of 2023, the number of available Hong Kong securities on the St. Petersburg Exchange was 115. However, from April 1, the Bank of Russia ordered brokers to warn unqualified investors about the risks of blocking securities if they are accounted for by unfriendly depositories. Since March 21, the regulator has suspended admission to organized trading on the SPB Exchange of new foreign securities available to unqualified investors if they are accounted for in a depository from an unfriendly country.

In March, the volume of trading in foreign securities on the St. Petersburg Exchange fell to a minimum since October last year. The trading volume for the reporting period amounted to only $2.65 billion, which is 1.8 times lower than in February 2023 ($4.69 billion). Market participants associated the drop in indicators with the departure of active investors.

For more details, see Kommersant’s article “Foreign securities did not withstand the sanctions.”

Milena Kostereva


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