Earlier non-banks could only settle OTC trades in foreign currency through NSD accounts.

"The new option was our response to the existing domestic stock market demands. For instance, in the past three years a number of issuers floated shares in USD", says the release. In February, Vnesheconombank placed a $500mn domestic bond float for the first time, which was oversubscribed three times.

Vnesheconombank and the Moscow Exchange initiated the lifting of currency bond transaction limits for non-banks. Proposals were forwarded to NSD and the Central Bank.

According to the release, the need for change is highlighted by the upcoming licensing of NSD as the Russian Central Depositary and further measures to liberalize access to the Russian market.

The volume of foreign currency bonds registered in Russia totals $4,36bn.

"Along with currency swaps that are developed by the Russian stock exchange, currency bonds offer new possibilities to all types of investors in the Russian stock market", the release quotes Vnesheconombank Deputy Chairman Alexander Ivanov.

Moscow Exchange Primary Market Development MD Ekaterina Novokreshchenykh says the exchange, being the key infrastructure hub, must comply with market requirements and offer new opportunities to debt market participants. "We expect to draw Russian investors’ attention to foreign currency bonds and create a liquid secondary market”, she said.

Trading infrastructure, Project Group №1