Step-by-step integration with the international capital markets

Clea McElwain
August 13, 2021

Improving the image and confidence in the Moldovan financial market is paramount for becoming a full member of the global investment community and benefit fully from the opportunities this status provides. Membership in an international organization is a first step taken towards placing Moldova on the map of reliable capital markets considered for investing, thus opening up the local market and make it more attractive to foreign players.

As of July 1, 2021, the Central Securities Depository (CSD) of Moldova became a full member of the European Central Securities Depositories Association (ECSDA), thus gaining easy access to information and cooperation with CSDs from 35 European countries. Adhering to this reputable organization was one of the recommendations made by FSTA experts in a comprehensive roadmap for the Moldova CSD, developed early this year. The document, aimed at helping the Moldova CSD to set up links with international central securities depositories comprises a gap analysis of the current CSD set-up, an access strategy to the international securities market, as well as recommendations on participation in capital market organizations.

FSTA is confident that the CSD’s participation in ECSDA would be an important milestone and will be a key trigger in the opening up of the Moldovan financial market. Also, adhering to ECSDA is one of the most effective ways to harmonize internal regulation with international standards and leading practices.

In addition, joining this international organization will improve the image of the Moldovan capital market and will constitute an important signal for foreign investors that the Moldovan market is safe for investments.

Furthermore, the CSD’s accession to the European CSDs community will also represent an important intermediary step in CSD’s long-term objective in building up interconnections with other CSDs, at a European and afterward, at an international level, and will help Moldova to further integrate with the European and international markets. This, in turn, will facilitate access to the Moldovan securities market for foreign investors but also will allow the local investors to easily trade and settle transactions with international counterparties on foreign securities.

Alexandru Savva, the director of the Moldova Central Securities Depository

Alexandru Savva, the CSD’s Director says that the institution he represents is strongly committed to following all recommendations made by FSTA experts as they are derived from best international practices. “The extensive analysis conducted by FSTA experts helped us identifying existing shortcomings as well as measures to address them. The valuable recommendations contained in the developed Roadmap provided a significant impetus in advancing our access to the international financial community. The ECSDA membership status will give us access to know-how that will be employed to enhance the CSD’s capacities and improve its services. We are eager to harness all the opportunities given by this membership as we believe that this cooperation will pave the way to a future interconnection with other European CSDs.”, Alexandru Savva added.

ECSDA was founded in 1997 in Madrid and currently has over 40 members – central depositaries from UK, Germany, Switzerland, France, Belgium, Denmark, Romania, and other countries. Headquartered in Brussels, Belgium, the association provides an arena for European CSDs to exchange views and information in the field of pre-settlement, settlement and custody, transfer of know-how and best practices among its members, as well as promoting a constructive dialogue between the CSDs, relevant authorities and other interested parties in order to establish an optimal regulatory framework for clearing and settlement.