SCOPE, STRUCTURE, OWNERSHIP, CAPITAL, REGULATION AND AUDIT

The purpose of this section is to understand the ownership structure and financial strength of your institution, as well as the level of regulatory and operational supervision to which it is subject.

1. Rule 17f-7, by reference to Rule 17f-4, requires that, for a depository to be eligible to hold securities of U.S. registered investment companies (such depositories hereinafter referred to as “Eligible Securities Depositories”), the depository must be a “system for the central handling of securities where all securities of any particular class or series of any issuer deposited within the system are treated as fungible and may be transferred or pledged by bookkeeping entry without physical delivery of the securities.”
Are all securities of a particular class or series of any issuer that are deposited in your institution treated as fungible, and can they be transferred or pledged by bookkeeping entry without physical delivery of the securities?
Yes
2. Rule 17f-7 also requires that an Eligible Securities Depository “acts as or operates a system for the central handling of securities or equivalent book-entries in the country where it is incorporated,” or “acts as or operates a transnational system for the central handling of securities or equivalent book-entries.” Does your institution: (Choose all that apply.)
Act as or operate a system for the central handling of securities or equivalent book-entries in the country where it is incorporated? (please answer 2b)
2b. Please specify the types of securities for which you act as or operate a system for the central handling of securities or equivalent book-entries:
All types of Russian securities, including all Russian debt securities and all Russian equity securities.
3. What type of legal entity is the institution? (Choose all that apply.)
Private Company, Other (please answer 3a)
3a. Please explain:
Non-Banking Credit Organization Closed Joint-Stock Company.
4. Is the institution operated as a "for profit" or a "not for profit" organization?
For profit
5. Please provide the names of the owners and their ownership interest percentages.
1) Moscow Interbank Currency Exchange (MICEX) - 99.99729%; 2) Others - 0.00271%.
6. Please answer the following: 6a. What is the date of establishment of the depository?
27/Jun/1996
6b. What is the date that the depository's operations began?
30/Mar/1998
7. Under what regulation or statute is the depository established and governed?
Federal Law No. 395-1 On Banks and Banking Activity dated December 2, 1990; FCSM Regulation on Depository Activities in the Russian Federation No. 36 dated October 16, 1997; Federal Law No. 39-fz "On The Securities Market" dated April 22, 1996; Federal Law No. 208-fz "On Joint-Stock Companies" approved on November 24, 1995; Federal Law No. 7-fz "On Clearing and Clearing Activities" dated February 7, 2011.
7a. Is the regulation or statute electronically available?
Yes (please answer 7b)
7b. If regulation or statute is electronically available, please supply web address(es) here or upload document(s) in question 7c.
Documents in Russian: http://base.consultant.ru/cons/cgi/online.cgi?req=doc;base=LAW;n=116940 http://base.consultant.ru/cons/cgi/online.cgi?req=doc;base=LAW;n=16741 http://base.consultant.ru/cons/cgi/online.cgi?req=doc;base=LAW;n=122476 http://base.consultant.ru/cons/cgi/online.cgi?req=doc;base=LAW;n=122369 http://base.consultant.ru/cons/cgi/online.cgi?req=doc;base=LAW;n=121920 English versions are available upon request.
7d. Please provide details of the structure and composition of your Board together with their industry experience and responsibilities in governing the depository. What are the qualifications to become a board member?
Candidates to NSD Supervisory Board have to meet requirements of the Federal Law No.395-1 On Banks and Banking Activity, and must have no record of convictions in the economic sphere or against governmental authorities. Candidates must not have performed functions of individual executive body or participated in collegial executive body at the moment a license was withdrawn or adopted a decision to introduce bankruptcy proceedings, if less than three years have passed from the moment of such withdrawal or completion of the bankruptcy proceedings.
7e. What are the election procedures?
The Board members are elected by the General Meeting of Shareholders in accordance with the Federal Law On Joint-Stock Companies and the NSD Charter by cumulative voting. The number of board members is determined by the General Meeting of Shareholders. Candidates who get the maximum number of votes are considered as elected board members. The Board has to consist of at least 15 members and the total number of Board members has to be an odd number.
7f. What is the maximum length of time a board member can serve?
Board members are elected for a period until the next Annual General Meeting of Shareholders. According to the Shareholders Agreement concluded by and among NSD Shareholders: “Reelection is mandatory in five years for Independent Board members, and in three years - for Board members that are representatives of NSD services users or minority shareholders. Annual reelection is possible for Board members being representatives of key NSD services users that are not Shareholders, subject to the changes in separate services users' interest in NSD business.”
7h. Who is responsible for regulating the board members?
The General Meeting of Shareholders.
7g. How are the voting powers distributed amongst the board members (i.e. does each board member have one vote or do certain members have additional voting power)?
Every member of the Board carries one vote at meetings of the Board. In the case of an even distribution of votes on any issue, the Chairman of the Board has a casting vote.
8. Rule 17f-7 requires that an Eligible Securities Depository “is regulated by a foreign financial regulatory authority as defined under section 2(a)(50) of the Act”, with section 2(a)(50) establishing that “'foreign financial regulatory authority' means any (A) foreign securities authority, (B) other governmental body or foreign equivalent of a self-regulatory organization empowered by a foreign government to administer or enforce its laws relating to the regulation of fiduciaries, trusts, commercial lending, insurance, trading in contracts of sale of a commodity for future delivery, or other instruments traded on or subject to the rules of a contract market, board of trade or foreign equivalent, or other financial activities, or (C) membership organization a function of which is to regulate the participation of its members in activities listed above.”
Who regulates the activities of the depository? (Choose all that apply.)
A governmental body or regulatory organization empowered to administer or enforce laws related to securities matters.
9. Please provide the name of regulatory authority(ies) identified in question 8:
The Federal Service for Financial Markets (the FSFM); the Central Bank of the Russian Federation (the CBR).
10. Rule 17f-7 requires that an Eligible Securities Depository “is subject to periodic examination by regulatory authorities or independent accountants.” Is the depository subject to periodic examination by: (Choose all that apply.)
Regulatory authorities?, Independent accountants?
11. What enforcement actions are available to the regulatory authority(ies) for breach of applicable statute or regulatory requirements? (Choose all that apply.) Name of Authority #1 (please answer 11a):
The FSFM.
11a.
Fines, Suspension of depository activities., Termination of depository activities., Other (please answer 11b)
11b. Please explain:
The FSFM can (1) issue instructions to eliminate violations of Federal Laws; (2) submit materials to law-enforcement authorities; and (3) file actions in court.
Name of Authority #2 (please answer 11c):
The CBR.
11c.
Other (please answer 11d)
11d. Please explain:
The CBR regulates banking activities of NSD, which is considered to be a non-banking credit organization. The CBR can impose restrictions on, suspend, or even terminate NSD's banking activity (by revoking its banking license). Enforcement actions available to the CBR include: issuing instructions to eliminate violations of Federal Laws and the CBR's regulations; changing the official ratio, submitting materials to law-enforcement authorities and filing actions in court, appointing a temporary administrator, ordering that the top management be replaced, etc.
12. Has there been any use of such enforcement actions in the last three years?
Other (please answer 12a)
12a. If yes or other, please explain:
There has been no enforcement action against NSD. However, according to its annual reports, the FSFM initiated 17,238 administrative cases for violations in the financial markets sphere and imposed RUB 3.7 billion (more than USD 120 million) of administrative fines during the period ranging from 2009 to the first half of 2011 .
Capital

13. Are annual financial statements publicly disclosed?
Yes (please answer 13a)
13a. If yes, the AGC requests a copy of the institution's annual report. Is the annual report available electronically?
Yes (please answer 13b)
13b. If yes, please upload the document(s) here or insert web link(s) in question 13d:	NSD Annual Report 2010
13c. If more than one document for 13b, please upload the additional document here:	NSD Financial Statements and Auditors' Report in accordance with International Financial Reporting Standards
13d. Please insert web link(s) for 13b here:
http://www.nsd.ru/common/img/uploaded/files/annreps/nsd_annrep2010_en.pdf http://www.nsd.ru/common/img/uploaded/files/annreps/nsd_ifrs_fs_2010.pdf
Internal Audit

14. Is an internal audit undertaken in your depository?
Yes (please answer 14a)
14a. If yes, what areas does the audit cover (financials, operations, etc.) and which department in your depository handles it?
The Internal Control Service performs the audit of all NSD activities. The Internal Control Service consists of the Department of Internal Control of Professional Securities Market Participant and the Department of Internal Audit of Credit Organization. The Department of Internal Control of Professional Securities Market Participant controls the compliance of NSD activities with the securities market legislation of the Russian Federation. The Department of Internal Audit of Credit Organization is responsible for the compliance of NSD's activities with the requirements of the CBR.
*Question numbers 14b, 14c, 14d and 14f have been modified. Thus, your answers from last year have not been populated for these questions.* 14b. Please list the date of your last internal audit and the period that the audit covered:
01/Jan/2011
to
30/Sep/2011
14c. How frequently does the internal audit occur? (Choose one.)
Two or more times a year (please answer 14e)
14e. Are the results of the internal audit publicly available?
No
14f. Please select the statement that most accurately characterizes the results of the last internal audit: (Choose one.)
No material exceptions found.
15. Is a financial audit performed by an Audit Firm, Regulatory Authority, or other external party?
Yes (please answer 15a)
15a. If yes, please state the name(s) of the entity(ies) who perform the financial audit.
ZAO Deloitte & Touche CIS.
*Question numbers 15b, 15c, 15d, 15e and 15f have been modified. Thus, your answers from last year have not been populated for these questions.* 15b. Please list the date of your last financial audit performed by an Audit Firm, Regulatory Authority, or other external party:
02/Jun/2011
15c. Please list the period that the audit covered:
01/Jan/2010
to
31/Dec/2010
15d. How frequently does the financial audit occur? (Choose one.)
Annually (please answer 15f)
15f. Are the results of the financial audit publicly available?
Yes
15g. Please select the statement that most accurately characterizes the results of the last financial audit: (Choose one.)
No material exceptions found.
16. Is an operational audit performed by an Audit Firm, Regulatory Authority, or other external party?
Yes (please answer 16a)
16a. If yes, please state the name(s) of the entity(ies) who perform the operational audit.
ZAO Deloitte & Touche CIS.
*Question numbers 16b, 16c, 16e, 16f and 16g have been modified. Thus, your answers from last year have not been populated for these questions.* 16b. Please list the date of your last operational audit performed by an Audit Firm, Regulatory Authority, or other external party:
30/Apr/2011
16c. Please list the period that the audit covered:
01/Jan/2010
to
31/Dec/2010
16d. How frequently does the operational audit occur? (Choose one.)
Annually (please answer 16f)
16f. Are the results of the operational audit publicly available?
No
16g. Please select the statement that most accurately characterizes the results of the last operational audit: (Choose one.)
No material exceptions found.

PARTICIPANTS AND PARTICIPATION

The purpose of this section is to understand issues relating to participation in the depository, including eligibility requirements, conditions of participation, and supervision of participants.

17. What types of entities are eligible to become participants and how many of each type are there currently? (Choose all that apply.)
Banks (please answer 17a), Brokers (please answer 17e), Foreign Institutions (please answer 17m), Other entities (please answer 17q)
17a. How many Bank participants are there currently? (then please answer 17b)
There were 651 credit organizations and 4 non-resident banks as of October 1, 2011.
17b. Please select the features included in the eligibility requirements for Banks. (Choose all that apply.)
Other (please answer 17d)
17d. Please explain:
The list of documents to be supplied in order to become a participant is available in Russian at http://www.nsd.ru/ru/documents/calc/forms/#index.php?22=342. The English translation is available upon request.
17e. How many Broker participants are there currently? (then please answer 17f)
There were 287 investment/broker companies as of October 1, 2011.
17f. Please select the features included in the eligibility requirements for Brokers. (Choose all that apply.)
Other (please answer 17h)
17h. If other, please explain:
The list of documents to be supplied in order to become a participant is available in Russian at http://www.nsd.ru/ru/documents/calc/forms/#index.php?22=342. The English translation is available upon request.
17m. How many Foreign Institution participants are there currently?
There were 13 Foreign Institution participants as of October 1, 2011.
17n. Please select the features included in the eligibility requirements for Foreign Institution participants. (Choose all that apply.)
Other (please answer 17p)
17o. Where can a description of the specific eligibility requirements for Foreign Institution participants be found?
upon request, by telephone
17p. If other, please explain:
The list of documents to be supplied in order to become a participant is available in Russian at www.nsd.ru/ru/documents/calc/forms/#index.php?22=342. The English translation is available upon request.
17q. If you have selected "Other entities" above, please explain:
Market participants including investment companies, insurance companies, management companies, specialized depositories, depositories
17r. Indicate how many "Other entities" are currently participants?
There were 1,085 "Other entities" that were participants as of October 1, 2011.
17s. Please select the features included in the eligibility requirements for the participants referred to above as "Other entities". (Choose all that apply.)
Other (please answer 17u)
17t. Where can a description of the specific eligibility requirements for participants described above as "Other entities" be found?
upon request to NSD, by telephone
17u. If other, please explain:
The list of documents to be supplied in order to become a participant is available in Russian at www.nsd.ru/ru/documents/calc/forms/#index.php?22=342. The English translation is available upon request.
18. Are participants required to contribute capital to the depository that would result in ownership of the depository?
No
18a. If yes, what fixed amount is required or what formula is used to determine the appropriate contribution level?

18b. If other, please explain:
Our customers are not required contributing capital to the depository when opening an account. Our members of the Partnership contribute capital to become ones.
19. Are prospective participants subject to an initial review and approval process regarding compliance with eligibility requirements?
Yes
19a. If other, please explain:

Conditions of Participation

20. What governs the relationship between the depository and the participants? (Choose all that apply.)
Relevant law and regulation, Standard participation contract, Established terms and conditions of participation, Rules of the depository
20a. Please explain:

21. Rule 17f-7 requires that an Eligible Securities Depository “holds assets for the custodian that participates in the system on behalf of the Fund under safekeeping conditions no less favorable that the conditions that apply to other participants.”
Please confirm that assets of foreign investors held by custodians as participants in the depository are held under safekeeping conditions no less favorable than the conditions that apply to other participants.
Yes (please answer 21b)
21a. If no, other or not applicable, please explain:

*Question number 21b has been modified. Thus, your answer from last year has not been populated for this question.* 21b. Please confirm the basis for the arrangements you have in place to ensure that the assets you hold for custodians receive the same level of safekeeping protection as the assets held for other categories of participants. (Choose all that apply.)
Relevant Law and Regulation, Standard participation contract, Established terms and conditions of participation, Rules of the depository
21c. Please explain:

22. How does the depository notify participants of material changes to the conditions of participation? (Choose all that apply.)
By e-mail, By public announcement, By press release, Other (please answer 22a)
22a. Please explain:
Changes to operational procedures are published on the web-site at www.nsd.ru and communicated via the EDI system (LUCH software).
Governance of Participants

23. Who enforces compliance with the depository's conditions of participation? (Choose all that apply.)
The depository, The depository's regulator
23a. Please explain:

24. What enforcement actions are available to the enforcement authority? (Choose all that apply.)
Fines, Restrictions on participation, Suspension of participation, Termination of participation
24a. Please explain:

25. Has there been any such enforcement actions in the last three years?
Yes (please answer 25a)
25a. If yes, please explain, including information relative to any suspensions of depository participants:
NSD imposes restrictions and suspends participation (e.g. blocks accounts) in the event a client's license is withdrawn by the enforcement authority, and in case of non-payment of fee or termination of contract for NSD services.
25b. If other, please explain:

DEPOSITORY FUNCTIONALITY AND SERVICES; USE OF AGENTS

Certain functionalities and services reduce risk to an investor if provided in an efficient manner. The purpose of this section is to identify those functionalities that may potentially be offered by depositories and clearing systems around the world, and ascertain whether they are offered by your institution.

26. For which of the following security types do you serve as a depository or clearing system? (Choose all that apply.)
Government securities, Equities, Corporate bonds, Corporate money market instruments, Others (please answer 26a)
26a. Please name the other security types:
Municipal bonds, Units of Investment Funds (UIFs), Eurobonds, Depository Receipts
27. Is the use of the depository in your market compulsory by law or compulsory by market practice for the settlement or safekeeping of all instrument types in your market (e.g. equities, government securities, corporate bonds, money market instruments, warrants, derivatives etc). (Choose all that apply.)
Yes by law for settlement, but not for all instrument types (please answer 27a), Yes by law for safekeeping, but not for all instrument types (please answer 27b), Yes by market practice for settlement, but not for all instrument types (please answer 27a), Yes by market practice for safekeeping, but not for all instrument types (please answer 27b)
27a. Please list the instrument types for which it is not compulsory by law to: (i)settle in your depository
All instrument types except government securities.
(ii)safekeep in your depository:
All types except government securities.
27b. Please list the instrument types for which it is not compulsory by market practice to: (i)settle in your depository
Equities, corporate and municipal bonds, UIFs, Eurobonds.
(ii)safekeep in your depository:
Equities, corporate and municipal bonds, UIFs, Eurobonds.
27c. If neither/other, please explain:
By law for settlement and safekeeping and in accordance with the corresponding agreement with the Ministry of Finance.
28. Settlement and Safekeeping Percentages 28a. Please list by instrument type the percentage of the total market in your jurisdiction (either volume or value) settled within your institution, exclusive of your links with third parties.
Government securities: 100%; corporate and municipal bonds: 99%; UIFs: 95% (for stock-exchange trades); shares: 78% (for stock-exchange trades); Eurobonds: not applicable.
28b. Please list by instrument type the percentage of the total market in your jurisdiction (either volume or value) held in safekeeping within your institution.
Government securities: 100%; corporate and municipal bonds: 99%; UIFs: not applicable; shares: not applicable; Eurobonds: not applicable.
29. Are there any activities performed by a third party on behalf of the depository for the depository participants (e.g., vaulting of physical securities, registration, entitlement processing, etc.)?
No
29a. If third parties are employed, please indicate which services they supply (then please answer 29b):
Transfer agent acts on a contract with a registrar to receive information and documents required to execute transactions in the register from registered persons or their authorized representatives and further to hand over to the registrar; transfer agent also receives information and documents from a registrar and transfers them to registered persons or their authorized representatives.
29b. If third parties are employed, does the depository assume liability for losses incurred by participants as a result of the actions/inactions of the third parties?
No
29c. If you acknowledge responsibility, please indicate whether your responsibility is assumed (Choose all that apply.)
regardless of whether such loss was caused by any action or inaction of the agent (please answer 29d)
29d. If you acknowledge responsibility for agents, your responsibility is assumed for losses (Choose all that apply.)
without limit
29e. If other, please explain:

29f. Please specify limit:

29g. Please specify limit:

29h. If other, please explain:
Without limit (in accordance with Russian law).
29i. If other, please explain:

30. Has any participant suffered any losses in the past three years due to the depository's performance?
No
30a. If yes, please select all of the following in which loss has occurred. You will be prompted to enter the number of instances and total loss in USD thereafter. (Choose all that apply.)

30b. Corporate Action. Please specify number of instances:

30c. Corporate Action. Please specify total loss in USD:

30d. Settlement Process - Securities. Please specify number of instances:

30e. Settlement Process - Securities. Please specify total loss in USD:

30f. Settlement Process - Cash. Please specify number of instances:

30g. Settlement Process - Cash. Please specify total loss in USD:

30h. System Outage. Please specify number of instances:

30i. System Outage. Please specify total loss in USD:

30j. If Other, please explain:

30k. For Other, please specify number of instances:

30l. For Other, please specify total loss in USD:

30m. If other, please explain:

Other Services

31. Who accepts cash deposits (or makes payment credit accommodations) for depository transactions? (Choose all that apply.)
Depository
31a. Please name banks:
MICEX Settlement House
31b. If neither/others, please explain:

32. Who processes cash clearing (or draws on credit lines, if applicable) for depository transactions? (Choose all that apply.)
Depository, Neither/others (please answer 32b)
32a. Please name banks appointed by depository:
MICEX Settlement House (for OTC trades)
32b. If others, please explain:
In the MICEX Stock Exchange the cash clearing and cash settlement functions are segregated between National Clearing Center (NCC), which is a clearing organization, and NSD, which settles clearing results provided by NCC during trades (for on-exchange transactions).
33. Who controls the movement of cash for cash deposits (or draws on credit lines, if applicable)? (Choose all that apply.)
Depository
33a. Please name banks appointed by depository:
MICEX Settlement House (for DvP settlement of OTC trades)
33b. If others, please explain:
MICEX
34. Who controls the movement of cash for cash clearing (or for draws on credit lines, if applicable)? (Choose all that apply.)
Depository, Neither/others (please answer 34b)
34a. Please name banks appointed by depository:

34b. If others, please explain:
In the MICEX Stock Exchange the cash clearing and cash settlement functions are segregated between National Clearing Center (NCC), which is a clearing organization, and NSD, which settles clearing results provided by NCC during trades (for on-exchange transactions).
35. Please indicate services you provide. (Choose all that apply.)
Information in advance on corporate (annual or special) meetings in order that owners can vote., Tax assistance where foreign holders may be entitled to tax relief at source or through a claim., In order to avoid fails, an automatic securities lending facility - if requested - is provided for. (please answer 35a), Same day turnaround settlements., Information on distribution of new issues (IPO, Privatization)., Other (please answer 35d)
35a. Automatic securities lending facility is provided for: (Choose all that apply.)
Brokers, Banks, Other financial institutions, Other (please answer 35b)
35b. If other please explain:
The service is available for all NSD clients.
35c. Collateral Handling: please provide details:

35d. If other services, please explain:
Assistance in interest and coupon payments.
36. What procedures are in place for the processing of corporate action entitlements? (Choose all that apply.)
Credited to the securities account upon actual receipt by the depository.
36a. Credited to the securities account: (Choose all that apply.)

36b. If other please explain:

36c. Name of entity:

36d. If other, please explain:

37. What procedures are in place for the processing of interest and dividends?(Choose all that apply.)
Credited to the cash account upon actual receipt by the depository., Income and dividend collection is handled by an entity separate from the depository. (please answer 37c)
37a. Credited to the cash account: (Choose all that apply.)

37b. If other please explain:

37c. Name of entity:
Issuers or paying agents.
37d. If other please explain:

Linkages With Other Central Securities Depositories (CSD) or International Central Securities Depositories (ICSD)

38. Please list all depositories or settlement systems to which you have an electronic link.
Clearstream Banking S.A., Euroclear Bank S.A./N.V., Central Securities Depository (Republic of Kazakhstan), CJSC "Central Depository of Armenia".
39. Are procedures and controls (firewalls) in place to avoid systemic collapse or contamination if one of the linked entities should experience business interruptions for whatever reason?
Yes (please answer 39a)
39a. Please explain:
If one of the linked entities were to experience business interruption, it would not result in NSD's systemic collapse. Risk Mitigation Tools and Disaster Recovery Plan are used by NSD to provide mitigation of any and all possible risks for customers.
40. Has a business interruption recovery plan been developed in the event the linkages should become inoperable for any reason?
Yes
40a. If no or other, please explain:

ACCOUNT STRUCTURES AND RECORDKEEPING

The purpose of this section is to identify the nature of accounts; the naming convention is employed, the level of segregation achieved, accessibility in the event of bankruptcy and the frequency of reporting generated from them.

41. Are participants permitted to maintain more than one account at the depository?
Yes (please answer 41a)
41a. If yes, please indicate number: (Choose one.)
More than one account (please answer 41b and indicate how many)
41b. If more than one account what is the maximum?
Unlimited number of accounts of the same type.
41c. If other, please explain:

41d. If other, please explain:

42. Are participants required/permitted to segregate assets held for their own benefit from those they hold for their clients?
Yes (please answer 42a)
42a. If yes, is segregation required or simply permitted?
Required (please answer 42b)
42b. How does segregation occur? (Choose all that apply.)
By separately designated participant accounts., By sub-accounts within a single participant account., By separately designated beneficial owner accounts.
42c. If other, please explain:

42d. If other, please explain:

42e. If other, please explain:

43. Does the depository permit its participants to open accounts in the participant's own nominee name(s)?
Yes (please answer 43a)
43a. If yes, do laws exist, which define as well as protect the rights of beneficial owners with respect to securities registered in nominee name?
Yes
43b. If other, please explain:

44. In the event a participant's single or main account is blocked for any reason (e.g., insolvency, penalties, violations, liens), would securities held in any account or accounts on behalf of the participant's clients be accessible: 44a. By the participant's clients?
Yes (please answer 44b)
44b. If yes, please describe briefly how clients of participants would access their securities and whether there would be any delay in their ability to do so:
In the event a participant's single account is blocked, the client's securities would still be accessible (in accordance with legislative procedures) without any delay. In case the account is blocked due to non-payment, securities can still be written off.
44c. If other, please explain:

44d. By the intervening authorities controlling insolvency or other proceedings?
Other (please answer 44f)
44e. If yes, please describe briefly under what conditions access would be granted to the intervening authorities:

44f. If other, please explain:
Access to participants' is subject to the requirements of the Federal Law.
44g. By the participant's creditors?
No
44h. If yes, please describe briefly under what conditions access would be granted to the participant's creditors:

44i. If other, please explain:

44j. By the depository's creditors?
No
44k. If yes, please describe briefly under what conditions access would be granted to the depository's creditors:

44l. If other, please explain:

45. In what form does the depository maintain records identifying the assets of each participant? (Choose all that apply. Please refer to "Help" for clarification.)
Computer file (please answer 45b)
45a. If other, please explain:

45b. In which format is the source data maintained?
Information is safeguarded in Informix and in an Oracle database.
46. Rule 17f-7 requires that an Eligible Securities Depository “provides periodic reports to its participants with respect to its safekeeping of assets, including notices of transfers to or from any participant's account.” Does the depository make available periodic safekeeping reports to participants, including notices of transfers to or from the participant's account?
Yes (please answer 46b)
46a. If no or other, please explain:

46b. If yes, please indicate the scheduled frequency: (Choose one.)
Other (please answer 46c)
46c. If other, please explain:
After each transaction and other actions on a participant's account; upon request.
47. What is your document and record retention policy for documents and records described above in this section? (Choose one.)
Other (please answer 47a)
47a. If other, please explain:
In accordance with existing legislation, all records are kept for 5 years, plus an additional 3 years in archive.

SETTLEMENTS

The purpose of this section is to identify the model of settlement employed, the relationship between cash and securities, and the basis on which participants meet their obligations.

48. The Committee on Payment and Settlement Systems of the Bank for International Settlements (BIS) has identified three common structural approaches or models for linking delivery and payment in a securities settlement system. Please indicate which model your procedures most closely resemble (Please refer to details on the models within the "Help" section located below this question): (Choose all that apply.)
Model 1 - Gross, Simultaneous Settlements of Securities and Funds Transfers. (please answer 48a), Model 3 - Simultaneous Net Settlement of Securities and Funds Transfers. (please answer 48a)
48a. Please briefly describe your settlement process, including how your settlement procedures may vary from the model chosen above (and as described below in the Help section)?
Model 1 - for OTC settlement, Model 3 for on-exchange trades with multilateral netting performed by the exchange.
48b. If other, please explain:
For OTC trades - Free of Payment delivery.
Question 48 Help:

Model 1 - Gross, Simultaneous Settlements of Securities and Funds Transfers. These systems settle transfer instructions for both securities and funds simultaneously on a trade-by-trade (gross) basis, with final (irrevocable and unconditional) transfer of securities from the seller to the buyer (delivery) occurring at the same time as final transfer of funds from the buyer to the seller (payment). The securities settlement system maintains securities accounts and funds accounts for participants. Transfer of securities and cash are made by book-entry.
Model 2 - Gross Settlements of Securities Transfers Followed by Net Settlement of Funds Transfers. These systems settle securities transfer instructions on a trade-for-trade (gross) basis, with final transfer of securities from the seller to the buyer (delivery) occurring throughout the processing cycle, but settle funds transfer instruction on a net basis, with final transfer of funds from the buyer to the seller (payment) occurring at the end of the processing cycle.

The securities settlement system maintains securities accounts for participants, but funds accounts are usually held by another entity (often a commercial bank or the central bank). Securities are transferred by book-entry, such transfer being final at the instant the entries are made on the securities settlment system's books. The corresponding funds transfers are irrevocable, but not final. During the processing cycle, the system calculates running balances of funds debits and credits, the balance being settled at the end of the processing cycle when the net debit and net credit positions are posted on the books of the commercial bank or central bank that maintains the funds accounts. Settlement of funds accounts may occur once a day or several times a day.
Model 3 - Simultaneous Net Settlement of Securities and Funds Transfers. These systems settle transfer instructions for both securities and funds on a net basis, with final transfer of both occurring at the end of the processing cycle. Settlement may occur once a day or several times a day. The securities settlement system maintains securities accounts for participants. Funds accounts may be maintained by another entity, either a commercial bank or the central bank.

During a processing cycle, running balances of debits and credits to funds and securities accounts are calculated. All funds and securities transfers are provisional until the end of the processing cycle, at which time book-entry transfer of securities take place. If and only if all participants have sufficient balances of funds and securities, final transfers of the net securities balances and net funds balances are executed.
49. Are the cash and security movements simultaneous?
Yes
49a. If cash and security movements are not simultaneous, please indicate the duration of the timing gap. (Choose one.)

49b. If other, please explain:

49c. If other, please explain:

OWNERSHIP OF SECURITIES

		The purpose of this section is to determine how ownership of securities is represented, the ways the depository maintains ownership or control of securities held in the depository, and the extent to which ownership of assets held by the depository is separated from the proprietary assets of the depository.
	

50. How are depository eligible securities held by the depository?

Securities in the depository are held in dematerialized form., Securities in the depository are held in certificated form.

51. If depository eligible securities are certificated, can depository eligible securities be held outside of the depository?

Certain designated securities may be held outside the depository. (please answer 51a)

		
51a.  If certain designated securities are held outside the depository, please indicate under which conditions these securities would be held outside the depository:
	

Most of the bonds are issued in the form of a global certificate which is held at NSD. Some of the bond-like issues of internal state currency loan bonds known as Minfin bonds (all matured now), were physically held outside NSD.

51d. If registered, how are the depository eligible securities registered?

In the name of the depositing participant or its nominee.

52. If securities are dematerialized:

May dematerialized security positions be re-certificated and held outside the depository?

No (please answer 52a)

52a. Are the securities held: (Choose all that apply.)

Through book-entry at the depository, Through book-entry at a registrar or issuer (please answer 52b)

52b. Please identify which types of entities may act as registrars: (Choose all that apply.)

Issuers, Separate companies that perform registrar functions

52d. If the securities held by the depository are recorded by book entry at the registrar, are the securities registered only to the depository, with the depository providing the function of recording ownership on a centralized basis for the market? (Choose all that apply.)

No (please answer 52g)

		
52g.  If the securities held with the depository are recorded by book-entry at the registrar but are not registered exclusively to the depository, may they be registered to:
	

The beneficial owner, A nominee, Other (please answer 52h)

52h. Please describe:

A pledge holder.

		
52i.  If the securities held with the depository are recorded by book-entry at the registrar, what are the control features at the registrar for transfer of registrar positions to and from the depository (e.g., authentication procedures, reconciliation, confirmation of position at registrar)? Please describe:
	

In respect to equities: authentication procedures, reconciliation, confirmation of position at registrar.

		
53.  Rule 17f-7 requires that an Eligible Securities Depository “maintains records that identify the assets of each participant and segregate the system's own assets from the assets of participants.”

Does the depository maintain records that identify the assets of each participant and segregate the system's own assets from the assets of participants?

Yes

		
 Does the law protect participant assets from claims and liabilities of the depository?
	

Yes

		
 Can the depository assess a lien on participant accounts? (A lien would entitle the depository to take and hold or sell the securities of the participant in payment of a debt.)
	

55c. Please indicate the limits of this lien as indicated below: (Choose one.)

Other (please answer 55d)

55d. Please explain:

Not applicable (see the answer to Q55).

55e. If a lien is placed on a participant's account which has been designated for its clients, will the depository select certain securities to be subject to the lien?

Other (please answer 55n)

		
55j.  For accounts designated as client accounts, do procedures exist to restrict the placement of liens only to obligations arising from safe custody and administration of those accounts?
	

Other (please answer 55m)

55m. If other, please explain:

Not applicable (see the answer to Q55).

55n. If other, please explain:

Not applicable (see the answer to Q55).

		
56.  Transfer of Legal Ownership

Does the depository have legal authority to transfer title to securities?

Yes (please answer 56a)

56a. When does title or entitlement to depository securities pass between participants? (Choose one.)

Other (please answer 56b)

56b. Please describe:

When the lodging of securities into the recipient's account is completed.

HANDLING OF SECURITIES OUTSIDE THE DEPOSITORY ENVIRONMENT

The purpose of this section is to consider the process (and any risk inherent within such a process) that involves the safekeeping of client assets while they are being removed from a depository and being lodged into a depository.

57. How are eligible securities lodged (that is, placed) in the depository system? (Choose all that apply.)
A registered certificate in the name of the depository is delivered to the depository., A participant delivers the security with a valid transfer deed or stock power or other transfer document to the depository which then effects registration., A registrar re-registers the security in the name of the depository., Other (please answer 57a)
57a. Please describe:
The majority of bonds are issued in the form of global certificates and are centrally immobilized at NSD in dematerialized form.
58. When are securities lodged into the depository reflected in a participant's depository account? (Choose all that apply.)
Other (please answer 58a)
58a. Please explain:
Prior to being lodged into the depository, securities are re-registered. Upon delivery to the depository, securities are reflected in the participants' depository account. Bond certificates should be immobilized prior to bonds being reflected in the customer´s account.
59. How long does it usually take to lodge securities with the depository? (Choose one.)
1 to 2 days
59a. Please specify:

59b. If other, please explain:

60. During the process of lodging securities into the depository, can the securities: Be traded?
Other (please answer 60c)
60a. During the process of lodging securities into the depository, can the securities: Be settled?
No (please answer 60d)
60b. During the process of lodging securities into the depository, can the securities: Have ownership transferred?
No (please answer 60e)
60c. If they cannot be traded, or if you answered other, please explain:
Securities can be traded only OTC; when on-exchange, securities can be traded only after the lodging in the depository system is completed.
60d. If they cannot be settled, or if you answered other, please explain:
Securities can be settled only after being reflected in a participant's depository account with NSD.
60e. If ownership cannot be transferred, or if you answered other, please explain:
Ownership can be transferred only after securities are reflected in a participant's depository account with NSD.
61. Are securities immediately available for delivery upon transfer to the depository?
Other (please answer 61d)
61a. If no: Securities are unavailable for:

61b. If more than 4 weeks, please specify:

61c. If other, please explain:

61d. If other, please explain:
Securities are immediately available for delivery upon lodging in the depository and after they are registered in the participant's account.
62. Please describe briefly the arrangements/procedures/facilities you maintain to ensure that eligible securities held at the depository are handled at least as efficiently as compared to securities held outside the depository, particularly in relation to income, corporate actions and proxy services.
NSD provides paying agent services and transfers interest in RUB, USD, etc. including calculation, distribution and payment of dividends, coupons and all kinds of payments made by issuers. NSD also collects data and draws security holder lists and processes interest payments credited to its account. NSD transfers information and materials from registrars and issuers to participants in order for them to be eligible to participate in general meetings of Shareholders; NSD also participates in general meetings of Shareholders itself on behalf of its participants and by proxy voting.
63. What transfer process steps are involved when eligible securities are withdrawn from the depository for safekeeping? (Choose one.)
Securities are re-registered into the name of the beneficial owner or a nominee.
63a. Please specify:

64. How long does it usually take to remove securities from the depository? (Choose one.)
Other (please answer 64b)
64a. Please specify:

64b. If other, please explain:
From 1 to 3 days (up to 3 days for equities if the registration is done via the registrar; otherwise from 1 to 2 days).
65. While the securities are being removed from the depository, can they: 65a. Be traded? (Choose one)
Other (please answer 65b)
65b. Please explain:
Equities can be traded (for OTC trades) only after re-registration or after having been transferred to another depository. (Transaction could be signed but not settled).
65c. Be settled?
No (please answer 65d)
65d. Please explain:
Equities can be settled only after re-registration.
65e. Have ownership transferred?
No (please answer 65f)
65f. Please explain:
Ownership can be transferred only upon securities being reflected in a participant's depository account with NSD.

STANDARD OF CARE

		The purpose of this section is to understand the responsibility and liability that the depository has in providing services to its participants/members in the settlement and clearing of securities and/or cash, and to understand what type of protections exist for participants in the event of a participant failure/default.
	

Depository Liability

		
66.  Does the depository accept liability (independent of any insurance coverage) for the following:

66a.  Reconciliation errors with the registrar and/or the issuer that result in direct damages or losses to participants?

Yes (please answer 66b)

66b. If yes, please check all of the following that apply:

Other (please answer 66c)

66c. If other, please explain:

The depository assumes unlimited liability (except exemption from liability due to Force Majeure circumstances) in accordance with Russian law, including liability for direct damages of participants.

		
66e.  Theft of securities (either physical certificate or electronically from accounts at the depository) from the depository that result in direct damages or losses to participants?
	

Yes (please answer 66f)

66f. If yes, please check all of the following that apply:

Other (please answer 66g)

66g. If other, please explain:

The depository assumes unlimited liability (except exemption from liability due to Force Majeure circumstances) in accordance with Russian law, including liability for direct damages of participants.

		
66i.  Failure of the depository's systems that result in direct damages or losses to participants because they cannot use either securities or funds?
	

Other (please answer 66l)

66l. If other, please explain:

The depository assumes unlimited liability (except exemption from liability due to Force Majeure circumstances) in accordance with Russian law, including liability for direct damages of participants.

		
66m.  Any direct damages or losses to participants caused by the depository due to its errors, omissions or fraud?
	

Other (please answer 66p)

66p. If other, please explain:

The depository assumes unlimited liability (except exemption from liability due to Force Majeure circumstances) in accordance with Russian law, including liability for direct damages of participants.

		
66q.  Any direct damages or losses to participants caused by the depository in its capacity as a central counterparty?
	

Not applicable

66u. Does the depository guaranty settlement?

Yes (please answer 66v)

66v. Please explain how this is accomplished. What are the procedures and safeguards that permit the depository to guaranty settlement?

The DVP principle is used to control settlement. Also, an STP solution for transactions processing is implemented in order to guarantee settlement through automated verification and transmission of participants' instructions. Settlement is guaranteed if there is a sufficient amount of securities to deliver in the customer's account. Also, NSD implements matching instructions settlement of DVP trades.

66x. Any direct damages or losses to participants caused by the depository as a result of force majeure events, acts of God, or political events, etc.?

No, Other (please answer 66~)

66~. If other, please explain:

Some political events may not be considered as force majeure events under Russian law.

66+. In all cases where the depository assumes responsibility for direct or indirect or consequential losses, is the depository's liability limited by a standard of care determination?

		
67.  Do the depository's written contracts, rules, or established practices and procedures provide protection against risk of loss of participant assets by the depository in the form of?

67a.  Indemnification

Other (please answer 67b)

67b. Please explain (then please answer 67c):

Although there is no concept of indemnification under Russian law, the depository bears unlimited liability. NSD must reimburse the Participants' expenses incurred in the event of non-performance or inadequate performance by NSD of its obligations to safekeep and/or confirm rights to securities. This obligation applies unless NSD can prove that the losses occurred due to force majeure circumstances, or the Participant's malicious intent or gross negligence.

		
67c.  Please provide details of the relevant sections of the contracts, rules or practices where this information is found.
	

Paragraph 6.7 of the standard agreement with participants.

67d. Insurance

Yes (please answer 67e)

67e. Please explain (then please answer 67f):

NSD holds an insurance contract with the largest Russian insurance company 'Ingosstrakh', re-insured with Lloyd's. The amount of the insurance coverage is as follows: - for the insurance policy effective from December 1, 2010 to November 30, 2011: USD 50 million; - for the insurance policy effective from December 1, 2011 to November 30, 2012: USD 65 million.

67f. Please provide details of the relevant sections of the contracts, rules or practices where this information is found.

The relevant information is available on NSD's official website, http://www.nsd.ru/en/. The press release dated December 17, 2010 contains information about the insurance policy effective from December 1, 2010 to November 30, 2011. The press release about the insurance policy effective from December 1, 2011 to November 30, 2012 will be published in December 2011.

		
67g.  Acknowledgement of liability for losses caused by depository's own actions.
	

Yes (please answer 67h)

67h. Please explain (then please answer 67i):

The depository assumes unlimited liability in accordance with Russian law.

		
67i.  Please provide details of the relevant sections of the contracts, rules or practices where this information is found.
	

Point 6.7. of the standard custody agreement provides that "NSD shall reimburse the Participant's expenses incurred in the event of non-performance or undue performance by NSD of its obligations on securities safekeeping and/or confirming rights to the securities, including a loss of records on depo accounts, as well as in the event of undue performance of terms and conditions of the present Agreement, if NSD will not prove that the losses have occurred due to force majeure circumstances, malice intention or gross negligence of the Participant."

67j. Other

68. Is the depository immune from legal action in its own jurisdiction?

Security Control

69. How do participants receive information (view actual settlement of trades, movement of securities on their accounts, etc.) and see the status of their accounts? (Choose all that apply.)

By direct electronic link, By receipt of physical account holding statements, Other (please answer 69a)

69a. Please explain:

Through Web Interface Technology.

70. Do participants have access to affect their holdings, including confirming and affirming trades, movement of securities on their accounts, etc.?

Yes (please answer 70a)

70a. How is access given to participants? (Choose all that apply.)

By direct electronic link (please answer 70b), Other (please answer 70c)

70b. Please select type of electronic link:

Internet

70c. Please explain:

Customers have the right to submit documents on paper.

		
71.  Regarding data security:

71a.  Are passwords used by participants to access their accounts?

Other (please answer 71b)

71b. If other, please explain:

The electronic digital signature is used based on resistant certificated cryptography algorithms.

71c. Does each user have a unique user ID?

Yes

71e. Are passwords regularly changed?

Yes (please answer 71f)

71f. How often?

Annually

71h. Is there a user lock-out after a pre-set number of unsuccessful User ID attempts?

Yes (please answer 71i)

71i. How many?

Three (3)

		
 Does the depository communicate with other market entities such as stock exchanges, payment systems, clearing houses, etc., by secured linkages?
	

Yes (please answer 72a)

72a. Please explain:

NSD has secured electronic linkages with the MICEX Stock Exchange, MICEX, SPCEX, the CBR, as well as correspondent depositories and registrars.

		
73.  How does the depository communicate with other market entities?

73a.  Stock Exchanges (Choose all that apply.)

Secured, leased, dedicated telephone line, Internet, Paper/other

73b. Payment Systems (Choose all that apply.)

Secured, leased, dedicated telephone line, Internet

73c. Clearing Houses (Choose all that apply.)

Secured, leased, dedicated telephone line, Internet

73d. Registrars (Choose all that apply.)

Internet, Paper/other

		
 How is access to the physical building controlled? (Choose all that apply.)
	

By guards, By electronic keys/personal ID card, By alarm system

		
 What are the vault security procedures for the safekeeping of physical paper? (Choose all that apply.)
	

Electronic keys/combinations, Visitor logs, Intrusion alarms, Fire alarms, Guards

Participant Default Protections Resulting from a Participant Failure

		
 If a participant defaults, how is the loss covered? (Choose all that apply?)
	

Not applicable

77. During the past three years, has there been a situation where a participant defaulted which resulted in a significant loss?

78. Does the depository have a guaranty fund independent of stock exchange or other market guarantees?

No (please proceed to 79)

		
 Does the depository have forms of oversight management for assessing and monitoring of the following? (Choose all that apply.)
	

Participant eligibility requirements, Participant volumes, Settlement controls that minimize or eliminate the risk of default by a participant (please answer 79d), Blocking of securities movement before receipt of payment

79d. What type or types of settlement controls (Choose all that apply.)

Blocking or freezing of securities positions (please answer 79e), Controlling DVP settlement (please answer 79f), Simultaneous DVP (please answer 79g)

79e. Please explain:

NSD blocks securities positions in case the client's license is withdrawn by the regulator or in case of non-payment of fees or termination of the contract with NSD.

79f. Please explain:

NSD provides its participants with DVP service, which is conducted as follows: after relevant DVP instructions from counterparties are received and matched, the required number of securities is blocked in the seller's account. After the securities are blocked in the seller's account, a cash transaction from buyer's account to seller's account is carried out. If the transaction is completed successfully, securities are moved to the buyer's account. Due to the high level of automation of NSD's custody and cash system and full STP, all these steps are performed in a matter of seconds, thus making DVP simultaneous for both clients.

79g. Please explain:

		
 Does the stock exchange have default protections that extend to the depository, such as the following? (Choose all that apply.)
	

Margin requirements for stock exchange members, Guaranty fund for stock exchange members, Financial requirements for stock exchange membership, Other (please answer 80a)

80a. Please explain:

The DVP principle is implemented; clearing pool includes only fully collateralized obligations, and the depository carries out settlement based on the results of clearing; trades on the derivatives market and trades in book-building mode on the stock market are carried out with the CCP.

BUSINESS RECOVERY PLAN

		
This section is intended to identify key aspects of the depository's Business Recovery Plan (BRP), including testing requirements and past results, expected recovery time periods, and the independent review and validation (if any) of the BRP.
	

81. Do you have a formal business recovery plan?

Yes (please answer 81a)

81a. Does your Business Recovery Plan include: (Choose all that apply.)

Back-up of all computer files, Off-site data storage, Back-up files stored and locked, Off-site operations facility

81b. Please identify both the frequency and the last date of testing for the following third party:

Depository participants/members

Testing is carried out on an ad hoc basis. Last date of testing: December 3, 2011.

		
81c.  Please identify both the frequency and the last date of testing for the following third party:

Stock exchange

Testing is carried out on an ad hoc basis. Last date of testing: May, 2009.

81d. Please identify both the frequency and the last date of testing for the following third party:

Central bank

Testing is carried out on an ad hoc basis. Last date of testing: April, 2008.

		
81e.  Please identify both the frequency and the last date of testing for the following third party:

Local brokers

Testing is carried out on an ad hoc basis. Last date of testing: April, 2008. Note: as NSD cooperates with depository participants/members, every testing for the clients is associated with the testing for brokers.

81f. Please identify both the frequency and the last date of testing for the following third party:

Any other third party

DCC: testing is carried out on an ad hoc basis. Last date of testing: December 3, 2011. NCC, registrars: testing is carried out on an ad hoc basis. Last date of testing: April, 2008.

		
 How quickly can the main system be reactivated in the event of an outage? (Choose one.)
	

1 - 4 hours

		
 If a back-up system exists, how quickly can the back-up system be activated in the event of the main system failing? (Choose one.)
	

1 - 4 hours

84. Will the depository publicly announce any system interruption?

Yes (please answer 84a)

84a. To whom will the depository disclose any system interruptions? (Choose all that apply.)

To the depository regulators, To all direct participants

84e. How will the depository disclose any system interruptions? (Choose all that apply.)

By e-mail, By telephone, Other (please answer 84f)

84f. Please explain:

By regular mail.

		
 In the past three years, has it been necessary to activate the recovery plan in a live situation?
	

PERFORMANCE, INSURANCE, AND LOSS

This section is intended to identify the level of insurance maintained by the depository, and the extent to which coverage would extend to financial loss incurred by participants and their clients, including but not limited to losses resulting from operating performance, security breaches, and employee negligence or misconduct.

86. Has there been any material loss by the depository during the past three years?
No
86a. If there has been a loss, please describe the cause, the final impact and the action taken to prevent a recurrence:

86b. If other, please explain:

87. Has the depository been subject to any litigation involving a participant during the past three years?
Yes (please answer 87a)
87a. Please explain the circumstances and resolution:
Claims brought against NSD and its predecessor entity: In 2009: 1. CJSC "Donskoy Narodny Bank": action for damages in the sum of RUB 1,136,351.10. The claim was unsecured. On April 2, 2009, the Moscow City Arbitration Court dismissed the claim without prejudice. 2. IJS Bank: action for recovery of nominal value and coupon profit for the bonds issued by Faeton-Aero-Finance, Ltd. The claim was unsecured. Following the ruling of the Court, the debt was recovered from Faeton-Aero-Finance, Ltd. The plaintiff abandoned the claim against NSD. In 2011: 1. Bank "Monetary House" OJSC: action for opening a customer account and re-registration of bonds. The claim was unsecured and not associated with NSD services rendered to this client. The claim dated August 11, 2011 was reviewed by the Moscow City Arbitration Court on October 4, 2011. Agreements between NSD and Bank "Monetary House" OJSC were terminated. The claim is pending in the Moscow City Arbitration Court. The second claim of Bank "Monetary House" OJSC for opening a customer account and re-registration of bonds was initiated after the termination of agreements and therefore is not listed.
87b. If other, please explain:

88. Has the depository realized revenues sufficient to cover expenses during the past three years? (Choose one.)
Yes for all three years
88a. If other, please explain:

89. Does the depository maintain a reserve for operating losses?
No
89a. Please describe and indicate reserve amount:

89b. If other, please explain:

90. Has the regulatory body with oversight responsibility for the depository issued public notice that the depository is not in current compliance with any capital, solvency, insurance or similar financial strength requirements imposed by such regulatory body?
No
90a. Please describe:

90b. In the case of such a notice having been issued, has such notice been withdrawn, or, has the remedy of such noncompliance been publicly announced by the depository?

90c. If yes, please describe:

90d. If no, why not?

90e. If other, please explain:

90f. If other, please explain:

91. Does the depository have insurance to cover losses in the event of Default on settlement commitments by the depository or a participant?
Yes (please answer 91a)
91a. What is the amount of the coverage?
01/12/2010 – 30/11/2011 50 million USD; 01/12/2011 – 30/11/2012 65 million USD.
91b. What is the amount of the deductible?
250,000 USD
91c. If other, please explain:

92. Does the depository have Fidelity insurance (that is, insurance to cover loss of securities or money resulting, for example, from acts such as forgery, theft, fraud and/or employee dishonesty)?
Yes (please answer 92a)
92a. What is the amount of the coverage?
01/12/2010 – 30/11/2011 50 million USD; 01/12/2011 – 30/11/2012 65 million USD.
92b. What is the amount of the deductible?
250,000 USD
92c. If other, please explain:

93. Does the depository have insurance for Operational Errors?
Yes (please answer 93a)
93a. What is the amount of the coverage?
01/12/2010 – 30/11/2011 50 million USD; 01/12/2011 – 30/11/2012 65 million USD.
93b. What is the amount of the deductible?
250,000 USD
93c. If other, please explain:

94. Does the depository have Errors and Omissions insurance?
Yes (please answer 94a)
94a. What is the amount of the coverage?
01/12/2010 – 30/11/2011 50 million USD; 01/12/2011 – 30/11/2012 65 million USD.
94b. What is the amount of the deductible?
250,000 USD
94c. If other, please explain:

95. Does the depository have insurance for the Premises?
Yes (please answer 95a)
95a. What is the amount of the coverage?
The Premises rented are insured by the landlord.
95b. What is the amount of the deductible?
Not applicable
95c. If other, please explain:

96. Does the depository have any other insurance?
No
96a. If so, what is it for?

96b. What is the amount of the coverage?

96c. What is the amount of the deductible?

96d. If other, please explain:

97. Who is the insurance carrier? If more than one insurance carrier, please list each carrier here and provide your responses to questions 97a and 97b in corresponding order.
Ingosstrakh Insurance Company; re-insurance by Lloyd's.
97a. Who is the insurance carrier's parent company, if applicable? (If inapplicable, simply type n/a.)
n/a
97b. What is the term of the policy?
From December 1, 2010 until November 30, 2011.
97c. Who does the insurance cover? (Choose all that apply.)
Depository, Direct depository participants
97d. If other, please identify:

98. If you feel that you would like to provide additional details on any of the given answers, feel free to provide any additional comments here (maximum of 5,000 characters) or prepare an additional document identifying the question(s) you are commenting on and upload the document under 98a:

98a. Upload document here:

PUBLIC AVAILABILITY

		
 The AGC encourages respondents/depositories to make their answers to this questionnaire publicly available. Will you be making your response publicly available? (For additional guidance, please review the help feature to this question.)
	

Yes (please answer 99a)

99a. If yes, how will you be making it publicly available: (Choose all that apply.)

Web site (please answer 99b)

99b. Please provide web site address of publicly available questionnaire:

http://www.nsd.ru/en/

		99j.  Please be sure your contact details are updated. Your contact information is located in the first section of Part One within this questionnaire.
	