- The value of securities under custody grew 25% YoY
- The value of transactions reported to the repository reached RUB 114.2 trillion
- The number of NSD information service users doubled
Central Securities Depository's Services
In Q4 2015, the value of securities under custody held on behalf of clients of National Settlement Depository (NSD) grew by 25% YoY and reached RUB 30.8 trillion1 as of 31 December 2015 (RUB 24.6 trillion in Q4 2014). In 2015, the number of security issues serviced by NSD increased by 18% – from 7.8 thousand to 9.2 thousand; the number of foreign issuers’ security issues increased by 64%, from 1.7 thousand to 2.8 thousand.
The number of inventory operations in the central securities depository (CSD) slightly decreased – from 669 thousand in Q4 2014 to 652 thousand in Q4 2015 (-2.6%).
The number of stock exchange operations remained practically unchanged – 519 thousand in Q4 2015 against 525 thousand in Q4 2014; the off-exchange operations’ number amounted to 132.3 thousand – this was 8% less than in the same period of the previous year (144.3 thousand operations).
In Q4 2015, the value of off-exchange DVP transactions2 increased considerably and reached RUB 794.9 billion; this was 42% more than in Q4 2014.
The Collateral Management System
In Q4 2015, the value of repo transactions with the Federal Treasury performed with the use of the NSD collateral management system grew considerably and reached RUB 9 trillion; it was twice as many as in the previous quarter (RUB 4.6 trillion).
In the fourth quarter, the value of repo transactions with the Bank of Russia conducted with the use of the NSD collateral management service amounted to RUB 4.6 trillion. This was much lower than in the same quarter of 2014 (RUB 21.6 trillion).
The NSD Repository
On 1 October 2015, regulations requiring market participants to submit reports on all types of transactions with derivatives, reports on fair value and marginal sums came into effect.
As expected, the new legal requirements have contributed to a growth of the number of transactions registered with the Repository. For instance, over 135 thousand transactions worth RUB 114 trillion were registered in Q4 2015; it was more than in Q3 2015 (by 27 thousand transactions and RUB 7 trillion respectively). For comparison, in Q4 2014, market participants registered 82 thousand transactions for a total sum of RUB 85 trillion.
The largest number of transactions registered in Q4 2015 included transactions with the following types of instruments:
- Currency forward (80,740);
- Currency swap (34,534);
- Share option (6,591).
For comparison: similar types of transactions were registered in Q3 2015:
- Currency forward (61,095);
- Currency swap (37,587);
- Share option (26).
The Corporate Actions Center
In Q4 2015, 380 shareholder meetings were held with the use of the new e-proxy voting technology based on ISO 20022.
658 corporate actions on foreign securities were held in the reporting period; this is 16% more than in Q4 2014 (567 actions).
In Q4 2015, NSD launched two new module products with information on depository receipts and mortgage participation certificates accepted for servicing by NSD.
In general, successful development of information services in 2015 allowed NSD to increase its client base remarkably in respect of all the company’s products and services. The number of users of information services via the NSD online resource doubled: from 1,150 to 2,250 visitors.
Payment system and cash settlements
In Q4 2015, the value of money transfers increased 8% YoY and reached RUB 104.9 trillion (RUB 97.1 trillion in Q4 2014).
National Numbering Agency and pre-Local Operating Unit (pre-LOU)
NSD acts as Russia’s Numbering Agency and the substitute numbering agency for the CIS countries, assigning ISINs and CFIs. NSD also functions as a pre-Local Operating Unit (pre-LOU). Legal Entity Identifiers (LEIs) assigned by NSD are recognized by regulators, market participants and pre-LOUs of other countries.
In Q4 2015, NSD assigned 57 pre-LEIs; it was less than in Q4 2014 (111 codes). The company also assigned 208 ISINs and CFIs to Russian financial instruments (317 codes in Q4 2014). As a substitute numbering agency, NSD assigned 136 ISINs and CFIs in Q4 2015.
1 — Average daily value of securities under custody in the last month of the reporting period.
2 — NSD conducts settlements of clearing transactions in RUB, US$, EUR, CNY, HKD, GBP, CHF. Data are presented in the ruble equivalent.