MOSCOW – The National Depository Center (NDC), Russia’s only settlement depository servicing the full range of Russian securities, announced today that for the first nine months of 2007 the market value of securities transferred in inventory operations rose by 110% compared with the same period for 2006, reaching RUR40.265 trillion, versus the comparable 2006 figure of RUR19.360 trillion.
The total value of all securities held at NDC was RUR4.122 trillion (approx. US$165.2 billion) as of 30 September 2007, up 25.4% compared with the Dec. 31, 2006 figure of RUR3.29 trillion (US$124.9 billion).
The value of shares on deposit was up 31% in comparison with Dec. 31, reaching RUR1.489 trillion as of 30 Sept., 2007. The value of Unit Investment Trusts (UITs) on deposit, RUR 10 bn.625 million, was up 157% in comparison with the Dec. 31, 2006 figure.
Third quarter 2007 was characterized by active operations in the servicing of shares and UITs. The number of share issuers serviced by NDC for the first nine months of 2007 reached 590 companies (492 companies as of 30 June 2007) or 238 more than the Sept. 30, 2006 figure. The number of UIT managing companies rose to 76, an increase of 14, and the number of UITs on deposit was 196, an increase of 30. The number of securities issues serviced by NDC for the first nine months was 2,235, an increase of 36.8% year-on-year.
Total number of inventory operations for the first nine months was over 1.79 million, an increase of 34.3% in comparison with the same period of 2006.
In the third quarter, NDC paid special attention to the development of its international connections. Thus NDC opened a direct account with the Euroclear Group, through Euroclear SA/NV, providing clients with a full range of depository services in international capital markets. The company also signed a Memorandum of Cooperation with CJSC National Depository Centre (Republic of Azerbaijan) and opened an account at NDC of Azerbaijan as a nominee shareholder. This will help NDC to move toward international financial markets’ standards and to fulfill projects related to direct trading in foreign securities.
NDC has also doubled its policy liability limit to US$50 million. This is one of the highest insured liability limits among Russian financial institutions. Total amount of insurance cover for NDC liabilities is now over US$96 million.
Value of securities held in NDC accounts is an operational indicator which does not include the market value of other assets held in issuers’ accounts. The value of shares and units of Unit Investment Trusts is based on market value, and the value of bonds is based nominal value.
Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in Russia, servicing the full range of equity securities of Russian issuers. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, 95% conducted in the corporate and regional bond markets, and 90% of stock exchange share transactions. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, and 95% of sub-federal and municipal bond issues. The international rating agency Thomas Murray has assigned NDC an A+ rating as a central depository. In 2006 the value of assets in storage was RUR 3.3 billion, turnover was RUR 30.7 billion, and the total number of operations 1.9 million. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numerating agency, the substituting numerating agency for the CIS, authorized to assign the international ISIN and CFI indexes. It is also a member of the international accounting infrastructure, providing settlements on the global financial markets using direct accounts at Clearstream Banking S.A. and Euroclear Bank. It also holds accounts at the Central Depository of the Republic of Kazakhstan and the NDC of the Republic of Azerbaijan.
Among NDC’s founders are MICEX and Bank of Russia (the founders’ shares in the property are 46,7% and 39,3% respectively, and in the votes 50,2% and 42,3% respectively). Members include Gazprombank, Evrofinans Mosnarbank, Rosbank, VTB Bank (Vneshtorgbank), Bank of Moscow, Rossiysky Credit Bank, Vneshekonombank, ING Bank Eurasia, JP Morgan Bank International LLC, International Moscow Bank, Deutsche Bank, and Sberbank of Russia. The Partnership also has a stake in Depositary Clearing Company CJSC (36.96 %) and in Settlement Depository Company CJSC (29%).
For further information about NDC: www.ndc.ru, or NDC press service: +7 495 232 0910,