The National Depository Center (NDC), Russia’s only settlement depository servicing the full range of Russian securities, today announced its operating results for the first nine months of 2008.
NDC's securities turnover (the market value of securities transferred in inventory operations) rose 13.6% against the comparable period of 2007 to RUR45.764 trillion (RUR40.265 trillion in 3Q 2007).
Some 38.4% of securities involved in inventory operations were represented by shares. The market value of shares for 3Q 2008 decreased 1% against the same period of 2007, to RUR17.608 trillion.
The market value of securities on deposit with NDC as of 30 Sept., 2008 was 2.3% less at RUR 4.025 trillion, compared with the 3Q 2007 figure of RUR4.122 trillion.
Unusually, a decrease in the market value of securities was registered. For 3Q 2008 it was 8.2% less for 360.730 billion (RUR4.385 trillion was registered as of June 30, 2008). It is worth noting that securities on deposit with NDC for the first nine months of 2008 increased in number by 86% from 1.131 trillion as of Dec. 31, 2007 to 2.104 trillion as of Sept. 30, 2008. The rise in number of securities for July-September 2008 was 47.6% (1.425 trillion securities were registered as of June 30, 2008).
Despite a continuing trend of growth in value of unit investment trusts’ units on deposit (by 132% against 3Q 2007), there was a decrease registered against the second quarter of 2008 (from RUR24.868 billion as of June 30 to RUR24.662 billion as of Sept. 30).
The number of inventory operations conducted by NDC for 3Q 2008 was 1,944,272, including 1,515,648 operations involving shares (78% of all inventory operations). This was 8.6% more than for 3Q 2007.
The number of depository accounts rose 5.7% to 1,825 since 1 Jan., 2008. This was up 7.4% year-on-year.
The number of securities issues serviced by NDC for 3Q 2008 reached 2,698, a 12.2% rise against the figure for Jan. 1, 2008, and up 20.7% year-on-year.
For January-September 2008, NDC, acting as the nominee holder, made 18,724 payments on registered securities (including dividends and income on closed UITs, and funds from share sales) to its clients for the total sum of RUR6.374 billion. This is 31% more than for the same period of 2007. Acting as the paying agent, the company made 16,414 payments in regional and corporate bond coupon income and repayment amounts for the total sum of RUR85.681 billion (111.97% more against 2007). Acting as nominee holder, NDC also paid out US$78.366 million and RUR753.41 million as Eurobond income and repayment amounts.
For January-September 2008, in its role as Russia’s national numbering agency, NDC assigned international ISIN and CFI codes to 488 Russian securities and withdrew ISIN codes from 373 Russian securities.
As of Sept. 30, 2008, NDC received and processed approximately 18,000 requests on financial instruments (including requests on the same instrument sent by different clients). In the course of processing, the company determined that there were requests for information on 8,291 instruments. It was determined that 986 instruments did not have CFI codes including 218 instruments which also did not have ISIN codes. A further 248 instruments, including 11 depository receipts, had CFI codes which did not conform to ISO 10962 and the Federal Financial Markets Service’s qualification requirements (“Provision for Foreign Financial Instruments as Securities” approved by FFMS Order #07-105/pz-n of Oct. 23, 2007 and registered by Russia’s Ministry of Justice under #10673 on Dec. 11, 2007). Another 7,057 instruments had CFI codes which did not conform to the FFMS qualification requirements for foreign financial instruments.
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 on nominal value.
Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in Russia, servicing the full range of debt and equity securities of Russian issuers. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, sub-federal and municipal bond issues. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, more than 99% of transactions conducted in the corporate and regional bond markets, and more than 99% of stock exchange transactions with equities and OTC trades. The international rating agency Thomas Murray has assigned NDC an АА- rating as a central depository. NDC is Russia's national numbering agency, and the substituting numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.
Among NDC’s founders are MICEX and Bank of Russia (the founders’ shares in the property of NDC are 46.67% and 39.35% respectively, and in the votes 50.16% and 42.3% respectively). Members include GPB OJSC (Gazprombank), Evrofinans Mosnarbank, Rosbank, VTB Bank (Vneshtorgbank), Bank of Moscow, Rossiysky Credit Bank, Vneshekonombank, ING Bank Eurasia, JP Morgan Bank International LLC, UniCredit, Deutsche Bank, and Sberbank. The Partnership also has stakes in Depository Clearing Company CJSC (37.29%), in Settlement Depository Company CJSC (28.54%) and in Bank "National Clearing Centre" CJSC (0.27%).
For further information about NDC: www.ndc.ru, or NDC Public Affairs Department: +7 495 232 0910, .