MOSCOW (RNWire) – The National Depository Center (NDC), Russia’s only settlement depository servicing the full range of Russian securities, announced today its operating results for the first quarter of 2008.
NDC's securities turnover (the market value of securities transferred in inventory operations) rose 34% against the comparable period of 2007 to reach RUR14.435 trillion (RUR10.805 trillion in 1Q 2007).
44.4% of securities involved in inventory operations, which is a significant part of NDC’s securities turnover, were represented by shares. Shares’ market value for 1Q 2008 tripled, reaching RUR6.404 trillion.
As a consequence, NDC strengthened its leading positions in both share and overall securities turnover for 1Q 2008. The number of share issuers serviced by NDC for the reporting period rose by 30 to 687 as of 31 March, 2008.
The number of inventory operations conducted by NDC for 1Q 2008 reached 608,655, including 488,687 operations with shares (80% of all inventory operations’ number). This was 1.6% more than for 1Q 2007.
The number of depository accounts increased 1% to 1,744 since 1 Jan., 2008. This is up 9% year-on-year.
The number of securities issues serviced by NDC for 1Q 2008 reached 2,623, a 9.1% rise, year-on-year.
As of 31 March, 2008, the market value of securities on deposit with NDC was up 13%, to RUR 4.206 trillion, compared with the 1Q 2006 figure of RUR3.722 trillion.
As a settlement depository in the MICEX Group, NDC has implemented a unique new settlement technology. Since 17 March, 2008, MICEX has offered an additional service which allows transactions to be held and obligations fulfilled on ordinary clearing deals through settlements carried out on DVP scheme in real time. This means that now traders can make settlements during trading session.
In February-March 2008, the first transactions took place using technology supporting the Bank of Russia’s direct REPO settlements on corporate Eurobonds on DVP terms on the OTC market.
NDC is working steadily on mutual integration of the securities markets in the CIS countries. In particular, on 26 March, 2008, the Association of National Numbering Agencies (ANNA) confirmed the authority of NDC to act as a Substitute Numbering Agency for the Republic of Uzbekistan. The decision was made based on an official request sent by the Center for Coordination and Control over the Securities Market Operations of the Uzbekistan State Property Committee.
Traditional NDC activities as a numbering agency have recently included new functions. In accordance with Provisions on the Qualification of Foreign Financial Instruments issued by the Federal Financial Markets Service (FFMS) in October 2007. NDC, as a member of ANNA, can now confirm international codes assigned to foreign financial instruments.
As of 1 April, 2008, NDC received and processed requests on 8,084 financial instruments (including requests on the same instrument sent by different clients). In the course of request processing, the company determined that there were requests for information on 4,215 instruments which did not have CFI codes. 447 instruments including 323 depository receipts had CFI codes which did not conform to FFMS qualification requirements. 229 instruments did not have ISIN codes in the ANNA database, and 2,239 instruments had CFI codes in compliance with FFMS qualification requirements.
NDC is actively cooperating with international organizations in the field of approval and acceleration of the procedures for code assignment to securities.
Note:
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.
About NDC:
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, more than 95% of transactions conducted in the corporate and regional bond markets, and 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. For 2007 the value of assets in storage was more than RUR4.3 trillion. 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 codes. 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 of NDC are 46.7% and 39.3% respectively, and in the votes 50.2% 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 a stake in Depository Clearing Company CJSC (36.96 %) and in Settlement Depository Company CJSC (29%).
For further information about NDC: www.ndc.ru, or NDC Public Affaires Department: +7 495 232 0910, .