The National Depository Center (NDC), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, announces its operating results for 2008. NDC's securities turnover (the market value of securities transferred in inventory operations) reached a record RUR60.98 trillion for 2008. This is 1% higher than for 2007 (RUR60.49 trillion).
In 2008 the market value of securities on deposit with NDC decreased 4.1% amounting to RUR 4.13 trillion (as of 31 December, 2008) compared with the 2007 figure of RUR4.312 trillion. Reduction of this indicator was caused by the unfavorable pricing environment in 2008. The decrease in market values was partially compensated for by the inflow of additional securities for deposit. Thus, the aggregate number of securities on deposit with NDC doubled in 2008 from 1.131 billion securities as of 31 December, 2007 to 2.301 trillion securities as of 31 December, 2008. Another compensating factor was a rise in the nominal value of corporate bonds and Eurobonds, and in the market value of Unit Investment Trust (UIT) units. For 2008 the aggregate nominal value of corporate bonds on deposit with NDC rose 31.8%; nominal value of Eurobonds rose 215%, and UIT units’ market value increased by 120.5%.
Nikolay Egorov, Director, NDC, said: “Taking into consideration the general crisis situation in the stock market we can say that NDC’s performance is comparatively stable as its basic indicators for 2008 are quite close to the company’s results for 2007. However it is worth pointing out that this stability was based primarily on the attraction of new securities, new customers, and the introduction of new settlement services. NDC’s share of the marketplace as a paying agent for corporate and regional bond issuers has grown. This is a result of serious work by NDC staff aimed at improved service quality, increased efficiency and expanded service range.”
In 1H 2008, NDC handled 62% of all securities on deposit among settlement depositories in Russia[1]. This confirms NDC’s leading position among Russia’s settlement depositories.
NDC is one of the leading Russian paying agents on corporate and regional bonds. For 2008 NDC’s share in this market reached 43.58% (basing on nominal value of corporate and regional bonds on deposit). In 2008 NDC, acting as a paying agent, serviced 72 new bond issues from 65 issuers. In total, NDC serviced 290 bond issues from 206 issuers during the year. The value of corporate and regional bond issue coupon and maturity payments through NDC almost doubled for 2008 against 2007, with 660 payments for RUR129.4 billion made (against 64.8 billion for 2007).
The number of inventory operations conducted by NDC for 2008 increased 2% and exceeded 2.5 million, including 1.96 million operations with shares (78% of all operations). The number of depository accounts for 2008 rose 2.78% to 1,774 accounts.
The number of securities issues serviced by NDC in 2008 reached 2,759. This was 14.8% more than in 2007. The number of issuers serviced by NDC amounted to 1,315; this is 8.2% more than in 2007. The number of NDC depositors rose 11.1% to 908.
For 2008, in its role as Russia’s national numbering agency, NDC assigned international ISIN and CFI codes to 587 Russian securities and withdrew ISIN codes from 505 Russian securities.
As of 31 December, 2008, NDC received and processed approximately 24,030 requests on financial instruments (including requests with regard to the same instrument sent by different clients). In the course of processing, the company determined that there were requests for information on 9,554 instruments. It was determined that 1,125 instruments did not have CFI codes including 211 which also did not have ISIN codes. A further 250 instruments, including 12 depository receipts, had CFI codes which did not conform to ISO 10962 and the Russian 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). Another 8,179 instruments had CFI codes which conform to the FFMS qualification requirements for foreign financial instruments.
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 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, Vnesheconombank, 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, .
[1] According to PARTAD Infrastructure Institute