Unless stated otherwise, all metrics are for Q3 2021 and changes in metrics are in comparison to Q3 2020.
- NSD’s net profit increased 88.3% to RUB 1.72 billion under the Russian Accounting Standards (RAS);
- the fee and commission income reached RUB 2.38 billion, showing the growth of 29.3%;
- the value of assets in custody jumped 30.3% to the equivalent of RUB 73.2 trillion (as of 30 September 2021);
- the total number of securities issues serviced by NSD increased 9.1% to 28.2 thousand (as of 30 September 2021);
- the number of cash transfers reached 523.2 thousand, having increased 35.6%;
- the number of trades reported to the Trade Repository soared 66% to 12.4 million.
Settlement and Custody Infrastructure
By the end of Q3 2021, the value of securities in custody at NSD reached RUB 73.2 trillion, a 30.3% increase against the similar period of 2020 (RUB 56.1 trillion). The number of securities issues (ISINs) serviced by NSD grew 9.1% to 28.2 thousand. The number of non-Russian securities issues and Russian Ministry of Finance’s Eurobond issues reached 19.4 thousand (+9.7%).
The value of Federal Loan Bond (OFZ) balances reached RUB 15.7 trillion as of the end of Q3 2021, which represents a 39% increase against Q3 2020.
The value of OFZ balances in foreign nominee accounts at the end of Q3 was RUB 3.3 trillion.
The number of OTC trades settled and cleared by NSD on a delivery versus payment (DVP) basis reached 133.9 thousand (+35.7%), while the value of such trades amounted to RUB 3.8 trillion.
14 commercial paper issues of 13 issuers with the total value of RUB 43.3 billion were registered. Also, in Q3, NSD registered 5 commercial paper programs of 13 issuers, valued, in aggregate, at RUB 403.5 billion.
The offering of 15 commercial paper issues valued, in aggregate, at RUB 137.2 billion was completed; 7 commercial paper issues valued, in aggregate, at RUB 4.9 billion were redeemed.
With respect to Russian and non-Russian securities, 4,254 and 12,895 corporate action events, respectively, were initiated.
In September, NSD’s account with Euroclear Bank SA/NV was, for the first time, credited with units of a foreign mutual fund through the FundSettle Platform that provides all clients of Euroclear Bank SA/NV and transfer agents with a single access point to process cross-border fund transactions.
The E-voting service gets more popular both among shareholders (the number of shareholders who voted through the service increased 42% against Q3 2020), and among issuers. The E-voting service was used by 8 issuers to hold 8 general meetings of shareholders (as compared to 5 issuers and 5 general meetings in Q3 2020), with PJSC Raspadskaya becoming a first-time user of the service.
Trade Repository’s clients showed a significantly greater level of their trade activity. In Q3, 12.4 million trades were reported, a jump from 7.4 million in Q3 2020. The biggest growth was in the segment of repo trades (10.6 million versus 7.3 million). The number of swaps reported soared 11.3%, from 50.3 thousand to 56 thousand. The number of forex forward contracts reported also increased, from 26.9 thousand to 37.8 thousand. The total value of trades reported to the Trade Repository in Q3 2021 amounted to RUB 179 trillion, as compared to RUB 129 trillion in the same period of 2020.
NSD continues growing the Reporting Agent service that allows participants to report their trades to the Trade Repository through NSD acting as reporting agent. Thanks to the service, clients can comfortably report trades to the Trade Repository without investing heavily in infrastructure and IT solutions. Since the service launch in 2019, the list of instruments that can be reported through NSD has been expanded significantly.
In response to interest shown by clients, NSD's Trade Repository continues making improvements that make it possible to issue customized statements from contracts registers. Thanks to being provided with information in a user-friendly format, clients are able to control information registered with the Trade Repository, monitor the quality of data, and exercise control over reporting agents’ actions in a timely fashion.
New Services and Customer Segments
The liquidity offered by the Federal Treasury through repo trades, involving NSD’s Collateral Management System (CMS), amounted to RUB 16.8 trillion in Q3 2021, a 335.9% increase against 2020. Floating-rate repos accounted for a significant share of that amount. The average maturity of Federal Treasury’s repos with NSD’s collateral management was 51 days.
In January, the Federal Treasury started offering its liquidity through the Single Treasury Account. The amount of transactions through NSD’s CMS reached RUB 24 trillion.
In March 2021, the Federal Treasury launched weekly repo auctions with a new securities basket GCMBS which included standardized mortgage-backed bonds issued by DOM.RF. The basket includes 24 securities issues. As of 30 September 2021, the amount offered through repos in mortgage-backed bonds was RUB 300 billion.
Bank of Russia’s repos with a maturity of one month and one year, offered to the market in 2020 as a measure to support the national economy, are still in demand. The instrument embeds a mechanism for intellectual selection of securities to be offered as collateral, depending on the maturity of the trade. In Q3, the liquidity offered by the Bank of Russia through one-month repos and one-year repos amounted to RUB 259.78 billion and RUB 60 million, respectively.
In addition, NSD’s platform for Global Creditors’ liquidity management was made available to another Global Creditor, the Finance Committee of Leningrad Region. The liquidity offered by the new Global Creditor in Q3 2021 amounted to RUB 13.4 billion.
Positive changes are seen in the development of financial marketplaces. As of 30 September 2021, financial products available through financial marketplaces were purchased by users from all federal districts of Russia and 292 Russian cities and towns. Transactions are registered with NSD’s Registrar of Financial Transactions (RoFT). In Q3 2021, the RoFT registered transactions in bank deposits, bonds, UIT units, and OSAGO vehicle insurance policies. On 22 September, the first loan product transaction made on the financial platform Finuslugi launched by Moscow Exchange was registered.