MOSCOW - National Settlement Depository (NSD), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, has summed up its operating results for the first half of 2011. NSD’s customers’ cash accounts turnover and securities turnover (market value of securities transferred in the course of inventory depository operations) for this period reached RUB104.945 trillion and RUB35.88 trillion respectively. This is 33% and 8.9% more than for 1H 2010 (RUB78.617 trillion and RUB32.961 trillion correspondingly).
NSD's revenues for 1H 2011 according to RAS reached RUB3.01 billion; the company's expenditures amounted to RUB1.815 billion. NSD's net profit reached RUB1.19 billion.
The company's total equity amounted to RUB4.297 billion as of 30 June, 2011. A decrease in this indicator against 01.01.2011 (RUB7.868 billion) is attributable to payment of dividends in May 2011 in compliance with the decision made by NSD's shareholders at AGM held on 26 April, 2011.
Eddie Astanin, Chairman of the Executive Board, NSD, commenting on the company's financial results, said: “NSD's operations in the first six months of 2011 were conducted in line with the company's development priorities approved by its Supervisory Board in December 2010. Based on dynamics of our financial and operating indicators we may say that we are sure that the strategic goals set by NSD's shareholders will be achieved.”
Cash settlements
Cash settlements on MICEX Group's markets at the market closing prices
In 1H 2011 the aggregate turnover of trading accounts for provision of settlements between participants in MICEX Group's on-exchange markets reached RUB48.137 trillion, including:
- RUB35.649 trillion in stock exchange market (24% growth against 1H 2010)
- RUB11.774 trillion in governmental securities market (25% increase against 1H 2010)
- RUB714 billion in derivatives market (51% decrease against 1H 2010).
Operations held via the Bank of Russia's settlement network
For 1H 2011 the number of payments conducted via NSD's correspondent account with the Bank of Russia increased by 26% against 1H 2010 and amounted to 301,826 payments.
The turnover of NSD's correspondent account with the Bank of Russia using its RTGS system, Banking Electronic Speedy Payments (BESP) system reduced by 16% against 1H 2010 and reached RUB50.075 trillion.
For 1H 2011 the number of executed payments conducted via NSD's correspondent account with the Bank of Russia using the BESP system increased in 4,7 times amounting to 30,955 payments.
A significant increase in the number of operations conducted using the BESP is mainly caused by technological improvement of the software and enhancement of the settlement services in the course of conducting of payments through the System.
Securities safekeeping
Value of securities in depository accounts opened with NSD amounted to RUB7.958 trillion as of 30 June, 2011. It is 3.1% more than as of the beginning of 2011 (RUB7.718 trillion as of 31 December, 2010). The market value of Russian issuers' shares on deposit with NSD grew by 2%. The aggregate nominal value of the corporate and regional bonds kept by NSD grew by 11%, value of Eurobonds reduced by 4.9%, and value of UIT units raised by 48.5%.
The number of inventory operations in comparison with the same period of 2010 increased by 2.3% reaching 1,353,071 operations.
The number of issuers which securities were serviced by NSD was increased by 8.4% from the beginning of 2011 reaching 1,708 issuers. Total number of securities issues serviced by NSD grew by 9.6% since 31 December, 2010, and amounted to 3,582 issues. In the meantime the number of foreign issuers' Eurobond issues serviced by the company rose by 9.6% reaching 383 issues. The number of foreign issuers' shares grew from 19 to 96 issues as of 30 June, 2011. The number of depository accounts (including accounts opened by legal entities-non-residents) increased by 4.8% against the beginning of this year and amounted to 1,992 accounts.
The aggregate number of securities on deposit with NSD grew by 1.3% (from RUB2.016 trillion as of 31 December, 2010, to RUB2.043 trillion as of 30 June, 2011).
NSD remains the leading Russian paying agent on corporate and regional bonds. As of 1 July, 2011 its share in the market of paying agent's services was 41.56% on basis of all number of corporate and regional securities issues in circulation, and 43.46% based on the number of issuers of corporate and regional securities in circulation. For 1H 2010 NSD being a paying agent accepted for servicing 51 bond issues of 31 issuers. As of the end of 1H 2011 the total number of bond issues serviced by NSD as a paying agent amounted to 340 issues of 166 issuers.
For 1H 2010 NSD made 363 payments as income on corporate and regional bonds and on the Bank of Russia's bonds for a total sum of RUB1.176 trillion (this is almost twice more than for the same period of 2010 – 323 payments for RUB608.197 billion). The company also paid RUB1.677 billion as income on registered securities (dividends, UITs income, revenues from repurchase of shares); this is by 9.3% less than the same indicator for 2010 (RUB1.849 billion).
Eurobonds' coupon and maturity payments for the first six months of 2011 were made as follows:
Ruble payments – RUB953 million
Euro payments - €18 million
US dollar payments – US$260 million
Acting as Russia's National numbering agency NSD assigns ISIN and CFI international codes to Russian financial instruments, sends information about assigned codes to international database and updates information about Russian ISIN and CFI codes in the international database. For the first half of 2011 NSD assigned 447 Russian securities; ISIN codes of 189 Russian securities were withdrawn.
In 2008 the Federal Financial Markets Service's Provision for Foreign Financial Instruments as Securities approved by FFMS Order #07-105/pz-n of Oct. 23, 2007, came into effect. According to this document NSD, acting as a member of Association of National Numbering Agencies (ANNA), provides services related to qualification of foreign financial instruments as securities to stock market participants.
For all the time of NSD's participation in qualification of foreign financial instruments the company received and processed requests for information about ISIN and CFI codes on 48,628 foreign financial instruments, including requests from various stock market participants on the same instrument. For 1H 2011 the company provided to market participants information about 16,867 instruments. 14,445 instruments meet qualifications requirements in accordance with FFMS's Regulations.
Note
Value of securities held in NSD 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 NSD
National Settlement Depository (NSD) is the largest settlement depository in Russia, a part of the MICEX Group, servicing on-exchange and OTC transactions with all types of debt and equity securities of Russian issuers and providing settlement services to participants in financial markets of the Russian Federation.
NSD 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, the majority of transactions with equities and also services UIT units and securities of foreign issuers.
In accordance with agreements concluded between NSD and the Bank of Russia, NSD acts as a settlement center for the organized securities market.
NSD is Russia's national numbering agency and the substitute numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.
For further information about NSD: www.nsd.ru , or NSD Public Affairs Division: +7 495 232 0910,