MOSCOW - National Settlement Depository (NSD), Russia’s central securities depository, has summed up its operating results for the first quarter of 2013.
In 1Q 2013, NSD’s customers’ cash accounts turnover and its securities turnover (the market value of securities transferred in inventory operations) increased to RUB108.056 trillion and RUB45.431 trillion respectively. It is 83.9% and 65.8% more than for the same period of 2012 (RUB58.758 trillion and RUB27.404 trillion respectively).
NSD's revenues for the first three months of 2013 according to RAS reached RUB4.045 billion, this is 44.5% more than for the same period of 2012 (RUB2.8 billion). The company's expenditures for 1Q 2013 stood at RUB2.767 billion, including RUB9.193 million tax profit payments; this is 50.6% more than for the same period of 2012 (RUB1.837 billion).
The company's net profit for 1Q 2013 32.8% grew against the first quarter of the previous year, reaching RUB1.279 billion (RUB963 million).
NSD's total equity amounted to RUB6.348 billion as of 1 April 2013 (it was RUB6.003 billion as of 1 January 2013 excluding the events after the balance sheet date).
Securities safekeeping and settlements
The value of securities in depository accounts opened with NSD as of 31 March 2013 increased 43.5% in comparison with the same indicator as of 31 December 2012 (RUB12.049 trillion) reaching RUB17.295 trillion. The market value of Russian issuers' shares on deposit with NSD as of 31 March 2013 grew by 117% (RUB9.302 trillion). The increase in aggregate nominal value of corporate and regional bonds on deposit with NSD was 7.8% and reached RUB4.386 trillion; nominal value of Eurobonds on deposit with NSD increased by 10% to RUB256.6 billion, and UIT units’ value grew by 6.7% reaching RUB164.426 billion.
The number of securities on deposit with NSD increased by 18.1% from 18.119 trillion securities as of 31 December 2012 to 21.391 trillion securities as of 31 March 2013.
The number of issuers of securities serviced by NSD amounted to 3,805; this is 2.6% more against the beginning of 2013. The number of Russian issuers 5% increased, amounting to 2,780. The total number of securities issues serviced by NSD reached 6,803; it makes 2.2% growth against the data as of 31 December 2012. The number of Russian issuers’ shares serviced by NSD grew from 3,655 to 3,819 issues. The number of depository accounts including accounts opened by legal entities-non-residents, increased by 3.9% against the beginning of 2013 and stood at 3,603.
The number of inventory operations for 1Q 2013 decreased by 1.3% against the comparable period of the previous year; it reached 627,727 operations.
The value of DVP transactions held by the participants in OTC market using NSD's correspondent accounts opened with Clearstream and Euroclear for the first three months of 2013 reached RUB44.465 billion; this is 78.1% more against the same indicator for 2012 (RUB24.961 billion). In January-March 2013, the number of DVP transactions increased two fold against 1Q 2012 and amounted to 614 transactions.
The value of NSD's internal DVP transactions held in the OTC market for the first three months of 2013 decreased by 91.4% against the same period of 2012 – from RUB25.291 billion to RUB2.17 billion. The number of NSD's internal DVP transactions conducted in January-March 2013 reduced by 68.3% compared with the same indicator for the previous year (from 60 to 19 transactions). The decrease in the number and value of NSD's internal DVP transactions in attributable to the company’s customers’ switch to settlements on DVP-1, DVP-2 and DVP-3 models implemented in NSD in 2012 following the integration of NSD with DCC and RTS Settlement Chamber.
In 1Q 2013, 26,637 clearing operations were conducted in NSD. The value of transferred securities amounted to RUB412.974 billion.
For the first three months of 2013, the value of external FOP transactions held by the participants in the OTC market was RUB5.926 trillion; this means that it increased more than eleven fold against the comparable indicator for 1Q 2012 (RUB521 billion). The number of external FOP transactions conducted for the first three months of 2013 10.8% grew against the same indicator of 1Q 2012, amounting to 29,076 transactions.
The value of NSD's internal FOP transactions held by the participants in the OTC market grew to RUB4.295 trillion for the reporting period; this is more than four-fold growthagainst the same indicator for 1Q 2012 (RUB1.031 trillion). The number of NSD's internal FOP transactions also increased four-fold against January-March 2012 (from 16.508 to 68.182 transactions).
Cash settlements on Moscow Exchange Group's markets at the market closing prices
In January-March 2013, the aggregate cash turnover in trading bank accounts for provision of settlements between participants in Moscow Exchange Group's and SPCEX's on-exchange markets amounted to RUB99.588 trillion, including:
- on stock exchange market: RUB99.495 trillion (363% growth against 1Q 2012);
- on SPCEX stock exchange market: RUB400 million (60% decrease against 1Q 2012);
- on Standard stock market: RUB93 billion.
Operations held via the Bank of Russia's settlement network
In 1Q 2013, the cash turnover in NSD's correspondent account with the Bank of Russia increased by 26.8% against 1Q 2012, reaching RUB118.441 trillion.
The number of payments conducted via NSD's correspondent account with the Bank of Russia for 1Q 2013 3.5% increased against the analogous period of 2012 and amounted to 147,348 payments.
In January-March 2013, the turnover of NSD's correspondent account with the Bank of Russia using its RTGS system, Banking Electronic Speedy Payments (BESP) system rose by 34.7% against 1Q 2012 and reached RUB97.21 trillion.
The number of executed payments conducted via NSD's correspondent account with the Bank of Russia using BESP system grew by 68.8% against 1Q 2012, standing at 45,941 payments. This significant increase is mainly attributable to the technologic improvement of NSD's software and enhanced settlement services in respect of conducting payments through the BESP system.
NSD remains the leading Russian paying agent on corporate and regional bonds. As of 1 April 2013, its share in the market of paying agent's services was 34.9% on basis of all number of corporate and regional securities issues in circulation, and 38.67% based on the number of issuers of corporate and regional securities in circulation. In first quarter of 2013, NSD as a paying agent accepted for servicing 6 bond issues of 3 issuers. As of 1 April 2013, the total number of bond issues serviced by NSD as a paying agent amounted to 348 issues of 145 issuers.
In 1Q 2013, NSD made 219 payments as income on registered securities (dividends, UITs income, revenues from repurchase of shares) in the sum of RUB1.134 billion (this is by 23.6% less than the same indicator for 1Q2012 — RUB1.485 billion) and 188 payments in the sum of RUB67.292 billion as income on corporate and regional bonds (this is by 60.3% more than for the same period of 2012 – 177 payments for RUB41.973 trillion).
This decrease in the amount of payments held by NSD as a paying agent is to be take place during redemption of issues which were registered or to which the identification numbers were assigned prior to 1 January 2012 (due to a changed procedure of payment on equity securities with mandatory centralized custody which were registered or to which the identification numbers were assigned prior to 1 January 2012, and on the federal state equity securities with mandatory centralized custody regardless of their registration date).
In compliance to the change of the above mentioned procedure, in 2012, NSD as a depository providing services of mandatory centralized custody, made 113 payments as income on bonds for the total sum of RUB392.441 billion.
The sum of Eurobonds' coupon and maturity payments in January-March 2013 amounted to:
- Ruble payments: RUB41 million
- Euro payments: €0.9 million
- US dollar payments: US$124.8 million
- British pound payments: £0.07 million
Being Russia's National numbering agency, NSD assigns ISIN and CFI codes to Russian financial instruments, submits information about assigned codes to the ANNA international database and updates the international database with regard to Russian ISIN and CFI codes. In 1Q 2013, NSD assigned international ISIN and CFI codes to 304 Russian financial instruments and withdrew ISIN codes from 95 Russian securities.
In 2008, the Federal Financial Markets Service's Provision for Foreign Financial Instruments as Securities approved by FFMS Order #07-105/pz-n of 23 October 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 contributing to qualification of foreign financial instruments, NSD received and processed 61,115 requests on ISIN and CFI codes of foreign financial instruments (including requests on the same instrument sent by different clients). By the end of 4Q 2012 information about 21,844 instruments was provided to the market participants; out of them 18,337 instruments conform to the FFMS qualification requirements.
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.
The volume of transactions conducted by OTC market participants is calculated on the basis of transferred securities' market value using NSD's methodology.
National Settlement Depository (NSD) is the central securities depository of the Russian Federation, a part of the Moscow Exchange Group. NSD is Russia's national numbering agency and the substitute numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.
The status of central securities depository was assigned to NSD by the Russian Federal Financial Markets Service’s order on 6 November 2012.
NSD holds professional securities market participant license #177-12042-000100 for depository operations issued by the Russian Federal Financial Markets Service on 19 February 2009, license #3294 for bank operations issued by the Central Bank of the Russian Federation on 26 July 2012 and license #077-00004-000010 for the clearing activities issued by the Russian Federal Financial Markets Service on 20 December 2012.
Registered office: Building 8, 1/13, Sredny Kislovsky Pereulok, Moscow 125009, Russia.
Supplementary office "Krasnye Vorota": 12, Spartakovskaya St., Moscow 105066, Russia.
For further information about NSD: http://www.nsd.ru/, or NSD Public Affairs Division: +7 495 232 0910, e-mail
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