National Settlement Depository (NSD), Russia’s central securities depository, has summed up its operating results for the first nine months of 2013.
In January-September 2013, NSD’s customers’ cash accounts turnover and its securities turnover (the market value of securities transferred in inventory operations) increased to RUB303.892 trillion and RUB122.919 trillion respectively. It is 58.9% and 35.5% more than for the same period of 2012 (RUB191.267 trillion and RUB90.746 trillion respectively).
NSD's revenues for the first nine months of 2013 according to RAS reached RUB24.617 billion, this 170% more than for the same period of 2012 (RUB9.114 billion). The company's expenditures for 9M 2013 stood at RUB21.591 billion, including RUB598.531 million tax profit payments; this is 241% more than for the same period of 2012 (RUB6.327 billion).
The company's net profit for 9M 2013 8.6% grew against the first nine months of the previous year up to RUB 3.025 billion (RUB2.786 billion in 9M 2012).
NSD's total equity amounted to RUB6.861 billion as of 1 October 2013 (it was RUB5.83 billion as of 1 January 2013 including the events after the balance sheet date).
Safekeeping, servicing and settlements on securities
The value of securities in depository accounts opened with NSD as of 30 September 2013 increased 70.1% in comparison with the same indicator as of 31 December 2012 (RUB12.049 trillion) reaching RUB20.495 trillion. The market value of Russian issuers' shares on deposit with NSD as of 30 September 2013 grew by 170% (RUB11.708 trillion). The increase in aggregate nominal value of corporate and regional bonds on deposit with NSD for 9M 2012 was 15.7% and reached RUB4.706 trillion; nominal value of Eurobonds on deposit with NSD increased by 79.9% to RUB419.798 billion, and the UIT units’ value grew by 17.9% reaching RUB181.652 billion.
The number of issuers of securities serviced by NSD amounted to 3,850; this is 3.9% more against the beginning of 2013. The number of Russian issuers increased 8%, amounting to 2,860. The total number of securities issues serviced by NSD reached 6,892; it makes 3.6% growth against the data as of 31 December 2012. The number of Russian issuers’ shares serviced by NSD grew from 3,655 to 3,944 issues. The number of depository accounts including accounts opened by legal non resident entities, increased by 6.6% against the beginning of 2013 and stood at 3,695.
The number of inventory operations for the first nine months of 2013 increased by 12.4% against the same period of the previous year; it reached 1,947,563 operations.
The value of DVP transactions held by the participants in the OTC market using NSD's correspondent accounts opened with Clearstream and Euroclear for the first nine months of 2013 reached RUB198.145 billion; this is 44.8% more against the same indicator for 2012 (RUB136.88 billion). In January-September 2013, the number of DVP transactions increased by 120% against the similar period of 2012 and amounted to 2,540 transactions.
The value of NSD's internal DVP transactions held in the OTC market for 9M 2013 decreased by 76.3% against the same period of 2012 – from RUB51.689 billion to RUB12.243 billion. The number of NSD's internal DVP transactions conducted in January-September 2013 was reduced by 69% compared with the same indicator for the previous year (from 142 to 44 transactions).
In January-September 2013, 111,910 clearing operations were conducted in NSD. The value of transferred securities amounted to RUB3.735 trillion.
For the first nine months of 2013, the value of external FOP transactions held by the participants in the OTC market was RUB8.668 trillion; this is three times as much as for the first nine months of 2012 (RUB2.89 trillion). The number of external FOP transactions conducted in 9M 2013 dropped 33.1% against the same indicator for the first nine months of 2012, amounting to 50,294 transactions.
The value of NSD's internal FOP transactions held by the participants in the OTC market grew to RUB12.939 trillion for the reporting period; this is four times as much as the same indicator for 9M 2013 (RUB3.212 trillion). The number of NSD's internal FOP transactions increased by 285% against 9M 2012 (from 52,875 to 203,619 transactions).
Cash settlements
Cash settlements on Moscow Exchange Group's markets at the close of trading
In January-September 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 RUB278.208 trillion, including:
- on the stock market: RUB277.962 trillion (230% growth against 9M 2012);
- on the SPCEX stock exchange market: RUB420 million (89.5% decrease against 9M 2012);
- on the Standard stock market: RUB246 billion.
Operations held via the Bank of Russia's settlement network
In January-September 2013, the cash turnover in NSD's correspondent account with the Bank of Russia increased by 40.19% against the same period of 2012, reaching RUB358.096 trillion.
The number of payments conducted via NSD's correspondent account with the Bank of Russia for 9M 2013 increased by 65.6% against the same period of 2012 and amounted to 499,124 payments.
In January- September 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 39.3% against 9M 2012 and reached RUB294.358 trillion.
The number of executed payments conducted via NSD's correspondent account with the Bank of Russia using BESP system grew by 61.5% against 9M 2012, standing at 156,489 payments.
NSD remains the leading Russian paying agent for corporate and regional bonds. As of 1 October 2013, its share in the market of paying agent's services was 29.3% of the total number of corporate and regional securities issues in circulation, and 33.6% of the total number of issuers of corporate and regional securities in circulation. For the first nine months of 2013, NSD as a paying agent accepted for servicing 28 bond issues of 15 issuers. As of 1 October 2013, the total number of bond issues serviced by NSD as a paying agent amounted to 304 issues of 125 issuers.
For the first nine months of 2013, NSD made 618 payments as income on registered securities (dividends, closed UITs income, revenues from repurchase of shares) in the sum of RUB57.768 billion and KZT1 million (this is 120% more than the same indicator for 9M 2012 — RUB25.943 billion) and 624 payments in the sum of RUB296.098 billion as income on corporate and regional bonds (this is 46.9% more than for the same period of 2012 – 644 payments for RUB201.578 billion).
This decrease in the amount of payments held by NSD as a paying agent is to 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 with the change of the above mentioned procedure, in the first nine months of 2013, NSD as a depository providing services of mandatory centralized custody, made 471 income payments on bonds amounting to RUB625.138 billion and US$27.4 million.
The sum of Eurobonds' coupon and maturity payments for the first nine months of 2013 amounted to:
- Ruble payments: RUB2,419 million
- Euro payments: ?1.2 million
- US dollar payments: US$989.6 million
- British pound payments: £0.18 million
- Hong Kong dollar payments – HKD0.055 million
- Swiss franc payments: CHF0.002 million
In accordance with the notification published on the Russia’s Federal Financial Markets Service’s web site on 5 February 2013, NSD started functioning as the repository since 6 February and began maintaining the register of contracts concluded on the basis of the master agreement (the integrated agreement).
For the first nine months of 2013, 314 organizations concluded repository agreements with NSD. 152 companies took part in the trial run of the OTC transaction registration system implemented in NSD.
Being Russia's National numbering agency, NSD assigns ISIN and CFI codes to Russian financial instruments, submits information about assigned codes to the Association of National Numbering Agencies (ANNA) international database and updates information about assigned ISIN and CFI codes.
In January-September 2013, NSD assigned international ISIN and CFI codes to 757 Russian financial instruments and withdrew ISIN and CFI codes from 577 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 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 66,226 requests on ISIN and CFI codes of foreign financial instruments (including requests on the same instrument sent by different clients). By the end of September 2013 information about 24,590 instruments was provided to the market participants; out of them 21,019 instruments conform to the FFMS qualification requirements.
Note
Value of securities held in NSD accounts is an operational indicator which does not include the market value of balance of assets held in issuers’ accounts and treasury securities 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.