MOSCOW - National Settlement Depository (NSD), Russia’s central securities depository, has summed up its operating results for 2012.
In 2012, NSD’s customers’ cash accounts turnover and its securities turnover (the market value of securities transferred in inventory operations) increased to RUB261.563 trillion and RUB143.543 trillion respectively. It is 9.2% and 49.7% more than for 2011 (RUB239.609 trillion and RUB95.885 trillion respectively).
Eddie Astanin, Chairman of the Executive Board, NSD, said: “In 2012, we were simultaneously implementing three key projects: preparation for and approval of the status of the central securities depository, integration of NSD, DCC and RTS Settlement Chamber, as well as introduction of new products and services. The high rate of growth of operating indicators shows that in this difficult situation NSD has successfully accomplished these tasks aimed at providing reliability and business continuity. We have succeeded in implementing these projects because of great team work and the high qualifications of NSD’s personnel, and as a consequence of the support of our shareholders, Supervisory Board and our customers.”
NSD's revenues for 2012 according to RAS reached RUB13.566 billion, this 73.7% more than as many compared with the same period of 2011 (RUB7.811 billion for 2011). The company's expenditures for 2012 stood at RUB10.018 billion; this is 82.1% more than for 2011 (RUB5.5 billion).
The company's net profit for 2012 50% grew against the previous year, reaching RUB3.548 billion (RUB2.31 billion for 2011).
NSD's total equity amounted to RUB6.003 billion as of 1 January 2013 excluding the events after the balance sheet date (it was RUB6.055 billion as of 1 January 2012 including the events after the balance sheet date).
Securities safekeeping, settlements and servicing
The value of securities in depository accounts opened with NSD as of 31 December 2012 increased 48% in comparison with the same indicator as of 31 December 2011 (RUB8.139 trillion) reaching RUB12.049 trillion. The market value of Russian issuers' shares on deposit with NSD as of 31 December 2012 grew by 170% (RUB4.296 trillion). The increase in aggregate nominal value of corporate and regional bonds on deposit with NSD for 2012 was 22.3% and reached RUB4.068 trillion; nominal value of Eurobonds on deposit with NSD increased by 13.8% to RUB223.36 billion, and UIT units’ value grew by 38.1% reaching RUB154.103 billion.
The number of securities on deposit with NSD increased sevenfold, reaching 18.119trillion securities as of 31 December 2012 (2.562 trillion securities as of 31 December 2011).
The number of issuers of securities serviced by NSD amounted to 3,707; this is 80% more against the beginning of 2012. The number of Russian issuers increased by 140%, amounting to 2,647. The total number of securities issues serviced by NSD reached 6,655; it makes 58.7% growth against the data as of 31 December 2011. The number of foreign issuers’ Eurobond issues increased by 35.7%, amounting to 711 issues. The number of foreign issuers' shares serviced by NSD grew from 179 to 214 issues, and the number of Russian issuers’ shares serviced by NSD grew from 1,658 to 3,655 issues as of 31 December 2012. The number of depository accounts including accounts opened by legal entities-non-residents, increased by 67.9% against the beginning of 2012 and stood at 3,467.
The number of inventory operations for 2012 decreased by 9.5% against the comparable period of the previous year; it reached 2,466,041 operations.
The value of DVP transactions held by the participants in OTC market using NSD's correspondent accounts opened with Clearstream and Euroclear in 2012 reached RUB210.231 billion; this is 119% more against the same indicator for 2011 (RUB96.066 billion). In 2012 the number of DVP transactions increased by 75.9% against 2011 and amounted to 1,854 transactions.
The value of NSD's internal DVP transactions held in the OTC market in 2012 increased by 54.2% against 2011 – from RUB43.691 billion to RUB67.368 billion. The number of NSD's internal DVP transactions conducted in 2012 increased by 10.7% compared with the same indicator for the previous year (from 234 to 259 transactions).
In 2012, the value of external FOP transactions held by the participants in the OTC market was RUB5.482 trillion; this is by 52.4% more against the comparable indicator for 2011 (RUB3.597 trillion). The number of external FOP transactions conducted in 2012 reduced by 26.7%, amounting to 100,112 transactions.
The value of NSD's internal FOP transactions held by the participants in the OTC market grew to RUB7.226 trillion for the reporting period; this is 130% more than for 2011 (RUB3.148 trillion). The number of NSD's internal FOP transactions rose 83% against 2011 (from 58,377 to 106,840 transactions).
Cash settlements
Cash settlements on Moscow Exchange Group's markets at the market closing prices
In 2012, the aggregate turnover of trading accounts for provision of settlements between participants in Moscow Exchange Group's and SPCEX's on-exchange markets amounted to RUB122.871 trillion, including:
- on stock exchange market: RUB115.682 trillion (42.2% growth against 2011);
- on SPCEX stock exchange market: RUB4 billion;
- on governmental securities market: RUB5.927 trillion (decreased by 80.2% against 2011);
- on derivatives market: RUB1.258 trillion (dropped by 23.2% against 2011).
Operations held via the Bank of Russia's settlement network
In 2012, the cash turnover in NSD's correspondent account with the Bank of Russia increased by 76.9% against 2011, reaching RUB452.121 trillion.
The number of payments conducted via NSD's correspondent account with the Bank of Russia for 2012 decreased by 1.6% in comparison with 2011 (672,876 payments).
In 2012, the turnover of NSD's correspondent account with the Bank of Russia using its RTGS system, Banking Electronic Speedy Payments (BESP) system rose by 121% against 2011 and reached RUB358.622 trillion.
The number of executed payments conducted via NSD's correspondent account with the Bank of Russia using BESP system grew by 57.3% against 2011, standing at 129,855 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 January 2013, its share in the market of paying agent's services was 37.71% on basis of all number of corporate and regional securities issues in circulation, and 40.32% based on the number of issuers of corporate and regional securities in circulation. For 2012 NSD as a paying agent accepted for servicing 57 bond issues of 35 issuers. As of 1 January 2013, the total number of bond issues serviced by NSD as a paying agent amounted to 356 issues of 150 issuers.
In 2012, NSD made 794 payments as income on registered securities (dividends, UITs income, revenues from repurchase of shares) in the sum of RUB31.01 billion (this is by 64.2% more than the same indicator for 2011 — RUB18.88 billion) and 869 payments in the sum of RUB287.016 billion as income on corporate and regional bonds (this is by 78.7% less than for 2011 – 767 payments for RUB1.35 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 134 payments as income on bonds for the total sum of RUB627.676 billion.
The sum of Eurobonds' coupon and maturity payments in 2012 amounted to:
- Ruble payments: RUB36.18 billion
- Euro payments: Ђ35 million
- US dollar payments: US$824 million
- British pound payments: Ј1.055 million
- Hong Kong dollar payments: HKD0.025 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 2012, NSD assigned international ISIN and CFI codes to 1,695 Russian financial instruments and withdrew ISIN codes from 417 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 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 contributing to qualification of foreign financial instruments, NSD received and processed 59,588 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 21,635 instruments was provided to the market participants; out of them 18,118 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 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.
About NSD
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, and license #3294 for bank operations issued by the Central Bank of the Russian Federation on 26 July 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: www.nsd.ru, or NSD Public Affairs Division: +7 495 232 0910, e-mail
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