The Central Bank of the Russian Federation has recognized National Settlement Depository (NSD), Russia’s central securities depository, and National Clearing Centre (NCC) as systemically important infrastructure for Russia’s financial market.
NSD has been recognized by the Bank of Russia as a systemically important central securities depository, a systemically important settlement depository and a systemically important repository.
NCC has been recognized as a systemically important central counterparty.
Alexander Afanasiev, Chief Executive Officer of Moscow Exchange, said:
“Recognition of National Settlement Depository (NSD) and National Clearing Centre (NCC) – Moscow Exchange Group companies – as systemically important financial institutions underlines their special role in ensuring the stability of the Russian financial system. Both organisations have already been granted special status, and are subject to specific regulatory oversight: the regulator granted central securities depository status to the NSD in 2012, and the NCC was named as a qualified counterparty last year.
“The total value of securities on deposit at NSD is RUB 22.9 trillion; NCC has assets in excess of RUB 860 billion and its average daily clearing volume is RUB 1.2 trillion. Moscow Exchange Group recognizes its significant responsibility to provide for the functioning of the Russian financial markets infrastructure and deliver top-quality, modern services to Russian and international investors. Status as systemically important financial institutions also means there will be additional regulatory scrutiny of our activities and thus enhanced guarantees of reliability and transparency of our Group companies in the interest of all market participants.”
Eddie Astanin, Chairman of the Executive Board, NSD, said:
“The assigned status of systemically important infrastructure means the highest level of NSD’s responsibility to both the regulator and the market. I can say with certainty that NSD will comply with this status in respect to reliable functioning, risk management, financial stability and a competitive product and service range.”
Alexey Khavin, CEO of NCC, said:
”Status as a systemically important financial institution requires that we deliver even greater enhancement of the risk management system. I believe that for market participants this news is further demonstration of the reliability and financial strength of NCC as a partner that executes the function of central counterparty.”