MOSCOW - "The National Depository Center" (Closed Joint Stock Company) (NDC), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, has summed up its operating results for 2009.
The value of securities on deposit with NDC increased 47.35% amounting to RUB 6.086 trillion (as of 31 December, 2009) compared with the 2008 figure of RUB4.13 trillion. Growth of market value of Russian issuers' shares on deposit with NDC for 2009 reached 75.8%. Increase in aggregate nominal value of corporate and regional bonds on deposit with NDC for 2009 was 40.98%; nominal value of Russian and corporate Eurobonds on deposit with NDC 6.87% grew, and UIT units’ value decreased by 2%. The value of Bank of Russia's bonds on deposit with NDC increased more than 23 times reaching RUB290.661 billion as of 31 December, 2009.
Eddie Astanin, Director General, NDC, pointed out: "Despite crisis situation of the last year NDC retained positive dynamics of its main operational indicators' growth and innovative nature of our activities. Our shareholders', business partners' and our clients' support contributed a lot to NDC's successful operations."
In 1H 2009, NDC handled 74% of all securities on deposit among settlement depositories in Russia[1]. This confirms NDC’s leading position among Russia’s biggest settlement depositories.
NDC is the leading Russian paying agents on corporate and regional bonds. For 2009 NDC’s share in this market reached 34.74% basing on total number of corporate and regional bonds on deposit and 37.01% of the number of the issuers of corporate and regional bonds on deposit. In spite of crisis situation in 2009 NDC as a paying agent serviced 67 new bond issues of 37 issuers. For 2009 NDC serviced 266 bond issues of 172 issuers.
The number of securities issues serviced by NDC in 2009 reached 2,896. This was 4.97% more than in 2008. The number of issuers serviced by NDC amounted to 1,426; this is 5.55% more against 2008. Number of NDC’s depositors decreased 1.8% and amounted to 892; the company attracted 98 new depositors. Number of depository accounts for 2009 6.61% grew amounting to 1,904 accounts including accounts of non-residents.
NDC's securities turnover (the market value of securities transferred in inventory operations) reached RUB60.061 trillion for 2009. This is 1.51% less than for 2008 (RUB60.98 trillion).
The number of inventory operations conducted by NDC for 2009 2.17% decreased and amounted to 2.483 million, including 1.974 million operations with shares (79.51% of all operations). Number of securities on deposit with NDC reduced 8.68% (from 2.301 trillion as of 31 December, 2008 to 2.101 trillion as of 31 December, 2009).
For 2009 NDC provided depository services associated with 3,132 corporate actions of the issuers whose securities were on deposit with NDC including 600 payments in the sum of RUB147.6 billion to 22,956 owners of the corporate and regional bonds (RUB129.4 billion for 2008). NDC has also made payments for RUB10.634 billion as an income on registered securities to 466,221 shareholders and UITs units' owners (dividends and income on closed-end UITs units, funds from redemption of shares and UITs units). This is 17.1% more than for 2008 (RUB9.082 billion). NDC received and transferred to its depositors an amount in foreign currencies equivalent to RUB40.013 billion as payments on foreign securities.
In 2009 NDC for the first time in its history provided depository services associated with 25 corporate actions of the issuers of foreign financial instruments. There are no analogous corporate actions used in Russian legal and market practice. These actions included voting of Eurobonds owners in the course of regular/extraordinary meetings on decisions (with or without compensation paid), certification of Eurobonds owners, voluntary early redemption and buy back of Eurobonds (with or without compensation paid), exchange/conversion of Eurobonds and participation in Dutch auction.
For 2009, in its role as Russia’s national numbering agency, NDC assigned international ISIN and CFI codes to 727 Russian securities and withdrew ISIN codes from 261 Russian securities. Since October 2009 the company assigns ISIN codes to additional share issues; in October-December 2009 NDC assigned ISIN codes to 71 additional share issues and withdrew ISIN codes from nine additional share issues (as individual numbers (codes) of these additional share issues were canceled, and the additional share issues were attached to their primary share issues).
Russian Federal Financial Markets Service’s “Regulations for Foreign Financial Instruments as Securities” approved by FFMS Order #07-105/pz-n of Oct. 23, 2007, has been put into effect in 2008. According to the Regulations NDC being a member of the Association of National Numbering Agencies (ANNA) provides to the stock market participants services aimed at qualification of foreign financial instruments as securities.
For 2009 NDC received and processed approximately requests on ISIN and CFI codes of 9,185 financial instruments (including requests on the same instrument sent by different clients). In the course of processing, the company determined that there were requests for information on 1,213 instruments.
From 1 January, 2008 to 31 December, 2009 NDC received and processed requests on ISIN and CFI codes of approximately 33,215 financial instruments (including requests on the same instrument sent by different clients). In the course of processing, the company determined that there were requests for information on 10,767 instruments for this period. It was determined that 783 instruments did not have CFI codes including 221 instruments which also did not have ISIN codes. A further 238 instruments had CFI codes which did not conform to ISO 10962 and the Federal Financial Markets Service’s qualification requirements. Another 9,746 instruments had CFI codes which conform to the FFMS qualification requirements for foreign financial instruments, including 24 CFI codes assigned with NDC's assistance. Thus the number of foreign financial instruments which conform to the FFMS qualification requirements increased 19.16% against 2008 (8,179 instruments as of 31 December, 2008), and the number of foreign financial instruments which do not conform to the FFMS qualification requirements decreased 25.75%.
NDC expands its product range and improves an access to settlement and depository services for the company's customers.
- In 3Q 2009 NDC implemented a new service which is being implemented through NDC depositor work stations which will be able to access the system with a web browser and additional LUCH software. NDC provides a promotional period in order to advertise the new services and to allow time for full integration of the services into the internal automated systems of EDI participants. The new service will not replace current NDC communications channels. It provides guaranteed order delivery, allows EDI participants to follow order status and to offer fast access to information on securities balance.
- On September 25, 2009 NDC and SWIFT signed an Agreement which allows NDC’s counterparties to access SWIFT and securities settlement infrastructure through a new channel based on Alliance Lite internet technologies. Alliance Lite provides easy, secure and low-cost access to SWIFT. Advance technical works will be completed in 1Q 2010.
- From 15 June, 2009 NDC and MICEX Settlement House began offering a new service allowing the conduct of DVP settlements using NDC's and MICEX Settlement House’s accounts opened with Euroclear Bank's international central depository. In this settlement scheme, NDC is responsible for the securities record, and MICEX Settlement House controls the flow of funds. As of 31 December, 2009 19 depositors opened foreign currency accounts with MICEX Settlement House; the companies held 230 transactions for the dollar equivalent of RUB640.206 million.
- NDC jointly with MICEX has developed and implemented technologies of DVP-3 settlements on the Bank of Russia's REPO transactions on the OTC market with Eurobonds included in the Bank of Russia's Lombard List
Note:
Value of securities held in NDC 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 NDC
"The National Depository Center" (Closed Joint Stock Company) is the largest settlement depository in Russia, servicing the full range of debt and equity securities of Russian issuers. NDC 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, and more than 99% of stock exchange transactions with equities and OTC trades. The international rating agency Thomas Murray has assigned NDC an АА- rating as a central depository. NDC is Russia's national numbering agency, and the substituting numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.
Among NDC’s shareholders are MICEX (50,1727% of shares), Bank of Russia (42,2997% of shares) as well as GPB (OJSC) (Gazprombank), Evrofinance Mosnarbank, “ROSBANK” (OJSC JSCB), JSC VTB Bank, Bank of Moscow, JSC «ROSSIYSKIY KREDIT BANK», Vnesheconombank, “ING BANK (EURASIA) ZAO”, CB “J.P. Morgan Bank International” (LLC), ZAO UniCredit Bank, Deutsche Bank Ltd, and Sberbank. NDC has stakes in Depository Clearing Company CJSC (37.29%) and in Settlement Depository Company CJSC (28.54%).
For further information about NDC: www.ndc.ru, or NDC Public Affairs Division: +7 495 232 0910,
[1] According to PARTAD Infrastructure Institute