Report on the Description of the National Settlement Depository Controls, Suitability of Controls Design and Operating Effectiveness,
12 October, 2015
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trades with securities involving international settlement and clearing organisations
(Euroclear and Clearstream);
Accepting and executing settlement documents in roubles and foreign currencies;
Controlling cash movements on Company's NOSTRO accounts in roubles and foreign
currency; and
Performing functions of a currency control agent regarding clients' transactions.
General Economic Department. GED employees are responsible for invoicing the clients and
monitoring the payment of invoices.
IT Development Department. The Department's key functions include:
Drafting and seeking approval of terms of references;
Organising and carrying out activities on upgrading, testing, implementing and supporting
software;
Analysing and locating emergencies/incidents arising in the course of software operation;
Planning development of hardware and software systems at NSD, budget planning and
procurement of equipment and software; and
Communicating with the Moscow Stock Exchange Group on matters related to joint
development of software.
IT Maintenance Department is responsible for supporting Company's operations as related to
the use of information technologies and systems. Due to the fact that a substantial part of the
Company's activities, including many of its control procedures built in business processes,
depends on information systems, this Department, along with the Company's operations
business units, should be considered as a key department in terms of supporting the work
process.
The Company follows the principle of segregation of employees' duties and powers when they
perform significant tasks as part of business processes at all levels of the organisation. This
principle is documented in the Company's internal regulations, including employees' job
descriptions, and implemented as part of the procedures to be performed and employees' rights
of access to information systems. The authority to perform the most significant tasks is given to
the heads of organisational units. The Internal Control Department is independent of the
Executive Board; it reviews whether the powers segregation principle is followed, and analyses
whether Company's activities comply with legislative and regulatory requirements. For some
transactions, it is required to get approval from the Legal Department and (or) Risk
Management Department.
Corporate governance
The corporate governance at NSD covers the overall management of the Company’s activities by
NSD's General Meeting of Shareholders and Supervisory Board, as well as relations with NSD’s
executive bodies and other stakeholders (i.e., employees, customers, partners, counterparties,
banking regulatory and supervisory authorities, and other government authorities and agencies)
related to:
Setting strategic objectives for NSD and implementing an effective governance system;
Providing proper incentives for NSD’s management and employees to pursue NSD’s
strategic objectives;
