Report on the Description of the National Settlement Depository Controls, Suitability of Controls Design and Operating Effectiveness,
12 October, 2015
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3. Company profile
National Settlement Depository performs the function of the Russian Central Depository and is
a member of the Moscow Exchange Group.
It provides services for on-exchange and OTC transactions with all types of securities of Russian
issuers as well as transactions with unit investment funds and foreign securities, and provides
settlement banking services, including cash settlement services to financial market participants
for their trades.
Foreign nominee accounts
After the corresponding part of the Federal Law "On the Central Securities Depository" came
into force and NSD was assigned the status of the Central Depository, it became possible for
foreign central securities depositories and international settlement and clearing systems to open
foreign nominee accounts with NSD. At the same time, foreign securities depositories were
allowed to open foreign nominee accounts with Russian depositories. The introduction of
foreign nominee accounts can significantly reduce risks that foreign investors are exposed to on
the Russian market and can ensure equal rights to local and foreign investors. Given that foreign
central securities depositories and international settlement and clearing systems are allowed to
open foreign nominee accounts, NSD will be able to continue the process of its integration into
the global settlement system by improving bilateral relations with the central securities
depositories of CIS countries, Euroclear, and Clearstream and by opening securities accounts for
new settlement institutions that had been unable to have a direct access to the Russian market
until the Central Securities Depository was established. NSD acts as the National Numbering
Agency in Russia and as the Substitute Numbering Agency for the CIS countries. In these roles,
it assigns ISIN, CFI and pre-LEI/LEI codes to securities. NSD is a direct member of the Banking
Electronic Speed Payment System of the Bank of Russia (BESP). The Central Securities
Depository status was assigned by Russia's Federal Financial Markets Service in its Order No.
12-2761/PZ-I of 6 November 2012. Professional Securities Market Participant License No. 177–
12042–000100 of 19 February 2009 to conduct depository activities was issued by the Bank of
Russia. License No. 3294 of 26 July 2013 to conduct banking transactions was issued by the
Bank of Russia. License No. 077–00004–000010 of 20 December 2012 to conduct clearing
activities was issued by the Bank of Russia.
Services provided by the Company
1.
Settlement and depository services
2.
Issuer services
3.
Clearing services
4.
Repository
5.
Collateral management
6.
Information services
7.
Related services
8.
Taxation
9.
Performing the functions of the Central Bank
Documents and licenses
The Company carries out its activities in accordance with the Articles of Association. The
Company details are entered into the Unified State Register of Legal Entities. The Company has
