OREANDA-NEWS. Russian issuers’ bonds (61.3%) and equities (35.7%) account for the majority (97%) of liquid securities held by depositories. These data are available in the Bank of Russia Depository Operations Review for 2016 H1.

More than a half of the marketable securities are held on the accounts opened by depositories for financial institutions (banks and non-credit financial institutions – professional securities market participants, non-governmental pension funds, insurance companies, Vnesheconombank) and the Bank of Russia. The non-residents’ share is also significant – their individuals’ and corporate’ accounts make up 27.1% of total securities value.

The market structure underwent significant changes in the first half of the year due to the reduced number of depository chain links, withdrawal of some players who now fail to meet the capital ratios. The requirements enforced by the Bank of Russia from the beginning of the year are intended to assure transparency of accounting, strike off the depositories exposed to high risks.

This first-ever depository operations review includes general information on the accounting system structure, and provides an insight into the central securities depository, market regulation and recent legislative changes. The review is intended for a wide range of readers and aimed at improving financial literacy of consumers of financial services.