OREANDA-NEWS.  January 25, 2012. National Settlement Depository (NSD), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, has summed up its operating results for 2011.

NSD's customers’ cash accounts turnover and its securities turnover (the market value of securities transferred in inventory operations) for 2011 reached record figures: RUB239.6 trillion and RUB95.9 trillion correspondingly. It is 37.4% and 41.5% more than for 2010 (RUB174.4 trillion and RUB67.7 trillion respectively).

Eddie Astanin, Chairman of the Executive Board, NSD, said: "In general we are happy with the results of our operations, as 2011 was the first year of NSD's full functioning after integration of NDC and MICEX SH. We consider our high customers' satisfaction index as one of the most important factors in 2011. It became a benchmark for NSD for 2012."

Cash settlements

Cash settlements on MICEX Group's markets at the market closing prices

In 2011 the aggregate turnover of trading accounts for provision of settlements between participants in MICEX Group's on-exchange markets amounted to RUB150.7 trillion, including:
on stock exchange market: RUB81.33 trillion (31% growth against 2010);
on governmental securities market: RUB29.9 trillion (increased by 49.7% against 2010);
on derivatives market : RUB1.637 trillion (decreased by 26% against 2010)

Operations held via the Bank of Russia's settlement network

In 2011 the turnover of NSD's correspondent account with the Bank of Russia increased by 58.2% against the previous year reaching RUB255.6 trillion.

The number of payments conducted via NSD's correspondent account with the Bank of Russia for 2011 increased by 27.4% in comparison with 2010 (683,940 payments).

In 2011 the turnover of NSD's correspondent account with the Bank of Russia using its RTGS system, Banking Electronic Speedy Payments (BESP) system rose by 82.6% against 2010 and reached RUB162.3 trillion.

The number of executed payments conducted via NSD's correspondent account with the Bank of Russia using the BESP system grew almost four fold amounting to 82,555 payments.

A significant increase in the number of operations conducted using the BESP is mainly caused by technologic improvement of the software and enhancement of the settlement services in the course of conducting of payments through the system.

Securities safekeeping and servicing

The value of securities in depository accounts opened with NSD increased 5.5% amounting to RUB8.139 trillion (as of 31 December, 2011) compared with the 2010 figure of RUB7.718 trillion. The market value of Russian issuers' shares on deposit with NSD as of 31 December, 2011, reduced by 9.1% due to crisis situation in financial markets (MICEX Index dropped 16.9% for the reporting period). Increase in aggregate nominal value of corporate and regional bonds on deposit with NSD for 2011 was 10.7% and reached RUB3.328 trillion; nominal value of Eurobonds on deposit with NSD grew by 29.8% to RUB205 billion, and UIT units’ value grew by 97.1% reaching RUB111.554 billion.

The total number of securities on deposit with NSD grew by 27.1% from 2.02 trillion as of 31 December, 2010, to 2.56 trillion as of 31 December, 2011. The number of inventory operations for 2011 did not change against 2010; it reached 2,724,947 operations. 

The number of issuers which securities were serviced by NSD amounted to 2,060; this is 30.8% more against 2010. The total number of securities issues serviced by NSD in 2011 reached 4,193; it makes 28.3% growth against the data as of 31 December, 2010. At the same time the number of foreign issuers' Eurobonds serviced by NSD increased by 83.2% reaching 524. The number of foreign issuers' shares serviced by NSD grew from 19 to 179 issues as of 31 December, 2011. Number of depository accounts for 2011 amounted to 2,065 accounts including accounts opened by legal entities-non-residents; this is 8.6% growth since the beginning of 2011.

The value of DVP transactions held by the participants in OTC market using NSD's correspondent accounts opened with Clearstream and Euroclear for 2011 reached RUB96.066 billion; this is 74% more than for 2010 (RUB55.206 billion). In 2011 the number of DVP transactions conducted increased by 60.4% against 2010 and amounted to 1,054 operations; 1,024 of them were represented by operations with bonds, 24 of them were conducted with shares. 968 operations were held with bonds in US dollars.

The value of NSD's internal DVP operations held in 2011 17.4% grew against 2010 from RUB37.2 billion to RUB43.7 billion. The number of NSD's internal DVP operations conducted in 2011 dropped 25.7% compared with the same indicator a year earlier (from 315 to 234 operations).

NSD remains the leading Russian paying agent on corporate and regional bonds. As of 31 December, 2011, its share in the market of paying agent's services was 41.73% on basis of all number of corporate and regional securities issues in circulation, and 44.54% based on the number of issuers of corporate and regional securities in circulation. For 2011 NSD being a paying agent accepted for servicing 110 bond issues of 56 issuers. As of 1 January, 2012, the total number of bond issues serviced by NSD as a paying agent amounted to 338 issues of 159 issuers.

For 2011 NSD made 767 payments as income on corporate and regional bonds and on the Bank of Russia's bonds for a total sum of RUB1.35 trillion (this is by 1.4% more than for the same period of 2010 – 651 payments for RUB1.331 trillion). The company also paid RUB18.88 billion as income on registered securities (dividends, UITs income, revenues from repurchase of shares); this is by 10.4% more than the same indicator for 2010 (RUB17.105 billion).

The sum of Eurobonds' coupon and maturity payments for 2011 amounted to:
Ruble payments: RUB3.914 billion
Euro payments: Ђ54.143 million
US dollar payments: USD 548 million
British pound payments: Ј3,700

Being Russia's National numbering agency, NSD assigns ISIN and CFI codes to Russian financial instruments, submits information about assigned codes to the international database and updates the international database with regard to Russian ISIN and CFI codes.

For 2011, NSD assigned international ISIN and CFI codes to 995 Russian financial instruments and withdrew ISIN codes from 409 Russian securities.

In 2008 the Federal Financial Markets Service's Provision for Foreign Financial Instruments as Securities approved by FFMS Order #07-105/pz-n of Oct. 23, 2007, came into effect. According to this document NSD, acting as a member of Association of National Numbering Agencies (ANNA), provides services related to qualification of foreign financial instruments as securities to stock market participants.

For all the time of contributing to qualification of foreign financial instruments, NSD received and processed 55,504 requests on ISIN and CFI codes of foreign financial instruments (including requests on the same instrument sent by different clients). By the end of 4Q 2011 information about 20,737 instruments was provided to the market participants; out of them 17,396 instruments conform to the FFMS qualification requirements.