OREANDA-NEWS. July 13, 2012. National Settlement Depository (NSD), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, announces its operating results for 1H 2012 according to Russian Accounting Standards (RAS).

NSD’s customers’ cash accounts turnover and its securities turnover (the market value of securities transferred in inventory operations) increased to RUB125.162 trillion and RUB60.127 trillion accordingly. It is 160% and 67.6% more than in 1H 2011 (RUB48.137 trillion and RUB35.88 trillion respectively).

Eddie Astanin, Chairman of the Executive Board, NSD, said:“NSD's positive performance indicators demonstrate that we succeed in resolving challenges of the business continuity processes, increasing efficiency of settlements and improving quality of services in spite of the complex process of integrating two depositories. I am confident that we will achieve the strategic goals set by our shareholders.”

NSD's revenues for 1H 2012 according to RAS reached RUB5.9 billion, this is almost twice as many compared with the same period of 2011 (RUB3.01 billion for 1H 2011). The company's 1H 2012 expenditures stood at RUB4.109 billion; this is 130% more than for the comparable period of 2011 (RUB1.815 billion).

The company's net profit for 1H 2012 46.5% grew against 1H 2011, reaching RUB1.75 billion (RUB1.195 billion).

NSD's total equity amounted to RUB5.02 billion as of 1 July 2012 (RUB6.055 billion as of 1 January 2012). This decrease is attributable to dividend payment which took place in June 2012 following the decision made by the company's shareholders at the AGM conducted 25 May 2012.

Cash settlements

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

In 1H 2012 the aggregate turnover of trading accounts for provision of settlements between participants in Moscow Exchange Group's and SPCEX's on-exchange markets amounted to RUB59.86 trillion, including:
on stock exchange market: RUB53.687 trillion (50.6% growth against 1H 2011);
on SPCEX stock exchange market: RUB3 billion;
on governmental securities market: RUB5.287 trillion (decreased by 55.1% against 1H 2011);
on derivatives market : RUB883 billion (increased by 23.7% against 1H 2011)

Operations held via the Bank of Russia's settlement network

In 1H 2012 the turnover of NSD's correspondent account with the Bank of Russia increased by 115% against 1H 2011, reaching RUB196.883 trillion.

The number of payments conducted via NSD's correspondent account with the Bank of Russia for 1H 2012 dropped by 0.7% in comparison with 1H 2011 (299,863 payments).

In 1H 2012 the turnover of NSD's correspondent account with the Bank of Russia using its RTGS system, Banking Electronic Speedy Payments (BESP) system rose by 206% against 1H 2011 and reached RUB153.151 trillion.

The number of executed payments conducted via NSD's correspondent account with the Bank of Russia using BESP system grew by 82% against 1H 2011, standing at 56,326 payments.

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

Securities safekeeping and servicing

The value of securities in depository accounts opened with NSD as of 30 June 2012 increased 6% in comparison with the same indicator as of 31 December 2011 (RUB8.139 trillion); it reached RUB8.626 trillion. The market value of Russian issuers' shares on deposit with NSD as of 30 June 2012 grew by 7.2% (RUB1.706 trillion). Increase in aggregate nominal value of corporate and regional bonds on deposit with NSD for 2011 was 6.1% and reached RUB3.532 trillion; nominal value of Eurobonds on deposit with NSD increased by 0.6% to RUB206.319 billion, and UIT units’ value reduced by 38.8% reaching RUB68.217 billion.

The total number of securities on deposit with NSD grew by 75% from 2.562 trillion as of 31 December 2011 to 4.482 trillion as of 30 June 2012. The number of inventory operations for 1H 2011 decreased by 10.1% against the comparable period of the previous year; it reached 1,216,277 operations. 

The number of issuers which securities were serviced by NSD amounted to 2,423; this is 17.6% more against early 2012. The total number of securities issues serviced by NSD reached 4,799; it makes 14.5% growth against the data as of 31 December 2011. At the same time the number of foreign issuers' Eurobonds serviced by NSD increased by 18.9%, reaching 623. The number of foreign issuers' shares serviced by NSD grew from 179 to 198 issues as of 30 June 2012. Number of depository accounts opened by foreign issuers since the beginning of 2012 amounted to 1,924 accounts, decreasing by 6.6%.

The value of DVP transactions held by the participants in OTC market using NSD's correspondent accounts opened with Clearstream and Euroclear in 1H 2012 reached RUB73.906 billion; this is twice as many compared with the same indicator for 1H 2011 (RUB36.78 billion). In 1H 2012 the number of DVP transactions conducted increased by 29.8% against 1H 2011 and amounted to 606 transactions; 8 of them were represented by operations with shares, 595 of them were conducted with bonds. 558 transactions were held with bonds in US dollars.

The value of NSD's internal DVP transactions held in the first six months of 2012 decreased by 1.3% against 1H 2011 from RUB28.224 billion to RUB27.868 billion. The number of NSD's internal DVP transactions conducted in 1H 2012 dropped by 23.8% compared with the same indicator a year earlier (from 122 to 93 transactions).

In 1H 2012 the value of external FOP transactions held by the participants in the OTC market was RUB1.207 trillion; this is by 26.8% less against the comparable indicator for 1H 2011 (RUB1.649 trillion). The number of external FOP transactions conducted in 1H 2012 dropped by 31.7%, amounting to 50,029 transactions.

The value of NSD's internal FOP transactions held by the participants in the OTC market grew to RUB1.825 trillion for the reporting period; this is 57.8% more than for 1H 2011 (RUB1.157 trillion). The number of NSD's internal FOP transactions rose 29.2% against 1H 2011 (from 24,680 to 31,893 transactions).

NSD remains the leading Russian paying agent on corporate and regional bonds. As of 1 July 2012, its share in the market of paying agent's services was 41.5% on basis of all number of corporate and regional securities issues in circulation, and 43.91% based on the number of issuers of corporate and regional securities in circulation. For 1H 2012 NSD as a paying agent accepted for servicing 37 bond issues of 26 issuers. As of 1 July 2012, the total number of bond issues serviced by NSD as a paying agent amounted to 349 issues of 155 issuers.

In 1H 2012, NSD made 219 payments as income on registered securities (dividends, UITs income, revenues from repurchase of shares) in the sum of RUB6.006 billion (this is by 260% more than the same indicator for 1H 2011 — RUB1.678 billion) and 444 payments in the sum of RUB110.435 billion as income on corporate and regional bonds (this is by 90.6% less than for the same period of 2011 – 363 payments for RUB1.176 trillion). A decrease in the amount of payments held by NSD as a paying agent is to be take place during redemption of issues which were registered or to which the identification numbers were assigned prior to 1 January 2012 (due to a changed procedure of payment on equity securities with mandatory centralized custody which were registered or to which the identification numbers were assigned prior to 1 January 2012, and on the federal state equity securities with mandatory centralized custody regardless of their registration date). In compliance to the above mentioned changed procedure, in 1H 2012, NSD as a depository providing services of mandatory centralized custody, made 39 payments as income on bonds for the total sum of RUB160.563 billion.

The sum of Eurobonds' coupon and maturity payments for 1H 2012 amounted to:
Ruble payments: RUB3.392 billion
Euro payments:  34 million
US dollar payments: USD 462 million
British pound payments: Ј979,000

Being Russia's National numbering agency, NSD assigns ISIN and CFI codes to Russian financial instruments, submits information about assigned codes to the ANNA international database and updates the international database with regard to Russian ISIN and CFI codes. For 1H 2011, NSD assigned international ISIN and CFI codes to 269 Russian financial instruments and withdrew ISIN codes from 185 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 57,964 requests on ISIN and CFI codes of foreign financial instruments (including requests on the same instrument sent by different clients). By the end of 1H 2012 information about 21,169 instruments was provided to the market participants; out of them 17,721 instruments conform to the FFMS qualification requirements. 

Note

Value of securities held in NSD 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.

The volume of transactions conducted by OTC market participants is calculated on the basis of transferred securities' market value using NSD's methodology.