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

NSD’s customers’ cash accounts turnover and its securities turnover (the market value of securities transferred in inventory operations) for nine months of 2011 increased to RUB166.46 trillion and RUB58.245 trillion accordingly. This is 31% and 20% more than for 9M 2010 (RUB126.945 trillion and RUB48.545 trillion respectively).

NSD's revenues for 9M 2011 in compliance with RAS reached RUB5.131 billion; the company's expenditures for the same period amounted to RUB3.507 billion. The company's net profit amounted to RUB1.624 billion.

NSD's total equity amounted to RUB4.75 billion as of 1 October, 2011 (against RUB7.868 billion as of 1 January, 2011). A decrease in the company's equity capital is attributable to payment of dividends in May 2011 in compliance with a decision made by NSD's annual general meeting of shareholders on 26 April.

Eddie Astanin, Chairman of the NSD's Executive Board, said: "I would like to emphasis that NSD, being a settlement depository, developed settlement services, as well as internal and external DVP in the OTC market. A number of external operations based on DVP held through NSD's correspondent accounts with Clearstream and Euroclear increased by 50.9% in 3Q 2011 against 1Q 2011. Cross-border transactions are mainly settled in US dollars and Euro; in 2Q 2011 we suggested our clients to hold ruble settlements too."

Cash settlements

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

For 9M 2011 the aggregate turnover of trading accounts for provision of settlements between participants in MICEX Group's on-exchange markets reached RUB76.959 trillion, including:
RUB56.901 trillion in stock exchange market (27% growth against 9M 2010)
RUB18.904 trillion in governmental securities market (26% increase against 9M 2010)
RUB1.154 trillion in derivatives market (39% decrease against 9M 2010).

Operations held via the Bank of Russia's settlement network

The turnover of NSD's correspondent account with the Bank of Russia rose by 15% against 9M 2010 and reached RUB144.846 trillion.

For 9M 2011 the number of payments conducted via NSD's correspondent account with the Bank of Russia increased by 36% against the comparable period of 2010 and amounted to 510,471 payments.
The turnover of NSD's correspondent account with the Bank of Russia using its RTGS system, Banking Electronic Speedy Payments (BESP) system increased by 7% in comparison with 9M 2010 and reached RUB78.392 trillion.

For 9M 2011 the number of executed payments conducted via NSD's correspondent account with the Bank of Russia using the BESP system increased in 4,5 times amounting to 54,855 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

Value of securities in depository accounts opened with NSD amounted to RUB7.937 trillion as of 30 September, 2011. It is 2.8% more than as of 31 December, 2011 (RUB7.718 trillion as of 30 September, 2011). The market value of Russian issuers' shares on deposit with NSD reduced by 10.4% (for instance, MICEX Index 19% dropped for the same period). The aggregate nominal value of the corporate and regional bonds kept by NSD grew by 6.4%, value of Eurobonds increased by 5.3%, and value of UIT units raised by 66.1%.

The number of inventory operations in comparison with the comparable period of 2010 increased by 4% reaching 2,048,658 operations.

The number of issuers which securities were serviced by NSD was increased by 18.3% from the beginning of 2011 reaching 1,863 issuers. Total number of securities issues serviced by NSD grew by 17.7% since the beginning of this year and amounted to 3,845 issues. In the meantime the number of foreign issuers' Eurobond issues serviced by the company rose by 66.8% reaching 477 issues. The number of foreign issuers' shares grew from 19 to 136 issues as of 30 September, 2011. The number of depository accounts (including accounts opened by legal entities-non-residents) increased by 5.8% against the beginning of this year and amounted to 2,012 accounts.
The aggregate number of securities on deposit with NSD 12.2% grew (from RUB2.016 trillion as of 31 December, 2010, to RUB2.263 trillion as of 30 September, 2011).

The value of DVP transactions held by the participants in OTC market in 3Q 2011 reached RUB31.538 billion; this is 150% more than for 1Q 2011 (RUB12.563 billion).

In 3Q 2011 the number of DVP transactions conducted using NSD's correspondent accounts with Clearstream and Euroclear increased by 50.9% against 1Q 2011 and amounted to 335 operations; 320 of them were represented by operations with bonds, 13 of them were conducted with shares. 306 operations were held with bonds denominated in US dollars.
The number of NSD's internal DVP operations held in 3Q 2011 doubled against 1Q 2011 from 34 to 74 operations.

NSD remains the leading Russian paying agent on corporate and regional bonds. As of 1 October, 2011 its share in the market of paying agent's services was 43.02% on basis of all number of corporate and regional securities issues in circulation, and 45.2% based on the number of issuers of corporate and regional securities in circulation. For 9M 2010 NSD being a paying agent accepted for servicing 88 bond issues of 46 issuers. As of 1 October, 2011 the total number of bond issues serviced by NSD as a paying agent amounted to 339 issues of 160 issuers.

For 9M 2011 NSD made 552 payments as income on corporate and regional bonds and on the Bank of Russia's bonds for a total sum of RUB1.279 trillion (this is by 17.5% more than for the same period of 2010 – 470 payments for RUB1.88 trillion). The company also paid RUB15.808 billion as income on registered securities (dividends, UITs income, revenues from repurchase of shares); this is by 42.8% more than the same indicator for 2010 (RUB11.73 billion).

The sum of Eurobonds' coupon and maturity payments for the first nine months of 2011 amounted to:
Ruble payments: RUB2.415 billion
Euro payments: €18.4 million
US dollar payments: USD 400 million
British pound payments: GBP 3,700

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 9M of 2011, NSD assigned international ISIN and CFI codes to 698 Russian financial instruments and withdrew ISIN codes from 311 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 53,299 requests on ISIN and CFI codes of foreign financial instruments (including requests on the same instrument sent by different clients). By the end of 3Q 2011 information about 19,877 instruments was provided to the market participants; out of them 16,856 instruments conform to the FFMS qualification requirements.