OREANDA-NEWS. October 12, 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 9M 2012. NSD’s customers’ cash accounts turnover and its securities turnover (the market value of securities transferred in inventory operations) increased to RUB191.267 trillion and RUB97.71 trillion respectively. It is 14.9% and 67.8% more than for the comparable period of 2011 (RUB166.46 trillion and RUB58.245 trillion respectively).

NSD's revenues for 9M 2012 according to RAS reached RUB9.114 billion, this is almost twice as many compared with the same period of 2011 (RUB5.131 billion for 9M 2011). The company's 9M 2012 expenditures stood at RUB6.327 billion; this is 80% more than for 9M 2011 (RUB3.507 billion).

The company's net profit for 9M 2012 71,5% grew against the comparable period of the previous year, reaching RUB2.786 billion (RUB1.624 billion for 9M 2011).

NSD's total equity amounted to RUB5.642 billion as of 1 October 2012 (it was RUB6.055 billion as of 1 January 2012). This decrease is attributable to dividend payment made in June 2012 pursuant to the company's AGM resolution dated 25 May 2012.


Securities safekeeping and servicing

The value of securities in depository accounts opened with NSD as of 30 September 2012 increased 14.3% in comparison with the same indicator as of 31 December 2011 (RUB8.139 trillion) reaching RUB9.302 trillion. The market value of Russian issuers' shares on deposit with NSD as of 30 September 2012 grew by 39.2% (RUB2.215 trillion). Increase in aggregate nominal value of corporate and regional bonds on deposit with NSD for 2011 was 10.3% and reached RUB3.669 trillion; nominal value of Eurobonds on deposit with NSD increased by 9% to RUB223.475 billion, and UIT units’ value reduced by 3.8% reaching RUB107.37 billion.

The number of issuers of securities serviced by NSD amounted to 3,340; this is 62.1% more against the beginning of 2012. The number of issuers of Russian shares doubled amounting to 2,316. The total number of securities issues serviced by NSD reached 6,046; it makes 44.2% growth against the data as of 31 December 2011. At the same time the number of foreign issuers' Eurobonds serviced by NSD increased by 32.1%, reaching 692. The number of foreign issuers' shares serviced by NSD grew from 179 to 205 issues as of 30 September 2012. The number of Russian issuers’ shares serviced by NSD grew from 1,658 to 3,203 issues as of 30 September 2012.

The number of inventory operations for 9M 2012 decreased by 11.1% against the comparable period of the previous year; it reached 1,820,723 operations.

The value of DVP transactions held by the participants in OTC market using NSD's correspondent accounts opened with Clearstream and Euroclear in 9M 2012 reached RUB136.88 billion; this is twice as many compared with the same indicator for 9M 2011 (RUB68.318 billion). In 9M 2012 the number of DVP transactions conducted increased by 41.5% against 9M 2011 and amounted to 1,135 transactions.

The value of NSD's internal DVP transactions held in the first nine months of 2012 increased by 31.9% against 9M 2011 – from RUB39.177 billion to RUB51.689 billion. The number of NSD's internal DVP transactions conducted for 9M 2012 dropped by 27.6% compared with the same indicator for the first nine months of the previous year (from 196 to 142 transactions).

In 9M 2012 the value of external FOP transactions held by the participants in the OTC market was RUB2.89 trillion; this is by 18.7% more against the comparable indicator for 9M 2011 (RUB2.434 trillion). The number of external FOP transactions conducted in 9M 2012 reduced by 27%, amounting to 75,182 transactions.

The value of NSD's internal FOP transactions held by the participants in the OTC market grew to RUB3.212 trillion for the reporting period; this is 44.7% more than for 9M 2011 (RUB2.22 trillion). The number of NSD's internal FOP transactions rose 26.5% against 9M 2011 (from 41,793 to 52.875 transactions).

Cash settlements

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

For the first nine months of 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 RUB90.835 trillion, including:
on stock exchange market: RUB83.705 trillion (47.1% growth against 9M 2011);
on SPCEX stock exchange market: RUB4 billion;
on governmental securities market: RUB5.638 trillion (decreased by 70.2% against 9M 2011);
on derivatives market: RUB1.257 trillion (increased by 8.9% against 9M 2011).

Operations held via the Bank of Russia's settlement network

For the first nine months of 2012 the turnover of NSD's correspondent account with the Bank of Russia increased by 120% against the comparable period of 2011, reaching RUB322.659 trillion.

The number of payments conducted via NSD's correspondent account with the Bank of Russia for 9M 2012 dropped by 3.3% in comparison with 9M 2011 (493,540 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 230% against 9M 2011 and reached RUB254.931 trillion.

The number of executed payments conducted via NSD's correspondent account with the Bank of Russia using BESP system grew by 65.7% against 9M 2011, standing at 90,882 payments. This significant increase is mainly attributable to the technologic improvement of NSD's software and enhanced settlement services in respect of conducting payments through the BESP system.

NSD remains the leading Russian paying agent on corporate and regional bonds. As of 1 October 2012, its share in the market of paying agent's services was 39.66% on basis of all number of corporate and regional securities issues in circulation, and 42.46% based on the number of issuers of corporate and regional securities in circulation. For the first nine months of 2012 NSD as a paying agent accepted for servicing 49 bond issues of 34 issuers. As of 1 October 2012, the total number of bond issues serviced by NSD as a paying agent amounted to 345 issues of 152 issuers.

In January-September 2012, NSD made 601 payments as income on registered securities (dividends, UITs income, revenues from repurchase of shares) in the sum of RUB25.943 billion (this is by 60% more than the same indicator for 9M 2011 — RUB15.808 billion) and 644 payments in the sum of RUB201.577 billion as income on corporate and regional bonds (this is by 84.2% less than for the same period of 2011 – 552 payments for RUB1.279 trillion). This 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 change of the above mentioned procedure, in the first nine months of 2012, NSD as a depository providing services of mandatory centralized custody, made 80 payments as income on bonds for the total sum of RUB497.647 billion.

The sum of Eurobonds' coupon and maturity payments in January-September 2012 amounted to:
Ruble payments: RUB3.723 billion
Euro payments: EUR 34 million
US dollar payments: USD 493 million
British pound payments: Ј1.05 million 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 9M 2011, NSD assigned international ISIN and CFI codes to 1,165 Russian financial instruments and withdrew ISIN codes from 269 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 58,376 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 2012 information about 21,412 instruments was provided to the market participants; out of them 17,710 instruments conform to the FFMS qualification requirements.