NSD Repository Announces First Mandatory Reporting Results
- 1 October — 8,832 transactions;
- 2 October — 5,179 transactions.
It should be noted that from 1 October participants also submit to the NSD Repository reports on four new instruments: bond options, bond forwards, equity options, as well as currency binary options.
In just two days of mandatory reporting, the NSD Repository processed more than 22,000 messages from its clients1.
Anastasia Kiseleva, Managing Director for Repository Operations, NSD, pointed out: “As expected, after the launch of mandatory reporting, the Repository's workload connected with submitting not just transaction reports, but also other information (updated details, providing power of attorneys and the receipt of LEIs among others) has increased tremendously. In the first days of receiving the reports, all systems worked steadily. There were no software failures or errors. Prior to the launch of mandatory reports, the Repository conducted numerous stress tests which confirmed that NSD was entirely ready for the increased workload. We now want to thank our clients who took part in testing the new version of message formats and contributed to developing and optimizing the Repository’s message formats.”
Submitting mandatory reports to the Repository
Starting 1 October 2015, in accordance with Russian law2, market participants shall submit reports on all types of derivative transactions concluded on the basis of Master agreements to the Repository. Before 1 October 2015, participants were obligated to report only on OTC repo transactions and currency swaps. In addition to information on the new agreements, market participants shall provide reports on agreements for derivative obligations which were not performed in full, if these agreements (transactions) were concluded after 11 August 2011. Information on agreements concluded before this date can be voluntarily submitted. Also, starting 1 October 2015, mandatory reports on margin sum payments and the calculation of the fair (estimated) value of claims and liabilities on transactions were introduced3.
The NSD Repository is the first and largest on the Russian market. Its client roster exceeds 1,150 market participants.
9M 2015 statistics for reports submitted to the Repository
From January to September 2015, the NSD Repository registered more than 315,000 agreements for derivatives and repo transactions, including transactions that did not have mandatory reporting. The value of transactions for which reports were submitted to the Repository within this period exceeded RUB 300 trillion.
The OTC transactions, which had the most frequent reports to the Repository in 9M 2015, include:
- Repo transactions – more than 15,000;
- Currency swaps – more than 140,000;
- Currency forwards – more than 150,000.
1 – In addition to the transactions registration, the NSD Repository receives information about other types of activities connected to the Reporsitory operations, such as: update of clients’ details, providing powers of attorneys, receipt of LEIs and others.
2 – Federal law № 39-FZ «On securities market» dated 11.04.1996, Bank of Russia Directive 3253-U dated 30.04.2015.
3 – Forms for agreements and reports are avauilable at the portal of message specifications of the NSD Repository (in Russian).