Thomas Murray Data Services has maintained the CSD rating for Russia’s National Settlement Depository (NSD) at AA-, meaning it presents ‘Very Low Overall Risk’.
The overall rating reflects a weighted average of the eight risk components and translates as a very low risk exposure profile with a ‘Stable’ outlook. The ‘Stable’ outlook indicates that although there are some developments planned for 2016, these are not expected to impact the overall rating. However, the outlook for Asset Servicing Risk has been improved as “Positive” due to the corporate actions reform that NSD is undertaking to automate the corporate actions process and centralise the provision of corporate actions information. Although there were no changes to the overall ratings for any of the risk components, some criteria were upgraded as a result of the developments implemented by NSD within the last year, including:
The introduction of an additional batch for OTC settlements at NSD at 2.00pm;
The introduction of optional settlement in central bank funds;
The decrease in the proportion of OTC trades settled on a non-DVP (delivery versus payment) basis;
The introduction of e-proxy voting;
Enhancements to the Internal Audit team and methodology.