The National Settlement Depository in Russia has now published its results for the first quarter of the year, and the picture they paint is one of increases more or less across the board.
The number of transactions registered with the NSD’s Repository reached 135.7 thousand, for example; this was almost a 60 percent increase as compared to the same period of 2015 (85.6 thousand). However, the value of registered transactions remained the same: RUB 91.2 trillion in Q1 2016 against RUB 92.9 trillion in Q1 2015.
The largest number of transactions registered in Q1 2016 included transactions with the following types of instruments:
Currency forward (97,202);
Currency swap (29,323);
OTC repo (4,350).
For comparison, the following types of transactions were mostly registered in Q4 2015:
Currency forward (80,740);
Currency swap (34,534);
Share option (6,591).
In Q1 2016, 322 shareholder meetings were held with the use of the new e-proxy voting technology based on ISO 20022.
819 corporate actions on foreign securities were held in the reporting period; this is 85 percent more than in Q1 2015 (443 corporate actions).
The number of commercial services agreements increased by 15 percent (286 agreements). In Q1 2016, the Valuation Centre accounted for the biggest growth of client number; the number of users who subscribed for the Valuation Centre’s information doubled and amounted to 46 companies. Due to the expansion of the Valuation Centre’s data distribution channels supported by Thomson Reuters, Interfax and Cbonds, the Centre’s network spread to more jurisdictions, such as the USA, the UK, Hong Kong, India and Singapore.
NSD continues to develop the nsddata.ru information portal. It will be a single point of access to all information services and will allow to customize and import data in a modern way, as well as to use the flexible system of fees for the company’s commercial products. The nsddata.ru portal is to be launched in July 2016.
In Q1 2016, the value of money transfers increased by 3.2 percent against the same period of 2015 and reached RUB 82.3 trillion (RUB 79.8 trillion in Q1 2015).
In the reporting period, the company introduced a new service allowing to process client cross-currency settlements – payment versus payment (PVP-1). PVP is a cash settlement principle increasing the reliability of settlements and assuming that a participant’s cash transfer in one currency occurs if another participant’s cash transfer in another currency takes place simultaneously.
National Numbering Agency and pre-Local Operating Unit (pre-LOU)
NSD acts as Russia’s Numbering Agency and the substitute numbering agency for the CIS countries, assigning ISINs and CFIs. NSD also functions as a pre-Local Operating Unit (pre-LOU). Legal Entity Identifiers (LEIs) assigned by NSD are recognised by regulators, market participants and pre-LOUs of other countries.
In Q1 2016, NSD assigned 17 LEIs; it was less than in Q1 2015 (118 codes). The company also verified 76 LEIs. It exceeded the previous year’s figure (13 LEIs) due to the expiration of the one-year validity period of LEIs and to LEI owners’ obligation to update the codes. One LEI was accepted for servicing from another pre-LOU.
In the reporting period, NSD assigned 334 ISINs and CFIs to Russian financial instruments (228 codes in Q1 2015); in addition, as a substitute numbering agency, NSD assigned 124 ISINs and CFIs.