On the Up at the NSD
August 1, 2017

Russia's central securities depository has released its 2017 results. Highlights include:

1,955 shareholder meetings were initiated via e-proxy voting technology;

The value of assets under custody grew 10 percent and reached RUB 35.5 trillion;

Value of OFZ balances in foreign nominee accounts increased by 40 percent year-on-year and reached RUB 1.8 trillion.

Central Securities Depository

In Q2 2017, the value of securities under custody reached RUB 35.3 trillion – this was a 10 percent increase as compared with Q2 2016 (RUB 32.2 trillion). The number of security issues serviced by the NSD grew by a third, from 10.2 thousand in Q2 2016 to 13.5 thousand in 2017.

JSC Transfingroup Asset Management Company (TFG AMC) and JCB Absolut Bank (PJSC) became the first companies in the Russian market to have conducted a transaction via the centralized system for record-keeping and distributing Unit Investment Trust (UIT) units. The system was developed by the NSD. To date, seven companies have connected to the system, and seven other firms are using it in trial mode.

The number of inventory operations in the central securities depository (CSD) increased 10 percent and reached 708 thousand operations in Q2 2017 (compared with 642 thousand in Q2 2016), including 555 thousand exchange trade operations (+7 percent; 515 thousand operations in Q2 2016) and 154 thousand OTC trade operations (127 thousand operations in Q2 2016).

In Q2 2017, the value of off-exchange DVP transactions grew substantially and amounted to RUB 1.7 trillion. This was 45 percent more than in Q2 2016 (RUB 1.2 trillion).

The value of balances of Federal Loan Bonds (OFZ) in foreign nominee accounts amounted to RUB 1.8 billion – a 40 percent increase as compared with Q2 2016 (RUB 1.3 billion).

Three commercial bond programmes for a total maximum amount of RUB 1.3 billion and six issues for a total amount of RUB 265 million were registered. The placement of four issues for a total sum of RUB 175 million was completed.

In Q2 2017,the NSD launched new services as part of securities settlement issues: Prioritization and Linked Transactions services.the NSD clients also began conducting DVP settlements in central bank money with the use ofthe NSD's DVP service via BESP. ZENIT Bank became the first user of the service.

The Collateral Management System (CMS)

The value of repo transactions which the Federal Treasury performed using the NSD collateral management system reached RUB 10.2 trillion in Q2 2017 – a 7 percent increase as compared with the same period of the previous year (RUB 9.5 trillion). The number of transactions was 580 or by 13 percent more than in Q2 2016 (509 transactions). A composition of collateral available for the first part of repos was expanded by means of adding OFZs during coupon payment periods.

In Q2 2017, the value of repo transactions with the Bank of Russia performed using the NSD collateral management system stood at RUB 208 billion.

Repo transactions with the Bank of Russia with the use ofthe NSD's collateral management system and settlements.

The first inter-dealer repo transaction with securities basket and with the use ofthe NSD's CMS was conducted in the Bloomberg system on the OTC market.the NSD set a promotional period for collateral management services until 30 June 2018.

Repository

In Q2 2017, the number of trades registered with the NSD's Repository reached 2.7 million (107 thousand in the same period of 2016). The value of the transactions registered was RUB 120.7 trillion (RUB96.2 trillion in Q2 2016).

In Q2 2017, the top three instruments in terms of the number of reported transactions included:

FX forwards 111,405;

FX swaps 59,753*;

OTC repos 2,552,411*.

* Of these 2,408,886 repos and 22,066 FX swaps were reported to the repository via the special bulk format.

For comparison, the top three instruments in terms of the number of reported transactions in Q2 2016 included:

FX forwards 64,536;

FX swaps 32,954;

OTC repos 4,193.

Corporate Actions Centre

In Q2 2017, 1,955 shareholder meetings were held using the e-proxy voting technology and in the ISO 20022 format. 21 meetings of bondholders, 79 repurchases of shares and ten corporate actions to exercize the right to purchase placed shares were also initiated.

Totally, 5,512 corporate actions involving Russian securities were conducted in Q2 2017; this was 5 percent more than in the previous year (5,256 actions).

3,762 corporate actions involving foreign securities were conducted in Q2 2017 – an 81 percent increase as compared to the same period of 2016 (2,073 corporate actions).

The e-voting technology was successfully tested as part of the AGM of Sberbank: for the first time, 99 shareholders of Sberbank used the option to receive the materials of the shareholders meeting remotely and to vote online at the AGM held on 26 May. In total, 806 shareholders representing 33.3 percent votes of the total number of voting shares used the e-proxy voting technology at the AGM.

NSD was named the winner of Russia's Elite of the Securities Market Awards founded by the National Association of Securities Market Participants (NAUFOR). The depository won in the category "Best Project Focused on Stock Market Development" for its e-voting project.

Information Services

In Q2 2017, the number of information service users increased 26.2 percent as compared with Q2 2016 and reached 400 contracts.

In Q2 2017, a modern customized service for uploading data on issuers, securities and securities' fair values was launched via the NSD's API based on the www.nsddata.ru platform.

In September 2017, this advanced customized service for uploading data on issuers, securities and securities' fair values will fully replace the range ofthe NSD's commercial information products designed for uploading information into users' systems.

Payment and Settlement System

In Q2 2017, the value of money transfers grew 12.3 percent and reached RUB 92.4 trillion (compared with RUB 82.3 trillion in Q2 2016).

National and Substitute Numbering Agency and pre-Local Operating Unit (pre-LOU)

NSD acts as Russia's Numbering Agency and as the substitute numbering agency for CIS countries, assigning ISINs and CFIs.

The number of qualified foreign securities grew 64 percent in Q2 2017 and amounted to 1,583 securities (966 securities in Q2 2016).

NSD also has got a status of pre-Local Operating Unit (pre-LOU); it signed a master agreement with the Global Legal Entity Identifier Foundation (GLEIF) and became a candidate for accreditation as a LOU. LEIs assigned bythe NSD are recognized by regulators, market participants, pre-LOUs and LOUs of other countries.

In Q2 2017, the NSD assigned 13 new LEIs. It also verified 141 LEIs; this was 10 percent more than in Q2 2016.

In Q2 2017, the NSD assigned 242 ISINs and CFIs to Russian financial instruments.

Technological services:

In Q2 2017, two new users were provided with the technological access to SWIFT services via the NSD. The Service Bureau clients' average daily traffic increased 45 percent as compared with Q2 2016 and reached 8,666 thousand messages per day.

In the reporting period, the NSD took measures focused on ensuring the compliance with the SWIFT Service Bureau certification programme(SIP v2).





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Russia's central securities depository has released its 2017 results. Highlights include:

1,955 shareholder meetings were initiated via e-proxy voting technology;

The value of assets under custody grew 10 percent and reached RUB 35.5 trillion;

Value of OFZ balances in foreign nominee accounts increased by 40 percent year-on-year and reached RUB 1.8 trillion.

Central Securities Depository

In Q2 2017, the value of securities under custody reached RUB 35.3 trillion – this was a 10 percent increase as compared with Q2 2016 (RUB 32.2 trillion). The number of security issues serviced by the NSD grew by a third, from 10.2 thousand in Q2 2016 to 13.5 thousand in 2017.

JSC Transfingroup Asset Management Company (TFG AMC) and JCB Absolut Bank (PJSC) became the first companies in the Russian market to have conducted a transaction via the centralized system for record-keeping and distributing Unit Investment Trust (UIT) units. The system was developed by the NSD. To date, seven companies have connected to the system, and seven other firms are using it in trial mode.

The number of inventory operations in the central securities depository (CSD) increased 10 percent and reached 708 thousand operations in Q2 2017 (compared with 642 thousand in Q2 2016), including 555 thousand exchange trade operations (+7 percent; 515 thousand operations in Q2 2016) and 154 thousand OTC trade operations (127 thousand operations in Q2 2016).

In Q2 2017, the value of off-exchange DVP transactions grew substantially and amounted to RUB 1.7 trillion. This was 45 percent more than in Q2 2016 (RUB 1.2 trillion).

The value of balances of Federal Loan Bonds (OFZ) in foreign nominee accounts amounted to RUB 1.8 billion – a 40 percent increase as compared with Q2 2016 (RUB 1.3 billion).

Three commercial bond programmes for a total maximum amount of RUB 1.3 billion and six issues for a total amount of RUB 265 million were registered. The placement of four issues for a total sum of RUB 175 million was completed.

In Q2 2017,the NSD launched new services as part of securities settlement issues: Prioritization and Linked Transactions services.the NSD clients also began conducting DVP settlements in central bank money with the use ofthe NSD's DVP service via BESP. ZENIT Bank became the first user of the service.

The Collateral Management System (CMS)

The value of repo transactions which the Federal Treasury performed using the NSD collateral management system reached RUB 10.2 trillion in Q2 2017 – a 7 percent increase as compared with the same period of the previous year (RUB 9.5 trillion). The number of transactions was 580 or by 13 percent more than in Q2 2016 (509 transactions). A composition of collateral available for the first part of repos was expanded by means of adding OFZs during coupon payment periods.

In Q2 2017, the value of repo transactions with the Bank of Russia performed using the NSD collateral management system stood at RUB 208 billion.

Repo transactions with the Bank of Russia with the use ofthe NSD's collateral management system and settlements.

The first inter-dealer repo transaction with securities basket and with the use ofthe NSD's CMS was conducted in the Bloomberg system on the OTC market.the NSD set a promotional period for collateral management services until 30 June 2018.

Repository

In Q2 2017, the number of trades registered with the NSD's Repository reached 2.7 million (107 thousand in the same period of 2016). The value of the transactions registered was RUB 120.7 trillion (RUB96.2 trillion in Q2 2016).

In Q2 2017, the top three instruments in terms of the number of reported transactions included:

FX forwards 111,405;

FX swaps 59,753*;

OTC repos 2,552,411*.

* Of these 2,408,886 repos and 22,066 FX swaps were reported to the repository via the special bulk format.

For comparison, the top three instruments in terms of the number of reported transactions in Q2 2016 included:

FX forwards 64,536;

FX swaps 32,954;

OTC repos 4,193.

Corporate Actions Centre

In Q2 2017, 1,955 shareholder meetings were held using the e-proxy voting technology and in the ISO 20022 format. 21 meetings of bondholders, 79 repurchases of shares and ten corporate actions to exercize the right to purchase placed shares were also initiated.

Totally, 5,512 corporate actions involving Russian securities were conducted in Q2 2017; this was 5 percent more than in the previous year (5,256 actions).

3,762 corporate actions involving foreign securities were conducted in Q2 2017 – an 81 percent increase as compared to the same period of 2016 (2,073 corporate actions).

The e-voting technology was successfully tested as part of the AGM of Sberbank: for the first time, 99 shareholders of Sberbank used the option to receive the materials of the shareholders meeting remotely and to vote online at the AGM held on 26 May. In total, 806 shareholders representing 33.3 percent votes of the total number of voting shares used the e-proxy voting technology at the AGM.

NSD was named the winner of Russia's Elite of the Securities Market Awards founded by the National Association of Securities Market Participants (NAUFOR). The depository won in the category "Best Project Focused on Stock Market Development" for its e-voting project.

Information Services

In Q2 2017, the number of information service users increased 26.2 percent as compared with Q2 2016 and reached 400 contracts.

In Q2 2017, a modern customized service for uploading data on issuers, securities and securities' fair values was launched via the NSD's API based on the www.nsddata.ru platform.

In September 2017, this advanced customized service for uploading data on issuers, securities and securities' fair values will fully replace the range ofthe NSD's commercial information products designed for uploading information into users' systems.

Payment and Settlement System

In Q2 2017, the value of money transfers grew 12.3 percent and reached RUB 92.4 trillion (compared with RUB 82.3 trillion in Q2 2016).

National and Substitute Numbering Agency and pre-Local Operating Unit (pre-LOU)

NSD acts as Russia's Numbering Agency and as the substitute numbering agency for CIS countries, assigning ISINs and CFIs.

The number of qualified foreign securities grew 64 percent in Q2 2017 and amounted to 1,583 securities (966 securities in Q2 2016).

NSD also has got a status of pre-Local Operating Unit (pre-LOU); it signed a master agreement with the Global Legal Entity Identifier Foundation (GLEIF) and became a candidate for accreditation as a LOU. LEIs assigned bythe NSD are recognized by regulators, market participants, pre-LOUs and LOUs of other countries.

In Q2 2017, the NSD assigned 13 new LEIs. It also verified 141 LEIs; this was 10 percent more than in Q2 2016.

In Q2 2017, the NSD assigned 242 ISINs and CFIs to Russian financial instruments.

Technological services:

In Q2 2017, two new users were provided with the technological access to SWIFT services via the NSD. The Service Bureau clients' average daily traffic increased 45 percent as compared with Q2 2016 and reached 8,666 thousand messages per day.

In the reporting period, the NSD took measures focused on ensuring the compliance with the SWIFT Service Bureau certification programme(SIP v2).



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