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National settlement depositary Non-bank credit organization of NPO of JSC NSD

Company

Assets

Assets

+ National settlement depositary (NPO of JSC NSD) Non-bank credit organization
+ EBRD

Non-bank credit organization National Settlement Depositary private company (NPO of JSC NSD) is the largest settlement depositary of Russia entering into Group of MICEX, services the stock and off-exchange exchange transactions with all types of issued securities of the Russian issuers and also provides settlement banking services, including monetary payment under transactions of participants of financial market.

NSD

The head depositary providing storage of global certificates and depository accounting of 99% of releases of corporate bonds, releases of subfederal and municipal bonds. Services 100% of transactions in the market of federal loan bond and bonds of the Bank of Russia, more than 99% of the stock exchange transactions in the market of corporate and regional bonds, the majority of transactions with actions and also transactions with Mutual funds and foreign securities.

According to agreements with the Bank of Russia of NPO JSC NSD is Settlement Center of the organized market of securities (OMS), the credit institution authorized for implementation of calculations for credit and deposit transactions of the Bank of Russia.

The NPO of JSC NSD is a working interest owner of calculations of a system of bank electronic due payments of the Bank of Russia (BESP).

The NPO of JSC NSD corresponds to the rating of central depository of AA-according to the international rating agency Thomas Murray. Is the National numbering agency across Russia Substituting with the numbering agency across the CIS, performing assignment to securities of international codes of ISIN and CFI.

The NSD offers the clients full range of services, including:

  • depository services,
  • settlement and cash services,
  • registration of off-exchange transactions (repository),
  • information services,
  • services in management of providing,
  • technology services.

Statuses

The status of central depository is given to NSD by the Order of FFMS of Russia of 11/6/2012 No. 12-2761/PZ-I.

Having the status of the National numbering agency across Russia and the Substituting numbering agency across the CIS, NSD it is authorized to assign for securities international codes of ISIN, CFI, FISN and also has the status of local operational division (Local Operating Unit, LOU) allowing to assign international codes for identification of legal entity (LEI).

The Bank of Russia gave to NSD the status of the operator of a payment system with the registered name "NSD Payment System".

Activities

Basic facts and digits, 2017
Basic facts and digits, 2017
Main directions of business of NSD, 2017
Main directions of business of NSD, 2017

IT and block NSD

Main article: Information technologies in the National Settlement Depositary (NSD)

Performance Indicators

2019: The volume of securities stored in NSD - over 50 trillion rubles

The volume of securities stored in the National Settlement Depositary (NSD) exceeded 50 trillion in a ruble equivalent for the end of October, 2019. On November 6, 2019 reported about it in NSD.

Within 7 years from the moment of assignment of NSD of the status of central depository of the Russian Federation the order of FFMS of Russia of 11/6/2012 No. 12-2761/pz-i the total volume of assets stored increased from 9 to a 51-ta trillion in a ruble equivalent.

«
The boundary overcome 50 trillion demonstrates forward development of the Russian stock market and investor confidence to its infrastructure in general, and to NSD as central depository, in particular. We see growth of share value, dynamic since the beginning of year of 20%, and the market of federal loan bond, high demand of investors on eurobonds of the Ministry of Finance and on corporate bonds and eurobonds of the Russian issuers (a gain over 8%). It is pleasant to note that local market participants became more active to use the tools addressing at the Moscow Exchange and, in particular, KSU and shares of mutual funds where 2-fold growth is recorded, – Eddie Astanin, the Chairman of the board of NSD said.
»

History

2019

NSD it is selected by the partner of the Central Bank of the Russian Federation for development of SPFS

On November 18, 2019 it became known that the Central Bank of the Russian Federation selected the partner for development of the Russian analog of SWIFT. As the deputy head of department of department of national payment system Central Bank Denis Zagumennov told, the Bank of Russia made the decision to develop the transmission system of financial messages (TSFM) together with the National Settlement Depositary (NSD). Read more here.

Beginning of providing payment services of SWIFT gpi

On September 25, 2019 the National Settlement Depositary (NSD) reported that it began to provide payment services of SWIFT gpi (global payment innovation). The first transaction took place at the end of September, 2019.

According to the company, became NSD the first among TsD, to the provided clients service of gpi which allows to make cross-border payments in an expedited manner in real time and also to keep track of their statuses.

Distribution of gpi service from SWIFT became result of increase in demand for service of acceleration of the international payments. Nearly a half of the payments registered on gpi technology is enlisted within 30 minutes, many of them pass for only several seconds, and nearly 100% of payments are made within 24 hours. Besides, this service allows end customers to trace a payment status from the beginning of initiation until the end of execution. Level of transparency of payments is high: clients can obtain information on each bank participating in a payment chain and also on the charged fees.

2018: Status of authorized depositary of Belarus

The national settlement depositary announced on April 26, 2018 obtaining the status of the authorized depositary of Belarus allowing to perform functions on accounting of the rights to the government securities emitted by the Ministry of Finance on behalf of Republic of Belarus. So far clients of NSD could accept on storage and carry out calculations only with corporate bonds and actions of issuers of the republic.

"The status of NSD as authorized depositary of Belarus will allow to give additional opportunities to the Russian and foreign investors interested in performing transactions with securities of the Belarusian issuers. In addition, such cooperation answers the purpose of the Association of Central Depositories of Eurasia (ACDE) which includes our organizations and which accumulates efforts on development of post-trading infrastructures of financial markets of member countries of ADTsE — Eddie Astanin, the chairman of the board of NSD noted.

«
We hope that assignment to central depository of the Russian Federation of the status of authorized depositary will promote involvement of foreign investors on domestic market of government bonds of Republic of Belarus and will expand a range of the opportunities given to our clients — Valentina Tymoshenko, the Director of the republican unitary enterprise "Republican Central Depository of Securities" emphasized.
»

2017

  • In 2017 the volume of securities stored reached 39.4 trillion rubles, having increased by 8% in comparison with 2016 (36.4 trillion rubles). The number of issues of the foreign securities which are on service in NSD increased by 66% – from 5.1 thousand to 8.5 thousand. The total quantity of the issues of securities which are on service in NSD grew by 29% from 11.9 thousand in 2016 up to 15.4 thousand in the 2017th.
  • The volume of a remaining balance of federal loan bond on accounts of foreign nominal holders grew by 49% and was 2.2 trillion rubles.
  • The Russia's first transaction on a blockchain platform and calculations at issue of commercial bonds is performed.
  • The number of KD on the Russian securities grew by 6% and was 15,812. From them 4067 meetings of owners of securities are held using technology of electronic vote.
  • The number of KD on foreign securities grew by 84% and reached 14,650
  • The volume of calculations in NSD settlement payment system grew by 10% and was 389.8 trillion rubles
  • The price center NSD obtained accreditation of the Bank of Russia.

Disclosure of information of the 2nd level on LEI

The National Settlement Depositary (NSD) announced on September 4, 2017 the beginning of collecting and disclosure on participants of the market of the data of the 2nd level allowing to identify parent and subsidiary companies by the LEI codes (Legal Entity Identifier) and the connection established between them.

According to requirements of global fund of maintenance of the international system of identification of legal entities (Global Legal Entity Identifier Foundation, GLEIF) of NSD developed and implemented a format (Level 2) in which information on parent companies of the market participants having the LEI code is transferred to GLEIF and also it is posted in free access on the website of NSD.

Earlier, in July, 2017, NSD, following requirements of GLEIF, implemented a format of disclosure of information of the 1st level: on market participants and their LEI codes (CDF 2.1) which completely will replace further with itself(himself) the previous version of a format (CDF 1.0). Implementation of new CDF formats 2.1 and Level 2 – the next step of NSD to obtaining the status LOU accredited by GLEIF.

Process of accreditation as LOU is several consecutive stages which the NSD passes, continuing to perform functions of preliminary local operational division (pre-LOU) authorized by global committee on supervision of implementation of LEI (The Legal Entity Identifier Regulatory Oversight Committee, LEI ROC) and to assign the LEI codes.

The NSD performs the pre-LOU functions since 2013. In 8 months 2017 of NSD assigned 42 new LEI codes. It was verified 291 LEI that is 10% more, than for the same period of last year.

1996

By NSD it is founded on June 27, 1996.

Notes