National Settlement Depository Non-bank Credit Organization NPO JSC NSD
Since 1996
Russia
Central Federal District of the Russian Federation
Moscow
105066, st. Spartakovskaya, d. 12
Top managers:
Oleg Vitalievich Kuserov
Content |
Non-bank credit institution closed joint stock company "National Settlement Depository" (NPO JSC NSD) - the largest settlement depository of Russia, part of the MICEX Group, serves exchange and over-the-counter transactions with all types of issue securities of Russian issuers, and also provides settlement banking services, including cash settlements on transactions of financial market participants.
Head depository, which ensures the storage of global certificates and depositary accounting for 99% of corporate bond issues, subfederal and municipal bond issues. It serves 100% of transactions in the OFZ and Bank of Russia bonds market, more than 99% of exchange transactions in the corporate and regional bond market, most transactions with shares, as well as transactions with mutual funds and foreign securities.
In accordance with the agreements with the Bank of Russia, NPO NSD JSC is the Settlement Center for the Organized Securities Market (ORCB), a credit institution authorized to make settlements on credit and deposit operations of the Bank of Russia.
NPO NSD JSC is a direct participant in the settlements of the Bank of Russia electronic bank payments system (BESP).
NPO NSD JSC corresponds to the rating of the central depository AA- according to the assessment of the international rating agency Thomas Murray. It is the National Numbering Agency for Russia, the Replacement Numbering Agency for the CIS, assigning international ISIN and CFI codes to securities.
NSD offers its customers a wide range of services, including:
- depository services,
- settlement and cash service,
- registration of OTC transactions (repository),
- information services,
- collateral management services,
- technology services.
Statuses
The status of the central depository was assigned to NSD by Order of the Federal Financial Service of Russia dated 06.11.2012 No. 12-2761/PZ-I.
Having the status of the National Numbering Agency for Russia and the Replacement Numbering Agency for the CIS, NSD is authorized to assign international codes ISIN, CFI, FISN to securities, and also has the status of a Local Operating Unit (LOU), which allows you to assign international codes of identification of a legal entity (LEI).
The Bank of Russia has granted NSD the status of a payment system operator with the registered name "NSD Payment System."
Areas of activity
NSD IT Unit
Main article: Information technology at the National Settlement Depository (NSD)
Performance indicators
2019
The volume of securities held in NSD reached 52.67 trillion rubles
On March 16, 2020, NSD announced the results of 2019. In 2019, the volume of securities in storage reached 52.67 trillion rubles, an increase of 17% compared to 2018 (44.97 trillion rubles). The total number of securities issues serviced by NSD increased by 17% from 20.1 thousand in 2018 to 23.4 thousand in 2019. The number of issues of foreign securities serviced by NSD increased by 23% - from 12.6 thousand to 15.5 thousand.
According to the company, in 2019 NSD continued the development of the CSU Platform of IP UIF ("UIF Platform"), aimed at unifying the interaction of brokers, management companies, specialized depositories/registrars in the collective investment market.
The UIF platform is integrated with the QUIK software complex, which gives clients of brokers (nominal holders) access to the collective investment market. The product is interesting for brokers, management companies and investors in order to conduct operations with investment units of mutual funds in the primary market. In 2019, 8 customers joined the UIF Platform, including 3 management companies. The participants of the platform were VTB Capital Investment Management, Management Company JSC SOLID Management and Management Company URALSIB.
The number of inventory transactions in the central depository increased over the year by 22% to 4.1 million in 2019 against 3.4 million in 2018, of which, according to the results of exchange trading, 3.2 million in 2019 (+ 22%) against 2.6 million operations in 2018, over-the-counter operations - 925 thousand operations (+ 20%) against 769 thousand in 2018.
In 2019, there was an increase in the volume of OTC transactions calculated on the terms of "delivery against payment" (DVP), reaching 9.4 trillion rubles, which is 17% higher than in 2018 (8.0 trillion rubles).
There was a positive trend in the growth of the number of customer transactions using updated settlement services such as linked transactions and "Prioritization of instructions," which reached 27.7 thousand operations by the end of 2019. This figure is more than 5 times the figure of the previous year (5.1 operations in 2018).
The volume of balances of federal loan bonds (OFZs) in the accounts of foreign nominal holders amounted to 2.8 trillion rubles, an increase of 62% (1.7 trillion rubles) compared to 2018.
In 2019, 10 commercial bond programs were registered with a total maximum issue volume of RUB 560 billion and 43 commercial bond issues totaling RUB 14.5 billion.
In 2019 E-voting , 19 meetings of shareholders were held using the service, including at several meetings the simultaneous use of E-voting systems (NSD) and the registrar system was ensured, thereby providing investors and issuers with the widest possible opportunities to use the E-voting service. E-voting services were used by: PJSC, Novolipetsk Metallurgical Plant AK ALROSA(PJSC), PJSC, Rostelecom PJSC, IC RUSS-INVEST PJSC, Sberbank PJSC, RusHydro PJSC, PJSC Gazprom neft. Since Moscow Exchange 2019 information , NSD has become available on electronic voting at shareholder meetings using the E-voting service through the news agency. Cbonds
As part of the modernization of EDM channels and the transition to WEB technologies, from September 30, 2019, the WEB-office of depository and clearing services (DKU WEB-office) becomes the main software provided by NSD to organize the interaction of the client with NSD when receiving depository and clearing services.
In 2019, NSD announced its readiness to accept and take into account structural bonds the Russian issuers, as well as serve customers in terms of supporting the issue and conducting corporate actions with them.
NSD continuously develops services focused on working with foreign assets and in international markets. In 2019, 9 customers were users of the Individual Accounts in ICSD service, and the total number of segregated accounts with Euroclear Bank in the name of NSD providing separate accounting of the depositor's securities was 11. The main advantage is the ability to make settlements in the so-called "back-to-back" mode, when funding for a transaction is carried out on the difference between the receipt and delivery of securities. Additional advantages are the availability of additional services for use when working in ICSD (technical netting, linked transactions, "Prioritization of instructions"), which increases liquidity and allows you to fund the transaction right before settlement, and not in advance.
As part of the active development of services integrated with the global financial system. Raiffeisen Bank International (Vienna) became the first foreign custodian bank to establish direct access to the Russian securities market by opening a foreign nominee account directly with the Russian central depository. This enabled the Bank to provide its clients with access to a wide range of NSD's Russian financial instruments and services.
In 2019, NSD continued to actively develop its expertise regarding digital technology and the use of blockchain in post-trading services. In the interests of developing the national infrastructure of the commodity market, NSD, together with Rosselkhozbank, began piloting a project to digitalize (tokenize) grain accounting and conduct transactions with this product using blockchain technology.
The volume of funds placed in the flagship product of NSD's tripartite services - repo of the Federal Treasury - in 2019 amounted to RUB 19.9 trillion. compared to RUB 17.3 trillion. in 2018. The past year was characterized by a slight decrease in the structural liquidity surplus of the banking sector compared to 2018. (the average of RUB 3,026 trillion compared to RUB 3.332 trillion in 2018) and a gradual decrease in interest rates. The Federal Treasury responded flexibly to market conditions and placed more than a third of all cash in repurchases at floating rates. Transactions for long periods (over 30 days) amounted to 75% (118.6 trillion rubles. Out of 148.5 trillion rubles. Total turnover). The average term for Federal Treasury transactions was 7.41 days, up from 6.17 days in 2018.
During 2019, there was an increase in the activity of the Repository's clients: the number of transactions registered in the NSD Repository amounted to about 15.2 million, which is 21% higher than the result of 2018 (12.5 million). The volume of registered transactions showed an increase of 28%, reaching 558.5 trillion. rubles (a year earlier - 434.8 trillion rubles).
The number of NSD information services user contracts in 2019 increased by 13%, reaching 606. The number of users showed the Price Center was 180 against 182 in 2018.
The volume of money transfers in Russian rubles decreased by 8% and amounted to 265.4 trillion rubles. in 2019 against 288.8 trillion rubles, in 2018. The volume of money transfers in foreign currency amounted to 38.3 trillion rubles in 2019 against 46.9 trillion rubles in 2018 (-18%). The total volume of transactions in 2019 on bank accounts of customers in Russian rubles and foreign currency amounted to 303.6 trillion rubles.
The volume of securities stored in NSD at the end of October - over 50 trillion rubles
The volume of securities held in the National Settlement Depository (NSD) exceeded 50 trillion in ruble equivalent at the end of October 2019. This was reported on November 6, 2019 in NSD.
Within 7 years of NSD's designation as the central depository of the Russian Federation by Order of the Federal Financial Service of Russia dated 06.11.2012 No. 12-2761/pz-i the total volume of assets in storage increased from 9 to 51 trillion in ruble equivalent.
 | The 50 trillion milestone overcome indicates the progressive development of the Russian stock market and the confidence of investors in its infrastructure as a whole, and in NSD as a central depository, in particular. Since the beginning of the year, we see a dynamic 20% increase in the value of shares and the OFZ market, high investor demand for Eurobonds of the Ministry of Finance and for corporate bonds and Eurobonds of Russian issuers (an increase of over 8%). It is gratifying to note that local market participants began to actively use instruments circulating on the Moscow Exchange and, in particular, KSU and mutual fund units, where 2-fold growth was recorded, - said Eddie Astanin, Chairman of the Management Board of NSD. |  |
History
2022
Appeal to the Council of Europe to appeal against EU sanctions
On November 2, 2022, the National Settlement Depository (NSD, part of the Moscow Exchange Group) filed an appeal with the Council of Europe as part of the administrative procedure for appealing the decision to include NSD in the EU sanctions lists on June 3, 2022.
Work on applying to the Council of Europe is being carried out in parallel with appealing against EU sanctions in the court of general jurisdiction of the EU. NSD takes all necessary actions to protect its rights, as well as to release the blocked unauthorized assets of the affected financial market participants.
Thus, NSD introduced a marketing period for a large range of operations in order to ensure the possibility of unlocking the assets of financial market participants.
On September 30, 2022, NSD submitted requests to the authorized financial authorities of Belgium and Luxembourg for licenses. They are under consideration, no answers have yet been received.
Requests for licenses submitted by NSD do not impede the ability and right of financial market participants to make similar requests on an individual basis, according to the requirements of EU law.
Thus, as of November 2022, NSD took all the actions dependent on it to create conditions for the release of assets of affected financial market participants announced as part of the eighth package of European sanctions, as well as taking into account the explanations of the European Commission.
The European Commission allowed settlements with NSD after obtaining a license
In August 2022, the European Commission allowed settlements with the sanctioned National Settlement Depository (NSD), where securities of Russian investors hung, but subject to two conditions. First, NSD should not benefit economically from such transactions; secondly, transactions must be agreed upon by regulators of countries in which NSD's foreign counterparties are registered.
Brokers, management companies and other financial market participants will need to disclose the addressees of payments in order to exclude transfers to sanctioned persons.
Defrosting requires a separate license from European regulators, which may take considerable time to obtain.
Challenging EU sanctions in court
On August 12, 2022, the Moscow Exchange announced that the National Settlement Depository (NSD) had filed a lawsuit with the Court of Justice of the European Union (EU) in Luxembourg to lift the restrictions imposed.
The purpose of the claim is to prove the illegality and unreasonableness of NSD's inclusion in the EU sanctions lists, as a result of which Russian and foreign investors suffered.
The EU imposed blocking sanctions on NSD on June 3, 2022.
Falling under EU sanctions against the background of Russia's special operation in Ukraine
On June 3, 2022, the National Settlement Depository from the Mosbirzhi Group was included in the sanctions list. European Union The European Union closed bond coupons and various securities bridges. The sanctions mean that hopes for a bridge with Euroclear are buried, settlements in euros through NSD correspondent accounts will be impossible.
2021: Viktor Zhidkov - New Chairman of the Board of the National Settlement Depository
At the end of April 2021, it became known about the appointment of Viktor Zhidkov to the post of chairman of the board of the National Settlement Depository (NSD, part of the Moscow Exchange group ). The corresponding decision was made by the supervisory board following the meeting. Read more here.
2020
Confirm Local Operations Unit (LOU) status
In May 2020, the National Settlement Depository (NSD) passed the annual re-accreditation of the Global identifications Legal Entity Identifier Foundation (GLEIF), confirming its status as a Local Operating Unit (LOU). According to representatives of the organization, as of May 27, 2020, NSD is the only company Russia in both countries CIS that has such a status.
The LOU status authorizes the organization to assign and verify market participant LEIs annually. Among its other duties are to accept LEI codes for service, translated by market participants from other LOUs, and transfer data by codes to the international LEI code database supported by the global GLEIF operator.
As a LOU, NSD serves 30 jurisdictions, among which, in addition to the Russian Federation, the CIS countries, Western and Eastern Europe and other countries of the world, market participants of which can contact NSD for the assignment and maintenance of LEI codes. At the request of customers, NSD is expanding the list of served jurisdictions.
NSD's activities as a LOU ensure the implementation of international codification standards in the Russian and CIS markets, which increases their transparency, integration into the infrastructure of the international market, and also optimizes operations in the financial market, the company noted.
Obtaining the status of the service bureau of the Bank of Russia SPFS
On May 19, 2020, the National Settlement Depository (NSD) received the status of the Service Bureau of the Financial Messaging System (SPFS) of the Bank of Russia.
The service bureau service will be of interest to small and medium-sized banks of the Russian Federation, banks of the EAEU and Russian corporations. The key advantage of the service is to reduce customer spending on building and maintaining infrastructure.
NSD offers interaction with SPFS user organizations through an independent technology platform that ensures fast and safe interaction of participants. The minimum functionality of the SPFS service bureau will include automatic format conversion and transmission of financial messages. The tariff for the services of the service bureau will depend on traffic and consist of a one-time connection fee and a monthly use fee.
{{quote 'author = said Alexander Nam, Managing Director for Technological Services at NSD'For NSD, SPFS is the next channel of interaction. First of all, we will offer the service to our current customers of the SWIFT service bureau, which is about 70 organizations in the Russian Federation and the CIS. Participants themselves will choose the most appropriate method depending on the counterparty, cost and type of transaction. The development of the channel is within the framework of our strategy to create a single "infrastructure Internet." Our task is to make one convenient and secure application (messaging hub) that will support different remote channels (SPFS, SWIFT and Transit), }}
2019
83 LEI codes assigned, 530 LEI codes verified
In 2019, NSD assigned 83 LEI codes, verified 530 LEI codes.
In 2019, NSD, in response to the needs of clients from countries, CIS introduced a scheme of interaction for assigning and further servicing LEI codes identifications through a Registered Agent operating in the country of the client, licensed by the Global Legal Entity Identifier Foundation (GLEIF). This step simplifies access to NSD's services for assigning and maintaining LEIs for foreign market participants.
The MNR it is chosen as 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 chose a partner for the development of the Russian analogue SWIFT. According to Denis Zagumennov, Deputy Head of the Department of the National Payment System of the Central Bank, the Bank of Russia decided to develop a financial messaging system (SPFS) together with the National Settlement Depository (NSD). Read more here.
Approval of the development strategy until 2024
On October 24, 2019, the National Settlement Depository informed TAdviser that it had approved a development strategy through 2024. The approved strategy is approved by NSD's Supervisory Board and reflects changes and challenges occurring in the financial sector, in the external and internal environment.
An important characteristic of the strategy is that it is organically integrated into the development strategy of the Moscow Exchange Group for 2019-2024, which implies synchronization and synergy of the development of the Group's companies.
The strategy highlights three key areas of NSD's development:
- settlement and depository infrastructure (key business)
- services and client segments
- information assets
As part of the development of the settlement and depository infrastructure, strategic priorities are to ensure high reliability, financial stability and dynamic development of NSD as a central depository, a regional leader in the post-trading services market, integrated into the global financial market.
Services and client segments are associated with the expansion of NSD products and services in the traditional B2B segment. The strategic project in this area is the Transit 2.0 project, which is focused on the development of NSD's technological and settlement services in the interests of the approved category of clients - corporations. In addition, NSD plans to enter the B2B2C segment (business-to-business-to-customers). In particular, in the role of the Registrar of Financial Transactions (RFT) in the Marketplace project.
The development of information assets involves the creation of products and services for customers based on data (data lake) accumulated in the company, the further development of the Price Center, as well as technologies in the field of RegTech (English Regulatory Technology - Regulatory Technologies, or regtech).
The strategy focuses on improving the risk management system. Key elements of the strategy are also ensuring the required business continuity and information security standards.
NSD continues its progressive development as a technology player, an international participant in the global post-trading infrastructure. Over the past 7 years, that the organization operates in the status of a central depository, the amount of assets that NSD serves has increased 4 times - from 12 trillion rubles to 49.2 trillion rubles. These are not only securities of Russian issuers, but also foreign securities that belong to NSD clients.
| | NSD should become the infrastructure foundation of the ecosystem of the financial market of the Russian Federation, a regional leader providing service to various types of assets (securities, money, goods, digital assets) and the provision of complementary services (settlement of transactions, collateral management, calculation of fair prices, provision of high-tech platform solutions for marketplaces, for pension and insurance industries, etc.), creating additional value for market participants, noted Eddie Astanin, Chairman of NSD Management Board
| |
Start of SWIFT gpi payment services
On September 25, 2019, the National Settlement Depository (NSD) announced that it had begun providing SWIFT gpi (global payment innovation) payment services. The first transaction took place in late September 2019.
According to the company, NSD was the first among the data centers to provide its customers with the gpi service, which allows them to quickly make cross-border payments in real time, as well as track their statuses.
The distribution of the gpi service from SWIFT was the result of growing demand for the service of accelerating international payments. Almost half of payments made using gpi technology are credited within 30 minutes, many of them take place in just a few seconds, and almost 100% payments are made within 24 hours. In addition, this service allows end customers to track the status of the payment from initiation to the end of execution. The level of transparency of payments is high: customers can get information about each bank participating in the payment chain, as well as about the fees charged.
2018: Status of the authorized depository of Belarus
On April 26, 2018, the National Settlement Depository announced that it had received the status of an authorized depository of Belarus, which allows it to carry out functions for recording rights to state securities issued by the Ministry of Finance on behalf of the Republic of Belarus. Until now, NSD's clients could accept for storage and make settlements only with corporate bonds and shares of issuers of the republic.
"The status of NSD as an authorized depository of Belarus will provide additional opportunities for Russian and foreign investors interested in conducting operations with securities of Belarusian issuers. In addition, such cooperation corresponds to the goals of the Association of Central Depositories of Eurasia (ADCE), which includes our organizations, and which accumulates efforts to develop post-trading infrastructures of the financial markets of the ADCE member countries, "said Eddie Astanin, Chairman of the NSD Board.
| | We hope that the assignment of the status of an authorized depository to the central depository of the Russian Federation will help attract foreign investors to the domestic market of state bonds of the Republic of Belarus and expand the range of opportunities provided to our clients, "said Valentina Tymoshenko, Director of the Republican Unitary Enterprise" Republican Central Securities Depository. " | |
2017
- In 2017, the volume of securities in storage reached 39.4 trillion rubles, an increase of 8% compared to 2016 (36.4 trillion rubles). The number of issues of foreign securities serviced by NSD increased by 66% from 5.1 thousand to 8.5 thousand. The total number of securities being serviced by NSD increased by 29% from 11.9 thousand in 2016 to 15.4 thousand in 2017.
- The volume of OFZ balances in the accounts of foreign nominal holders increased by 49% and amounted to 2.2 trillion rubles.
- The first transaction on the blockchain platform and settlements in the issue of commercial bonds was carried out in Russia.
- The number of CDs for Russian securities increased by 6% and amounted to 15,812. Of these, 4067 meetings of securities owners were held using electronic voting technology.
- The number of CDs on foreign securities increased by 84% to reach 14,650
- The volume of settlements in the NSD settlement and payment system increased by 10% and amounted to 389.8 trillion rubles
- The NSD Price Center was accredited by the Bank of Russia.
LEI Level 2 Disclosure
On September 4, 2017, the National Settlement Depository (NSD) announced the start of collecting and disclosing level 2 information on market participants that allows identifying parent and subsidiary companies by LEI (Legal Entity Identifier) codes and the connections established between them.
In accordance with the requirements of the Global Legal Entity Identifier Foundation (GLEIF), NSD has developed and implemented a format (Level 2) in which information about the parent companies of market participants with the LEI code is transmitted to GLEIF, and is also freely available on the NSD website.
Earlier, in July 2017, NSD, following the requirements of GLEIF, introduced a level 1 disclosure format: according to the market participants themselves and their LEI codes (CDF 2.1), which will later completely replace the previous version of the format (CDF 1.0). The introduction of new CDF 2.1 and Level 2 formats is NSD's next step towards obtaining GLEIF-accredited LOU status.
The accreditation process as a LOU is a series of sequential steps that NSD goes through while continuing to serve as a pre-local operating unit (pre-LOU) mandated by The Legal Entity Identifier Regulatory Oversight Committee (LEI ROC) and assign LEI codes.
NSD has been performing its pre-LOU functions since 2013. For 8 months of 2017, NSD assigned 42 new LEI codes. 291 LEIs were verified, which is 10% more than in the same period last year.
1996
NSD was established on June 27, 1996.
Notes
| The site content is translated by machine translation software powered by PROMT. The machine-translated articles are not always perfect and may contain errors in vocabulary, syntax or grammar. Read original article If you find inaccuracies or errors in the results of machine translation, please write to editor@tadviser.ru. We will make every effort to correct them as soon as possible. |