NSD releases Q2 results
28 August 2018 Moscow
Image: Shutterstock
Russia’s National Securities Depository (NSD)’s value of securities under custody reached RUB 42.4 trillion, a 20 percent increase on the same period in 2017 (RUB 35.5 trillion).
The Q2 results also showed the number of foreign securities issues (ISIN) the depository serviced increased by 63 percent, while the broader total number of securities issues serviced increased 34 percent.
The total number of companies that joined its centralised platform for record-keeping and distributing unit investment trust (UIT) units reached 16, being nine brokerage companies/nominees and seven asset management companies.
The number of inventory operations in the CSD increased 17 percent year-on-year (YoY) and reached 829,000 operations in Q2 2018 (compared with 708,000 in Q2 2017).
This includes 640,000 exchange-traded operations and 190,000 over-the-counter (OTC) trades.
In Q2 2018, the value of delivery-versus-payment (DVP) transactions grew to RUB 2.4 trillion, 36 percent more than in Q2 last year. (RUB 1.7 trillion).
The NSD said client interest in using the new services (linked transactions and instruction prioritisation) remained stable. In Q2 2018, the total number of operations involving these services amounted to 1,413.
In Q2 2018, two commercial bond programmes worth a total maximum amount of RUB 30.5 billion and eight commercial bond issues worth a total amount of RUB 1.73 billion were registered. Ten commercial bond issues worth RUB 1.94 billion were completed.
The results come as the NSD and ARQA Technologies completed testing of the integrated solution of the UIT platform with QUIK software. According to NSD, this move will enable investors to conduct UIT unit transactions on the primary market via QUIK terminals.
In Q2, the NSD was also named the authorised depository Belarus; this allows o to record the rights to government securities issued by the Ministry of Finance (on behalf of the Republic of Belarus) and to expand the range of NSD services provided to clients in Commonwealth of Independent States (CIS) markets.
In Q2 2018, the NSD together with MTS, Russia’s leading telecommunications operator, and Sberbank CIB, Sberbank’s corporate investment business, placed commercial bonds denominated in rubles and based on blockchain with cash settlement for the first time in Russia.
The NSD and Sberbank CIB also announced their intention to test an initial coin offering (ICO) technology on the Bank of Russia’s regulatory platform.
In Q2 2018, 2,039 meetings of security holders were held using e-voting technology; 87 repurchases of shares and 12 corporate actions to exercise the pre-emptive right to purchase shares were also initiated. The total value of repurchased shares reached RUB 8.3 billion in the second quarter.
Totally, 4,981 corporate actions involving Russian securities were conducted in Q2 (down from 5,117 actions in the same period of the previous year). The number of corporate actions involving foreign securities grew 61 percent due to the increase in the number of securities issues serviced by the NSD (up from 4,102 issues in Q2 2017 to 6,592 ones in Q2 2018).
In Q2 2018, against the background of an increasing liquidity surplus, the value of repo transactions, which the Federal Treasury performed using the NSD’s collateral management system (CMS), reached RUB 4.4 trillion; the value of repo transactions with the Bank of Russia performed using the CMS was RUB 138.8 billion.
The number of OTC repo market participants who signed up for the CMS service grew to 169.
In the reporting period in question, Bank of Russia’s coupon bonds was added to the unified collateral basket for repos with the Bank of Russia.
In Q2 2018, the Federal Treasury successfully carried out the first repo auction with the floating rate based on ruble overnight index average (RUONIA) using NSD’s collateral management system. The value of repo transactions which the Federal Treasury performed—using the NSD’s CMS with a floating rate and the fixed discounted long-term rate—was RUB 125.8 billion.
The Q2 results also showed the number of foreign securities issues (ISIN) the depository serviced increased by 63 percent, while the broader total number of securities issues serviced increased 34 percent.
The total number of companies that joined its centralised platform for record-keeping and distributing unit investment trust (UIT) units reached 16, being nine brokerage companies/nominees and seven asset management companies.
The number of inventory operations in the CSD increased 17 percent year-on-year (YoY) and reached 829,000 operations in Q2 2018 (compared with 708,000 in Q2 2017).
This includes 640,000 exchange-traded operations and 190,000 over-the-counter (OTC) trades.
In Q2 2018, the value of delivery-versus-payment (DVP) transactions grew to RUB 2.4 trillion, 36 percent more than in Q2 last year. (RUB 1.7 trillion).
The NSD said client interest in using the new services (linked transactions and instruction prioritisation) remained stable. In Q2 2018, the total number of operations involving these services amounted to 1,413.
In Q2 2018, two commercial bond programmes worth a total maximum amount of RUB 30.5 billion and eight commercial bond issues worth a total amount of RUB 1.73 billion were registered. Ten commercial bond issues worth RUB 1.94 billion were completed.
The results come as the NSD and ARQA Technologies completed testing of the integrated solution of the UIT platform with QUIK software. According to NSD, this move will enable investors to conduct UIT unit transactions on the primary market via QUIK terminals.
In Q2, the NSD was also named the authorised depository Belarus; this allows o to record the rights to government securities issued by the Ministry of Finance (on behalf of the Republic of Belarus) and to expand the range of NSD services provided to clients in Commonwealth of Independent States (CIS) markets.
In Q2 2018, the NSD together with MTS, Russia’s leading telecommunications operator, and Sberbank CIB, Sberbank’s corporate investment business, placed commercial bonds denominated in rubles and based on blockchain with cash settlement for the first time in Russia.
The NSD and Sberbank CIB also announced their intention to test an initial coin offering (ICO) technology on the Bank of Russia’s regulatory platform.
In Q2 2018, 2,039 meetings of security holders were held using e-voting technology; 87 repurchases of shares and 12 corporate actions to exercise the pre-emptive right to purchase shares were also initiated. The total value of repurchased shares reached RUB 8.3 billion in the second quarter.
Totally, 4,981 corporate actions involving Russian securities were conducted in Q2 (down from 5,117 actions in the same period of the previous year). The number of corporate actions involving foreign securities grew 61 percent due to the increase in the number of securities issues serviced by the NSD (up from 4,102 issues in Q2 2017 to 6,592 ones in Q2 2018).
In Q2 2018, against the background of an increasing liquidity surplus, the value of repo transactions, which the Federal Treasury performed using the NSD’s collateral management system (CMS), reached RUB 4.4 trillion; the value of repo transactions with the Bank of Russia performed using the CMS was RUB 138.8 billion.
The number of OTC repo market participants who signed up for the CMS service grew to 169.
In the reporting period in question, Bank of Russia’s coupon bonds was added to the unified collateral basket for repos with the Bank of Russia.
In Q2 2018, the Federal Treasury successfully carried out the first repo auction with the floating rate based on ruble overnight index average (RUONIA) using NSD’s collateral management system. The value of repo transactions which the Federal Treasury performed—using the NSD’s CMS with a floating rate and the fixed discounted long-term rate—was RUB 125.8 billion.
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