NDC Reports 23.4% Increase in Turnover for 1H 2010
Russia's National Depository Center reports its operating results for 1H 2010.
- (1888PressRelease) July 16, 2010 - MOSCOW - National Depository Center (Closed Joint Stock Company) (NDC), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, reports its operating results for the first half of 2010.
NDC's securities turnover (the market value of securities transferred in inventory operations) increased by 23.4% for the first half of 2010 against the comparable period of 2009 to reach RUB32.961 trillion (RUB26.72 trillion for 1H 2009). The number of inventory operations conducted by NDC for 1H 2010 amounted to 1,322,098. This was 13.6% more than for the first six months of 2009. 80.2% of inventory operations were represented by shares (1,060,166 operations); this is 14.4% more than for 1H 2010. Value of securities on deposit with NDC as of 30 June, 2010 amounted to RUB6.736 trillion. This is 10.7% more against 31 December, 2009 (RUB6.086 trillion).
As of 30 June, 2010 the aggregate market value of Russian issuer's shares on deposit with NDC did not change in comparison with the same period of 2009. The value of Eurobonds on deposit decreased by 39.86%; and aggregate nominal value of UITs' units raised by 17.17%. The value of the Bank of Russia's bonds on deposit with NDC tripled for 1H 2010 reaching RUB963.959 million as of 30 June, 2010.
Total number of securities on deposit with NDC decreased by 14.6% (from 2.101 trillion items as of 31 December, 2009 to 1.795 trillion items as of 30 June, 2010).
Total number of securities issues served by NDC increased by 0.4% against the data as of 31 December, 2009 (2,908 issues as of 30 June, 2010). In the meantime the number of issuers served by NDC 0.5% grew for 1H 2010 amounting to 1,433 companies. The number of depository accounts including non-residents' accounts increased by 1.4% for the first six month of 2010 and reached 1,932.
NDC retains its leading position as a paying agent on corporate and regional bonds. In as of 1 July, 2010 NDC's share in paying agent services market reached 36.5% on basis of nominal value of the corporate and regional bond issues and 37.9% on basis of the number of corporate and regional bonds' issuers. For the first six months of 2010 NDC as a paying agent took 58 bond issues by 38 issuers for servicing. As of 30 June, 2010 the number of bond issues serviced by NDC as a paying agent reached 269 issues by 161 issuers.
For the first half of 2010 NDC made 323 corporate, regional and the Bank of Russia's bond issues' payments for RUB608.197 (317 payments for RUB58.652 billion for the same period of 2009) and also paid RUB1.85 billion as income on registered securities (dividends, UITs income, revenues from repurchase of shares). This is 73.6% more than for 1H 2009 (RUB1.066 billion). The sum of Eurobonds' coupon and maturity payments for the first six months of 2010 amounted to RUB17.997 billion.
In its role as Russia's national numbering agency, NDC assigned international ISIN and CFI codes to 251 Russian securities in 1H 2010. NDC withdrew ISIN codes from 159 Russian securities. Since October 2009 the company assigns ISIN codes to additional share issues; for 1H 2010 NDC assigned the codes to 43 additional share issues and withdrew the codes from 28 additional share issues (in the course of cancellation of these share issues' individual codes when the additional share issues receive the same ISIN assigned to its primary share issues).
In 2008 the Federal Financial Markets Service's Provision for Foreign Financial Instruments as Securities approved by FFMS Order #07-105/pz-n of Oct. 23, 2007, came into effect. According to this document NDC, acting as a member of Association of National Numbering Agencies (ANNA), provides services related to qualification of foreign financial instruments as securities to stock market participants.
For 1H 2010 NDC received and processed 6,710 requests on financial instruments (including requests on the same instrument sent by different clients). In the course of processing, the company determined that there were requests for information on 934 new instruments.
As of 30 June, 2010 (including data for the previous years), NDC received and processed 39,925 requests on financial instruments (including requests on the same instrument sent by different clients). In the course of processing, the company determined that there were requests for information on 11,701 instruments. It was determined that 777 instruments did not have CFI codes including 220 instruments which also did not have ISIN codes. 294 instruments had CFI codes which did not conform to ISO 10962 and the Federal Financial Markets Service's qualification requirements. Another 10,630 instruments had CFI codes which conform to the FFMS qualification requirements for foreign financial instruments including 17 CFI codes assigned with NDC's assistance.
Value of securities held in NDC accounts is an operational indicator which does not include the market value of other assets held in issuers' accounts. The value of shares and units of Unit Investment Trusts is based on market value, and the value of bonds is based on nominal value.
National Depository Center (Closed Joint Stock Company) is the largest settlement depository in Russia, servicing on-exchange and OTC transactions with all types of debt and equity securities of Russian issuers. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, sub-federal and municipal bond issues. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, more than 99% of transactions conducted in the corporate and regional bond markets, the majority of transactions with equities and also services UIT units and Eurobonds. The international rating agency Thomas Murray has assigned NDC an АА- rating as a central depository. NDC is Russia's national numbering agency, and the substitute numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.