The Valuation Center of Russia’s National Securities Market Association (NSMA) has made its fair value data available to a circle of distributers who will allow access to a network of users.
Information will come from Moscow Exchange, the National Settlement Depository – Russia’s central securities depository – and news agencies Interfax, Thomson Reuters and Cbonds. It will include the fair values of more than 1,400 financial instruments, which are calculated daily at the Valuation Center.
Designed for holders of illiquid instruments, the service intends to ease the burden on back-office, accounting, reporting and risk management departments.
The Valuation Center will calculate fair values on the basis of the NSMA Methods, which were developed with the support of the Bank of Russia and correspond to the IFRS requirements and regulatory acts issued by Russia’s Ministry of Finance.
The method includes the calculation of price parameters on the basis of four indicators – market prices, NSMA fixing process, zero coupon yield curve, and data on issuers’ credit quality. These were certified by Russia’s Guild of Investment and Financial Analysts last year, and have been through an appraisal process with the European Bond Commission.
Information is accessible to the clients of the new agencies on a trial basis, and is expected to be available through a paid subscription from November.
