The National Settlement Depository (NSD), Russia’s central securities depository (CSD) has seen a 23 percent increase in securities on deposit in its Q1 2015 results.
Securities on deposit increased by 23 percent from about RUB 22.4 trillion in Q1 2014 to RUB 27.4 trillion in Q1 2015.
The number of inventory operations dropped by 4.6 percent to 586,000, but the number of operations as a result of exchange trading remained steady, increasing by 0.2 percent to 468,300 in Q1 2015, compared to 367,400 in the same period last year.
Over-the-counter operations, however, dropped by 20 percent from 146,000 to 117,800. These included 61,500 delivery-versus-payment (DVP) transactions, a decline of 7 percent, and 56,200 free-of-payment transactions, a reduction of about 3 percent.
Despite the dip in transactions, the value of DVP payments remained fairly steady at about RUB 571.2 billion.
By the end of the quarter, 216 NSD clients were connected to the collateral management services, compared to 174 at the end of Q1 2014.
The number of transactions that used collateral management services increased by about 25 percent from 1,824 in Q1 2014 to 2,274 in 2015. The total value of these transactions decreased, however from RUB 11.1 trillion to RUB 8.4 trillion.
The total number of transactions registered with the NSD increased by more than 250 percent from 31,000 in Q1 2014 to more than 85,600 in Q1 2015. This has been attributed to market participants preparing for the introduction of mandatory reporting on all types of OTC derivatives, which will come in to effect in October.
Q1 2015 also saw the first transactions conducted within a new collateral services for repo.
There was also distinct growth in the value of registered transactions. In Q1 2015, reports on OTC transactions with derivatives amounted to RUB 93 trillion, more than double the value of Q1 2014, which amounted to RUB 43.6 trillion.
NSD market participants are now submitting voluntary reports on transactions, meaning that more than 38,000 currency forwards transactions have been registered. Participants have also submitted reports on currency and commodity options and commodity forwards, among other things.
The number of corporate actions on the CSD increased by 30 percent from 2,700 in Q1 2014 to 3,530 in the same period in 2015. Foreign securities operations also saw an increase of more than 25 percent to 443.
In February, NSD launched a new conversion payment service to unite currency sale, purchase and transfer operations. This allowed NSD to reduce instructions and payment documents submitted by clients and is expected to affect 2015 results going forward.
