MICEX SH & NDC – on the way to merge By: Sergey A. Sukhinin Chairman of the Board Executive, CEO...
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Transcript of MICEX SH & NDC – on the way to merge By: Sergey A. Sukhinin Chairman of the Board Executive, CEO...
MICEX SH & NDC – on the way to mergeMICEX SH & NDC – on the way to mergeBy: Sergey A. SukhininChairman of the Board Executive, CEOMICEX Settlement House
MICEX Settlement House is
• The biggest Russian non-banking credit institution• Effecting settlements in all MICEX markets: for
government and corporate securities, foreign exchange, derivatives and commodities
• Effecting settlements in OTC markets: DVP transactions of NDC participants, REPO deals with the Bank of Russia, deposit and loan transactions of the Bank of Russia
• Providing full range of settlement services to more than 880 financial institutions all over Russia including the biggest ones
• Authorized Settlement Center in Organized Securities Market nominated by the Bank of Russia
• Ranking among 30 biggest Russian credit institutions
“The National Depository Center” (Closed Joint Stock Company) is
• The leader of the Russian securities settlement infrastructure with a public CSD Rating of AA– issued by Thomas Murray (Stable outlook)
• The settlement depository of the MICEX Group• The Russia`s sole settlement depository servicing
all types of securities and ensuring settlements of 100% of trades on the government bond market, more than 99% of trades on the corporate bond and municipal bond markets, majority of transactions with equities traded on the stock market, as well as transactions with UIT units and Eurobonds
• The National Numbering Agency for Russia, responsible for assignment of ISINs and CFI codes to Russian financial instruments and the Substitute Numbering Agency for CIS countries
Rostovskiy Branch (Rostov-on-Don)
MICEX SH Head office (Moscow )
Samarskiy Branch (Samara)Uralskiy
Branch (Ekaterinburg)
Sibirskiy Branch (Novosibirsk) Primorskiy
Branch (Vladivostok)
NizhegorodskyBranch (Nizhniy Novgorod)
MICEX SH & NDC regional network
MICEX SH’s basic financials as of 01 January, 2010 (in millions)
• Average assets – RUB 160 000 (USD 5 300)• Average Equity – RUB 3 700 (USD 123)• Average Funds with the Bank of Russia and in
correspondent accounts with prime foreign banks –
RUB 1 002 000 (USD 33 195) • Daily average turnover through customers’
accounts – RUB 1 206 000 (USD 39 953)• Daily average turnover through correspondent
account with the Bank of Russia – RUB 878 700 (USD 29 110)
• Net profit for the year – RUB 1 791 (USD 59)
NDC’s basic financials as of 01 January, 2010(in millions)
• Equity – RUB 2 174 (USD 72)• Net profit for 2009* – RUB 481 (USD 16)• Revenue for 2009*: – RUB 1 275 (USD 42)• Total value of securities held - RUB 6 270 000 (USD 207
718)
* - In connection with the reorganization of NDC from Not-for-Profit Partnership into Closed Joint Stock Company in 2009 and for purposes of comparability with the data for the same period of the previous year, for 2009 the cumulative results of operations were presented according to financial statements for the relevant periods.
MICEX Settlement House`s & NDC’s customer base as of 01 January 2010
Total 885 customers of MICEX SH
Total 892 NDC
participants
8
Functional organization of settlements within MICEX Group
8
NDCNDCMICEXMICEX
RussianClients
Client-Bank remote access facilities
S.W.I.F.T.
Intranet
Telex
Internet
Moscow region electronic settlement system
Interregional electronic settlement system
RTGS system (“BESP”)
MICEX communication system
Data exchange with MICEX depository-trading system
NCCNCC
MICEX SH
MICEX SH S.W.I.F.T.
S.W.I.F.T. Foreign bank
Foreign bank
Foreign bank
Foreign bank
Bank of RussiaBank of Russia
Basic features of settlements
• Securities are held with and settled through the NDC• Cash is deposited with and settled through the MICEX SH• DVP settlement using accounts with NDC and MICEX SH for
almost 100% of on-exchange trades• No credit risks on NDC and MICEX SH• Need to fulfill certain legal requirements on currency regulation• On-exchange trades
• 100% pre-depositing of cash and securities assets - T+0 (same day) exchange trade settlements
• Partial pre-depositing of cash and securities assets - T+n exchange trade settlements
• Settlement currency is Russian ruble for most of trades• Own funds have to be transferring from current accounts to
trading accounts on daily basis - if they are not allocated yet• For OTC trades FOP settlement in ruble and foreign currency and
DVP OTC REPOs collaterized by corporate Eurobonds.
Safety and reliability of settlements
• MICEX SH maintains minimum obligatory liquidity ratio at 100%, does not effect any investment activity thus does not carry any credit risks
• Back-up procedures are in place for all data• E-documents exchange is protected by certified encryption
mechanism• Alternative communications channels are provided• Settlement procedures are fully automated
• Real time book transfer of funds settled between MICEX SH’s customers
• Real time settlements through the Bank of Russia’s BESP system – MICEX SH is a direct participant of BESP
• Extended operational deadlines for payments in Russian ruble and foreign currencies:• RUB – 20:30• USD – 20:30• EUR – 16:00• CHF – 14:00
• Upcoming implementation of new RUB payment documents formats by the Bank of Russia will simplify input of payment instructions in RUB, in particular for non-Russian customers, and allow STP for such payments
Operational efficiency & beneficial conditions of settlement services
* For non-resident customers the deadlines are shifted back for 30 min, required for currency control purposes
MICEX SH & NDC merging: benefits
• Creation of full-fledged Russian CSD providing full range of settlement services
• Improvement of existing services – simplification of DVP models
• Introduction of new services like securities lending & borrowing and settlements with participation of CCP
• Raising capitalization of NDC• Improving perception of the Russian financial
infrastructure globally
Contacts
MICEX SH
1/13, stroenie 8, Sredniy Kislovskiy Pereulok, Moscow 125009, Russia
Administrative +7 495 705 9619
Correspondent Banking +7 495 745 8987 Fax: +7 495 745 8122
SWIFT: MICURUMM Теlex: 485391, 485393 MICU RU
http://www.micex.ru/group/settlementhouse/portrait
NDC
1/13, stroenie 4, Sredniy Kislovskiy Pereulok, Moscow 125009, Russia
Service Development & Client Relations : +7 495 232 05 14 Customer Services : +7 495 956 2789 Corporate Actions and Issuer Relations: +7 495 232 5253 Public Affairs: +7 495 232 0910 Fax: +7 495 745 8122
http://www.ndc.ru, http://isin.ru