Central Bank of Russia assigns NSD and NCC status as systemically important financial institutions
The Central Bank of Russia (CBR) has assigned the National Settlement Depository (NSD) and the National Clearing Centre (NCC) status as systemically important financial markets infrastructure institutions.
NSD has been assigned status as systemically important central depository, systemically important settlement depository and systemically important repository.
NCC has been assigned status as a systemically important central counterparty.
Alexander Afanasiev, Chief Executive Officer of Moscow Exchange, said:
"Recognition of National Settlement Depository (NSD) and National Clearing Centre (NCC) – Moscow Exchange Group companies – as systemically important financial institutions underlines their special role in ensuring the stability of the Russian financial system. Both organisations have already been granted special status, and are subject to specific regulatory oversight: the regulator granted central securities depository status to the NSD in 2012, and the NCC was named as a qualified counterparty last year.
"The total value of securities on deposit at NSD is RUB 22.9 trillion; NCC has assets in excess of RUB 860 billion and its average daily clearing volume is RUB 1.2 trillion. Moscow Exchange Group recognizes its significant responsibility to provide for the functioning of the Russian financial markets infrastructure and deliver top-quality, modern services to Russian and international investors. Status as systemically important financial institutions also means there will be additional regulatory scrutiny of our activities and thus enhanced guarantees of reliability and transparency of our Group companies in the interest of all market participants."
Eddie Astanin, Chairman of the Executive Board, NSD, said:
"The assigned status of systemically important infrastructure signifies the highest level of NSD"s responsibility to both the regulator and the market. I can say with certainty that NSD will comply with this status in respect to reliable functioning, risk management, financial stability and a competitive product and service range."
Alexey Khavin, CEO of NCC, said:
"Status as a systemically important financial institution requires that we deliver even greater enhancement of the risk management system. I believe that for market participants this news is further demonstration of the reliability and financial strength of NCC as a partner that executes the function of central counterparty."
About Moscow Exchange
Moscow Exchange Group manages the sole multifunctional exchange platform in Russia for equities, bonds, derivative instruments, currencies, money market instruments and commodities. The Group includes the central depository (National Settlement Depository), and a clearing centre (National Clearing Centre), performing the functions of central counterparty on the markets, which allows Moscow Exchange to render the full spectrum of trading and post-trading services to its clients.
Moscow Exchange ranks among the world"s top 20 exchanges by total capitalization of securities traded, and also among the 10 largest exchange platforms by bonds and derivatives trading. Securities of over 700 issuers are admitted to trading on the securities market of Moscow Exchange, including securities of the largest Russian companies by market capitalization.
Moscow Exchange was formed in December 2011 as a result of a merger between Russia"s two main exchange groups - MICEX Group, the oldest domestic exchange and operator of the leading securities, foreign exchange and money market platform in Russia; and RTS Group, at the time the operator of Russia"s leading derivatives market. This combination created a vertically integrated public trading market across most major asset classes, which was reorganized into an open joint stock company (OJSC) and was named Moscow Exchange. Moscow Exchange held the initial public offering of its shares on 15 February 2013 (ticker MOEX).
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