NSD shareholders conclude new shareholder agreement
On 21 November 2019, shareholders of National Settlement Depository (NSD), which is Russia’s central securities depository and part of the Moscow Exchange Group, entered into an amended shareholder agreement with respect to NSD, which has become a party to the agreement. MOEX has a 99.997% equity interest in NSD, while 34 leading financial market participants including banks, brokerages, registrars, the Republican Central Securities Depository (Belarus) and international central securities depositories such as Euroclear Bank SA/NV and Clearstream Banking S.A. each own one share of NSD. In view of this ownership structure, the amended agreement will help ensure the balance of interests between the shareholders and NSD clients.
Since the previous shareholder agreement was concluded in 2011, NSD has obtained the status of CSD and extended its functions in relation to the market infrastructure, was qualified as a systemically important repository and a nationally important payment system. Furthermore, the regulatory base for the oversight of the central securities depository has been amended substantially. These factors caused the agreement to be updated.
The Moscow Exchange Group operates Russia’s main trading platform for currencies, money market instruments, equities, bonds, derivative instruments and commodities. The Group includes the central securities depository (National Settlement Depository) and a clearing center (National Clearing Centre), performing the functions of central counterparty on the markets, which allows MOEX to offer its clients a full range of trading and post-trading services including feature rich, assured net settlement solutions. Moscow Exchange held an initial public offering of its shares on 15 February 2013 (ticker: MOEX).
NSD was assigned status as systemically important settlement depository and systemically important repository by the Bank of Russia. The NSD payment system is qualified as systematically and nationally important. NSD provides a wide range of services including core depository, cash settlement, repository and information services, as well as collateral management and technology. It deals with central securities depositories and international clearing houses in seven countries, and has correspondent account with the largest international and Russian banks. The total value of assets under custody at NSD reached RUB 49.2 trillion as of 30 September 2019.