02 February 2018
Reporter: Brian Bollen

Russian repo on the up, and down

Russia’s National Settlement Depository's (NSD's) 2017 annual results show a 12 percent increase in the value of repo transactions which the Federal Treasury performed using the NSD’s collateral management system (CMS), compared with the previous year.

Repo transactions reached RUB 41.9 trillion (USD 7.44 trillion) in 2017, representing 1,796 transactions.

In stark contrast, the value of repo transactions with the Bank of Russia performed using the NSD’s CMS in 2017 was RUB 688 billion (USD 12.2 billion) – this was a fraction of the equivalent figure in 2016, given as RUB 9,869 billion (USD 175.27 billion).

The reasons behind the significant year-to-year drop off in the central bank’s repo is currently unclear and the Bank of Russia has not responded to requests for comment.

In 2017, 33 clients that concluded repo transactions with the Federal Treasury used the NSD’s service for the automatic selection and return of securities from accounts with NSD to clearing accounts with the NCC. As a result, approximately 3,000 automatic transfers were formed in 2017.

The number of trades registered with the NSD’s repository exceeded 11 million in 2017, compared with just 2.5 million in 2016.

The NSD said that the Moscow Exchange Group plans to continue to develop the NSD’s CMS for servicing on-exchange and over-the-counter repo and derivative segments.

Other highlights from the NSD include the the value of securities under custody reaching RUB 39.4 trillion (USD 698.5 million).

Russia’s NSD conducted the first transaction using the blockchain platform and settled commercial bonds.

The number of corporate actions related to Russian securities rose 6 percent and amounted to 15,812. Of them 4,067 shareholder meetings were initiated using the electronic voting technology.

The number of corporate actions involving foreign securities grew 84 percent and reached 14,650.

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