02 February 2018
Moscow
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.

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
BoE release consultation on a new rule for central counterparties
16 February 2018 | London | Reporter: Jenna Lomax
BoE states that this proposed rule of written notice would “support the UK Government’s approach to the implementation of the EU Network and Information Systems Directive”
ASX sees 5.8 percent increase in collateral management activity
16 February 2018 | Sydney | Reporter: Jenna Lomax
The increase in the use of derivatives and OTC was due to a rise in futures trading, OTC clearing and collateral management activity
SBL Network bolsters its P2P securities lending team
16 February 2018 | London | Reporter: Jenna Lomax
SBL Network Limited has hired Charlotte Clout, reporting to Tammy Phillips, CEO at SBL
Citi’s agency lending sales chief departs
16 February 2018 | New York | Reporter: Drew Nicol
Citi’s Americas head of sales for it’s agency securities lending, collateral management, and separate account cash management businesses, Jeff Bonaldi, has left to pursue a number of entrepreneurial ventures
SIFMA testifies on legislative proposals regarding derivatives
15 February 2018 | Washington DC | Reporter: Brian Bollen
SIFMA has testified to the US House of Representatives Committee on Financial Services Subcommittee on areas that could make regulations more risk-sensitive, less complex and clearer
More than 35 percent of investors asked are planning to add to their European exposure in 2018
ECB rings collateral changes
14 February 2018 | Frankfurt | Reporter: Brian Bollen
The European Central Bank has issued a series of amendments relating to the Eurosystem’s monetary policy implementation