Republican Unitary Enterprise "Republican Central Securities Depository" Activity report. Minsk 2014

Transcription

1 Republican Unitary Enterprise "Republican Central Securities Depository" Activity report Minsk 2014

2 CONTENT 1. General information 3 2. Principal events Centralized storage of securities Depository system of Belarus Services Securities custody activities Other activities in the sphere of financial intermediation International activities Results of financial-economic activity Financial statements. 25 2

3 1. General information History of the Republican Unitary Enterprise "Republican Central Securities Depository" (hereinafter - RUE "RCSD") started in June 1995 with the foundation of CJSC "Republican Central Securities Depository". In September 1998 in accordance with the Decree of the President 366 of July 20, 1998 "On improving the system of state regulation of the securities market" CJSC "RCSD" was reformed into a state-owned enterprise "Republican Central Securities Depository". RUE "RCSD" functions as the central securities depository in Belarus in accordance with the Presidential Decree 277 of April 28, 2006 "On some issues of securities market regulation". RUE "RCSD" performs the following functions: acceptance of securities issues for the centralized custody and assignment of the identification code to each securities issue; keeps the correspondent nominee accounts of depositories; maintains unified reference books and catalogs of the depository system; regulation of the depository system; ensuring settlement of securities transactions between depositors of different depositories by transferring securities on correspondent nominee accounts; provides interaction between depositories; acts as a depositary; performs other functions in accordance with the legislation of the Republic of Belarus: - allocates ISIN and CFI codes to the securities if Belarusian issuers (functions of the National Numbering Agency of the Republic of Belarus), - e-service provider of information about securities the rights for which are limited to mortgage obligations and a provider of information to banks, non-bank financial and leasing organizations (functions of the operator of a public information resource on securities). 3

4 2. Principal events 08 Apr 2014 RUE "Republican Central Securities Depository" took participation in the working meeting of representatives of the stock markets of the Russian Federation and the Republic of Belarus on the topic: "Risk Management and peculiarities of supervision, licensing under centralized accounting infrastructure of the Republic of Belarus, and role of selfregulatory organizations". The organizers of the meeting were: SRO "National Securities Market Association", CJSC Registration Company "STATUS" (Russia), National Settlement Depository (Russia), JSC Belarusian Currency and Stock Exchange (Belarus). 13 May 2014 The representatives of experts group from the World Bank visited RUE "Republican Central Securities Depository" within the framework of their visit to the Republic of Belarus regarding the development of the internal market borrowings. During the meeting the issues of depository system of the Republic of Belarus, depository operations with government securities and settlement of securities transactions were discussed, as well as interaction with Belarusian Currency and Stock Exchange JSC. 29 May 2014 At the initiative of Priorbank OJSC (Minsk, Belarus) a working meeting with representatives of Citigroup Global Markets Limited (London, England) and Raiffeisen Bank International (RBI) (Vienna, Austria) was held in RUE "Republican central securities depository". During the meeting the depository system of the Republic of Belarus was presented, the structure of securities accounts was discussed, as well as the process of securities settlement, business continuity plans, and prospects for the development of the accounting system and the possibilities of mutual cooperation. 4

5 24 Jun 2014 RUE "Republican Central Securities Depository" was included in the structure of shareholders of National Settlement Depository (Moscow, Russia) Sept 2014 RUE "Republican Central Securities Depository" participated in XI International Conference of the Association of Eurasian Central Securities Depositories on the topic: Securities trading in the electronic age regulation, competition and technology, taking place in Baku (Azerbaijan Republic) organized by The National Depository Center CJSC of the Republic of Azerbaijan. 5

6 3. Centralized storage of securities 3.1. Issuable securities In accordance with the applicable legislation of Belarus RUE "RCSD" as the Central Securities Depository provides central storage of all securities in respect of which the custody activities are executed. As of January 1, 2015 the number of issuable securities on the centralized storage in RUE "RCSD" was 5355 with total issue volume billion US dollars. The number of issues per year increased by 174 (3.25%), total emission volume by 2.06 billion US dollars (7.8%). The structure of total emission volume of issuable securities kept on the centralized storage at par value January 01, ,06 5,74 1,2 0,94 18,91 Shares Commercial bonds Government bonds Corporate bonds Municipal bonds Shares As of January 1, 2015 the number of shares issues on the centralized storage in RUE "RCSD" was in comparison with issues January 1, 2014 (decrease of 11 issues or 0.25%). The nominal value of shares was trillion Belarusian rubles (18.9 billion US dollars) that was trillion Belarusian rubles more than January 1, 2014 (equivalent amount in US dollars decreased by 0.67 billion). The number of issuers in 2014 decreased in comparison with 2013 by 11 issuers and January 1, 2015 counted 4228 issuers. Among issuers there were 55.9 % open joint stock companies and 44.1 % closed joint stock companies % of the total emission volume was the share of open joint stock companies. 6

7 The number of share issues in Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sept 1 Oct 1 Nov 1 Dec Corporate bonds As of January 1, 2015 the number of corporate bond issues on the centralized storage in RUE "RCSD" was 756 in comparison with 677 issues January 1, 2014 (increase of 79 issues or 11.7%). The nominal value of corporate bonds was 6.75 billion US dollars that was 0.78 billion US dollars more than January 1, The bonds were denominated in the following currencies: Belarusian ruble amounting to trillion rubles (4.46 billion US dollars); US dollar - amounting to 1.4 billion US dollars; Euro - amounting to 0.59 billion (0.73 billion US dollars); Russian ruble - amounting to 8.38 billion rubles (0.15 billion US dollars); Polish Zloty - amounting to 1.6 billion (0.46 billion US dollars). The number of issuers in 2013 increased compared to 2012 by 18 issuers and counted 248 issuers. 7

8 The number of issuers in 2014 increased compared to 2013 by 36 issuers and January 1, 2015 the number was 284 issuers. The structure of issuers consisted of 26.4 % open joint stock companies, 15.5% - closed joint stock companies and 58.1 % - issuers - legal entities with another pattern of ownership % of the total issue volume and 92.5 % of the total emission volume were the share of open joint stock companies, 13.2 % of the total issue volume and 3.55 % of the total emission volume were the share of closed joint stock companies, 53.6 % of the total issue volume and 3.95 % of the total emission volume were the share of other issuers. The number of corporate bond issues in Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sept 1 Oct 1 Nov 1 Dec Commercial papers As of January 1, 2015 the number of commercial paper issues on the centralized storage in RUE "RCSD" was 79 in comparison with 51 issues January 1, 2014 (increase of 28 issues or 54.9 %). 8

9 The nominal value of commercial papers was trillion Belarusian rubles (1.06 billion US dollars) that was 7.81 trillion Belarusian rubles (0.55 billion US dollars) more in comparison with The number of commercial paper issues in Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sept 1 Oct 1 Nov 1 Dec 1 The number of issuers in 2014 increased compared to 2013 by 7 issuers and January 1, 2015 the number of issuers was 26 issuers. The structure of issuers consisted of % open joint stock companies, 33.77% - closed joint stock companies and % - issuers - legal entities with another business legal structure % of the total issue volume and % of the total emission volume were the share of open joint stock companies, % of the total issue volume and 20.4 % of the total emission volume were the share of closed joint stock companies, 63.3% of the total issue volume and % of the total emission volume were the share of other issuers. 9

10 Municipal bonds As of January 1, 2015 the number of municipal bond issues on the centralized storage in RUE "RCSD" was 123 in comparison with 78 issues January 1, 2014 (increase of 45 issues or 57.7 %). The nominal value of municipal bonds was 0.94 billion US dollars that was 0.04 billion US dollars more in comparison with The bonds were denominated in Belarusian rubles to the amount of 9.54 trillion rubles (0.8 billion US dollars) and in dollars U.S. to the amount of 0.14 billion US dollars. The bond issuers were the local executive and administrative bodies. The number of issuers in 2014 increased in comparison with 2013 by 22 issuers and January 1, 2015 counted 49 issuers. The number of municipal bond issues in Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sep 1 Oct 1 Nov 1 Dec Government bonds of the Republic of Belarus The government bonds were issued by the Ministry of Finance of the Republic of Belarus. As of January 1, 2015 the number of government bond issues on the centralized storage in RUE "RCSD" was 91 in comparison with 59 issues January 1,

11 The nominal value of government bonds of the Republic of Belarus was 5.46 billion US dollars that was 1.69 billion US dollars more than January 1, The bonds were denominated in Belarusian rubles to the amount of 30.0 trillion rubles (2.52 billion US dollars) and in US dollars to the amount of 2.44 billion US dollars, in Euro to the amount of 0.4 billion Euros (0.5 billion US dollars). The number of government bond issues of the Republic of Belarus in Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sept 1 Oct 1 Nov 1 Dec Bonds of the National bank of Belarus As of January 1, 2015 the number of bonds issues of the National bank of Belarus, placed on the centralized storage in RUE "RCSD" amounted 4 issues that was 1 issue more than January 1, The nominal value of bonds of the National bank of Belarus was million US dollars that was million US dollars) more than January 1,

12 The bonds were denominated in Belarusian rubles to the amount of 0.17 trillion rubles (14.38 billion US dollars) and in US dollars to the amount of 30.0 billion US dollars, in Euro to the amount of billion Euros (236.6 billion US dollars). The number of bond issues of the National bank of Belarus in Jan 1 Feb 1 Mar 1 Apr 1 May 1 Jun 1 Jul 1 Aug 1 Sept 1 Oct 1 Nov 1 Dec Non-issuable securities As of January 1, 2015 there were 423 uncertified mortgages on the centralized storage in the depository system of the Republic of Belarus that was 19 uncertified mortgages less than January 1, Record of rights to uncertified mortgages is carried by the depositories: - Belagroprombank JSC; - Belarusbank JSC; - Belinvestbank JSC; - BPS-Sberbank JSC; - "RCSD" RUE. 12

13 Belagroprombank JSC Belinvestbank JSC 321 "RCSD" RUE Belarusbank JSC BPS-Sberbank JSC Uncertified mortgages recorded in the depository system in term of depositories January 1,

14 4. Depository system of Belarus RUE "RCSD" is an infrastructure organization of the securities market of the Republic of Belarus, ensuring the operation of two-tier depository system. Two-tier depository system consists of a central depository and 33 depositaries, which have established correspondent relations with RUE "RCSD", 17 of which are the structural units of banks, 16 - nonbank depositories. The main objective of the depository system is to provide centralized storage of securities (shares, government bonds, bonds, uncertified mortgages) and rights recording to these securities. Ranking of the depositories by number of issuers January 1,

15 Ranking of the depositories according to the average monthly number of issuers in 2014 Ranking of the depositories according to the average monthly volume of services rendered by RUE "RCSD" in 2014

16 The absolute majority of the depositories has strong correlation between share of issuers served by them in the total number of Belarusian issuers and volume share of services rendered to them by the central depository in total services volume of the central depository. Comparing the rankings by volume of services rendered by RUE "RCSD" and the ranking by number of issuers 23 second-level depositories have the difference no more than in 3 positions; four depositories have the difference in 4-6 positions, three depositories in 7 positions, and one depository in 18 positions. With the concurrence of the Ministry of Finance of the Republic of Belarus and the National Bank of Belarus RUE "RCSD" has given the status of the authorized depository to fifteen depositories (structural units of commercial banks). The status of the authorized depository entitles to record rights to government securities and securities of the National Bank of Belarus. The National Bank acts as the authorized depository, without passing the procedure of obtaining the specified status. The authorized depositories register rights to government securities and securities of the National Bank of the Republic of Belarus on the depository accounts, opened in the name of securities owners, as well as conduct settlement of such securities transactions. 16

17 5. Services RUE "RCSD" provides services to its customers in the framework of two types of economic activity: securities custody activities; other activities auxiliary to financial intermediation. Structure of services rendered in 2014 by economic activities at the securities market 3,2% Securities custody activities 96,8% Other activities auxiliary to financial intermediation The securities custody activities include the following services: services to depositories under agreements for the establishment of correspondent relations; services to securities issuers under agreements for custody services; services to depositors under agreements for custody services; services to "Belarusian Currency and Stock Exchange" OJSC (BCSE) under agreement to perform the functions of the settlement depository. Other activities in the field of financial intermediation include the following services: consulting support and registration of securities transactions; consulting services rendered to issuers who have signed agreements for consulting services on the securities market; allocation of the international ISIN and CFI codes to securities issues of the Belarusian issuers; reporting of data in the framework of agreements on provision of information services. 17

18 Structure of services rendered in Securities custody activities Services to depositories under agreements for the establishment of correspondent relations RUE "RCSD" serves 33 depository, residents of the Republic of Belarus, as well as 5- non-residents depositories of the Republic of Belarus (depositories of the Russian Federation and Ukraine) under agreements for the establishment of correspondent relations: NKO CJSC National Settlement Depository (Russian Federation, Moscow); OJSC Specialized depository INFINITUM (Russian Federation, Moscow); OJSC SEB Bank (Russian Federation, Saint-Petersburg); CJSC Uni-Credit Bank (Russian Federation, Moscow); PJSC National Depository of Ukraine (Ukraine, Kiev). The depositories, residents of the Republic of Belarus, are served in regard of issuable securities (stocks and bonds) and nonissuable securities (uncertified mortgages).

19 According to the agreements with depositories RUE "RCSD" provides information on an information request Registry collection when record of rights to all or part of the securities of the issue is carried out not in the depository of the issuer. Thus, there are services RUE "RCSD" provided during 2014: incoming information request Registry collection were processed; information requests Registry collection were sent on RUE "RCSD" initiative; messages with information about securities owners were sent. The number of inter-depository transfers for this period accounted operations; the number of formed issue profiles To control the implementation of accounting operations on the depository accounts RUE "RCSD" carried out a daily data verification of depository accounting and accounting operations by providing statements of transactions on correspondent depository accounts at the end of the trading day to the depositaries statements of transactions on correspondent depository accounts were provided during this period of time Functions of settlement depository According to the agreement made with "Belarusian Currency and Stock Exchange" OJSC RUE "RCSD" holds settlements by securities on trading results on the day of the transaction on the correspondent depository accounts and depository accounts of CSD depositors. Within the scope of the agreement RUE "RCSD" held 4844 blocking operations of securities for trading in the stock exchange during 2014 (5991 operations - in 2013, i.e. the number of operations for this period of time decreased by 1147 or 19%) Services to securities issuers and depositors under agreements for custody services According to the current law RUE "RCSD" performs depository activities. As of January 1, 2015 the central depository signed agreements with 69 issuers for custody services, as well as with 66 shares issuers including 48 issuers of open joint stock companies, 18 closed joint stock companies and 3 bonds issuers including the Ministry of Finance of the Republic of Belarus government bonds issuer. RUE "RCSD" is the depository of the Ministry of Finance. 19

20 The central depository signed agreements with 85 depositors, 1120 organs of government and state unitary enterprises. The number of the issuers on custody services is 69, the number of served depository accounts , including savings depository accounts, 1274 full-functional depository accounts opened in connection with signing of the depository agreement or the agreement for custody services. During the reporting period depository operations were conducted on the depository accounts of the securities owners opened in RUE "RCSD Other activities in the sphere of financial intermediation Receipt of documents and preparation of information on circulation of bills According to the Presidential Decree of the Republic of Belarus of April 28, "On regulation improvement of bills circulation in the Republic of Belarus" the documents on bills circulation are provided to RUE "RCSD". The documents are provided by legal entities registered in the Unified State Register of legal entities and individual entrepreneurs, as well as by individuals, permanently or temporarily residing in the territory of the Republic of Belarus at commission of the following operations: - Payment of bills; - Issue of bills; - Other form of transfer or receipt of a bill or its copy. RUE "RCSD" received the documents on the issue of 1 bill and payment of 57 bills for the period from 1 January 2014 to 31 December Legal entities are drawers and drawees in all cases. 20

21 State information resource on securities, rights to which are limited to mortgage commitments According to the Decree of Council of Ministers of the Republic of Belarus dated "On some issues of the establishment and operation of an integrated information resource on property, rights to which are limited to mortgage commitments" the integrated information resource on the property, rights to which are limited to mortgage commitments, was created in the Republic of Belarus. The integrated resource is the interrelated state information resources that contain information on property, rights to which are limited to mortgage commitments, and integrated into a nationwide automated information system. The owner of the state information resource on securities, rights to which are limited to mortgage commitments is the Ministry of Finance of the Republic of Belarus. According to the Council of Ministers dated "On some measures for the implementation of the Presidential Decree of the Republic of Belarus of November 11, " RUE "RCSD" is the operator of the information resource. This Regulation was approved by. Furthermore in accordance with the Council of Ministers of the Republic of Belarus of "On basic electronic services" RUE "RCSD" is a supplier of e-services for providing information on securities, encumbered by mortgage commitments, in order to further provide information to banks, non-bank financial institutions and leasing organizations. During 2014 as the operator and provider of the electronic service of the above mentioned information resource, RUE "RCSD" accepted, processed and transmitted to the nationwide automated information system 227 information messages of the pledged securities blocking and 250 messages of the pledged securities unblocking Information services In 2014 RUE "RCSD" rendered services for information transfer in accordance with the agreements on exchange of information, concluded with Russian National Settlement Depository (Moscow, Russia), CJSC INTERFAX, CBONDS LIMITED (Riga, Latvia), and Infobroker Ltd. (Minsk, Belarus). 21

22 6. International activities Since 2004 RUE "RCSD" is a member of the Association of Eurasian Central Securities Depositories which unites the CSDs of the Commonwealth of Independent States (CIS). The main purpose of the Association is to develop and enhance depository operations, create a common depository "environment", and integrate the CSDs of the CIS countries into the global securities settlement system. RUE "RCSD" signed the following agreements and memoranda: Georgian Central Securities Depository Agreement on Cooperation in the Sphere of Depository Systems (4 November 2003); Central Securities Depository of the Republic of Kazakhstan (KACD) Agreement on Cooperation in the Sphere of Depository Systems (25 November 2003); Central Securities Depository of the Republic of Uzbekistan Agreement on Cooperation in the Sphere of Depository Systems (4 December 2003); National Securities Depository of the Republic of Moldova Agreement on Cooperation in the Sphere of Depository Systems (25 May 2004); National Depository of Ukraine Agreement on Cooperation in the Sphere of Depository Systems (29 July 2004); Association of Eurasian Central Securities Depositories Resolution on the Establishment of the Association of Eurasian Central Securities Depositories (22 December 2004); National Depository Center of the Azerbaijan Republic Memorandum of Cooperation (7 September 2007); Association of National Numbering Agencies Partnership Agreement (6 June 2008); National Securities Depository of the Republic of Poland (KDPW) Memorandum of Understanding (3 December 2009); National Settlement Depository (Russian Federation) Memorandum of Cooperation (4 April 2013). 22

23 On 4 April, 2013 RUE "RCSD" signed Foreign Nominee Account Agreement with NSD (Russian Federation). Since June 2008, RUE "RCSD" is a partner of the international Association of National Numbering Agencies and starting from December 1, 2008 RUE RCSD acts as the National Numbering Agency of Belarus with the authority to allocate international identification codes to securities issues of the Belarusian issuers. The purpose of ISIN (International Securities Identification Numbers) and CFI (Classification of Financial Instruments) allocation is a standardized identification of issuers securities and other financial instruments within a single system and a uniform classification of financial instruments. For this reporting year in accordance with the standards ISO 6166 and ISO RUE "RCSD" has allocated international ISIN and CFI codes to one issue of bonds. 7. Results of financial-economic activity In 2014 RUE "RCSD" rendered services totaling 4990 million Belarusian rubles or thousand US dollars; service revenue was 967 million Belarusian rubles or 81.3 thousand US dollars, realized services profitability %. In the reporting year RUE "RCSD" fulfilled all the financial requirements to the professional participants of the securities market. At the beginning and the end of 2014, equity capital of RUE "RCSD" was and billion Belarusian rubles, or and million US dollars respectively. Solvency and financial indicators corresponded to the statutory values: current liquidity ratio was and at the beginning and the end of 2014 while the norm was at least 1.5; current assets ratio and 1.72 while the norm was at least 0.2; financial liabilities ratio and while the norm was at least

24 Rate of equity capital, billion BYR Current liquidity ratio (C1) 4,5 4 3,5 3,399 3, ,5 2 1, ,5 5 0 minimum permissible value value at the beginning of the year value at the end of the year 0 minimum permissible value value at the beginning of the year value at the end of the year Current assets ratio (C2) Financial liabilities ratio (C3) 3 2,5 0,9 0,8 0,7 2 1,5 0,6 0,5 0,4 1 0,5 0,3 0,2 0,1 0 minimum permissible value value at the beginning of the year value at the end of the year 0 maximum permissible value value at the beginning of the year value at the end of the year 24

25 8. Financial statements 8.1. Balance sheet ASSETS Line code As of 31 December 2014 As of 31 December I. LONG-TERM ASSETS Fixed assets Intangible assets Investment in tangible assets Including: investment property items of financial rent (leasing) other income-bearing investments in tangible assets Investments in long-term assets Long-term investments Deferred tax assets Long-term receivables Other long-term assets TOTAL for section I II. SHORT-TERM ASSETS Inventories goods rearers and fatteners work in progress finished products and good shipped goods other inventories Long-term assets held for sale Prepaid expenses Value-added tax on purchased goods, work and services

26 Short-term receivables Short-term investments Cash and cash equivalents Other short-tem assets TOTAL for section II BALANCE EQUITY AND LIABILITIES Line As of 31 As of 31 code December 2014 December III. EQUITY CAPITAL Authorized capital Unpaid capital Own equities (share capital) Surplus reserves Capital surplus Retained (undistributed) earnings (uncovered loss) Net earnings (losses) of reporting period Special-purpose funding TOTAL for section III IV. LONG-TERM LIABILITIES Long-term borrowings and loans Long term lease payments Deferred tax liabilities Deferred revenues Reserves for deferred expenses Other long-term liabilities TOTAL for section IV V. SHORT-TERM LIABILITIES Short-term borrowings and loans Short part of long-term liabilities Short-term accounts payable payables to suppliers, contractors and performers advance payments received

27 taxes and levies social insurance and security remuneration of labor lease payments payables to property owner (incorporators, participants ) other creditors Liabilities held for sale Deferred revenues Reserves for deferred expenses Other short-term liabilities TOTAL for section V BALANCE Income statement Description of indicators Line During During code Sales of products, goods, work, services Cost price of products, goods, work, services Gross profit ( ) Executive expenses Distribution costs Sales profit (loss) of products, goods, works, services ( ) Other operational income Other operational expenses Profit (loss) from current operations (± ) Income from investment activities Including: income on disposals of fixed assets, intangible assets and other long-term assets income from participation in the authorized capital of

28 other organizations interest receivable Other income from investment activities Investment activities expenses Including: Losses on disposal of fixed assets, intangible assets and other long-term assets Other expenses from investment activities Income from financial activities Including: Exchange rate differences on recalculation of assets and liabilities Other income from financial activities Expenses from financial activities Including: Interest payable Exchange rate differences on recalculation of assets and liabilities Other expenses from financial activities Profit (loss) from investment and financial activities ( ) Profit ( loss) before taxation (±090±140) Profit tax Change in deferred tax assets Change in deferred tax liabilities Other taxes and fees countable from profit (income) Other payments countable from profit (income) Net profit (loss) (± ±170± ) Revaluation of long-term assets, not included in net income (loss) Other operations, not included in net income (loss) Aggregate income (loss) (±210±220±230) Basic earnings (loss) per share Diluted earnings (loss) per share

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