Client ExperienceNDC sets new technology standardsin Russia with TCS BaNCSThe Russian securities market has emerged as one of the Customerlargest growing markets in the world. Their financial assets The National Depository Centerhave continuously exceeded the nation’s GNP and the stock (NDC)market’s capitalization crossed 1.3 trillion dollars in 2008.Russia aims to become an international financial center in the Industryregion. To achieve this, Russia needs to make its markets more Capital Marketsefficient and attractive to investors, increase transparency and Offeringreduce investment risks. Market InfrastructureNDC, the largest settlement depository in Russia, embarkedon a technology modernization program to reach new levelof productivity, scalability and reliability. Considering TCS’extensive experience with other Central SecuritiesDepositories (CSDs) across the world, NDC engaged with TCSBaNCS to upgrade their market infrastructure technology,thereby, facilitating their objectives.With TCS’ solution, NDC was able to deploy a moderntechnology platform, providing web-based access to marketparticipants in Russia for the first time. The new systemconforms to international standards and is also tuned forhigh performance.
Client ExperienceAbout the ClientNDC is the largest settlement depository in Russia, servicing the full range of debt and equitysecurities of Russian issuers. It is the central settlement depository for sovereign bonds,serves more than 99% of transactions with the corporate, sub-federal and municipal debt,more than 99% of on-exchange transactions with equities and ETFs, and OTC trades.The international rating agency Thomas Murray has assigned NDC an ÀÀ- rating (“very lowrisk” with a “stable” outlook) as a central depository. NDC is Russias national numberingagency, and the substituting numbering agency for the CIS, authorized to assign theinternational ISIN and CFI codes.MICEX, a leading burse in the Russian capital market, and the Bank of Russia founded the NDCin 1997. Presently among its shareholders are also GPB OJSC (Gazprombank), EvrofinansMosnarbank, Rosbank, VTB Bank (Vneshtorgbank), Bank of Moscow, Rossiysky Credit Bank,Vnesheconombank, ING Bank Eurasia, JP Morgan Bank International LLC, UniCredit,Deutsche Bank, and Sberbank. NDC has stakes in other institutions of the financialinfrastructure such as Depository Clearing Company CJSC (37.29%), Settlement DepositoryCompany CJSC (28.54%) and in Bank "National Clearing Centre" CJSC (0.27%).Usage of electronic data interchange for communication with customers and network ofbranches and representative offices covering Russias largest business centers give NDC anopportunity to service its participants from all over Russia.Business Situation standards. The depositary therefore embarked on a technology modernization initiative that wouldTowards becoming an International Financial Center, facilitate its transformation as the central depositoryFederal Service for Financial Markets (FFMS) was in Russian market.established in accordance with President VladimirPutin’s Decree No. 314 “On the System and Structure of NDC needed a solution that was easily customizableFederal Executive Branch Agencies,” dated 9 March and scalable. NDC selected TCS’ proven the market2004. The key objective included maintaining stability infrastructure solution from TCS BaNCS as the solutionin the financial markets, making the markets more promised to deliver a state-of-the-art technologyefficient and attractive to investors, increasing market platform within a quick deployment timeframe.transparency and reducing investment risks. NDC upgraded its settlement and depository systemsAs part of its growth strategy, NDC wished to be the using the market infrastructure solution from TCScentral depository, which was expected to make the BaNCS to a modern web-based platform providingRussian stock market more liquid at lower risk levels. In its customers and partners the benefits of latestorder to do so, it needed to upgrade its technology technology while complying with global standardsplatforms and bring these on par with global banking such as G30, SWIFT, 1SO 15022.
Client ExperienceTCS Solution BenefitsTCS customized its solution to integrate it into NDC’s The market infrastructure solution from TCS BaNCSdepository infrastructure. The market infrastructure provided NDC with the technological platform thatsolution from TCS BaNCS provided NDC with delivered the following benefits:functionality which complied with the requirements of n Helped NDC achieve the CSD statusthe international investment community for a CSD, andat the same time, accounted for Russian regulatory n Scalable system built on the latest technology withrequirements. the ability to support future business needsSome key features of the solution were: n Compliance with global standardsn Multi-level accounting structure with the ability to n Web-based solution that automated business capture accounts pertaining to deponents and its processes, resulting in improved operational client, sub depository and its investor accounts efficiencyn Real-time interface with multiple stock exchanges – n Generalized messaging framework to support MICEX, SICEX, SPICEX proprietary EDI format and SWIFT formatn Support for SWIFT/SWIFT-Rus messagingn Support for a wide range of settlement models, TCS is a global player and its solutions are seen by which include major international institutions to be of high quality. - Gross Settlement NDC has chosen the market infrastructure solution from - Net Settlement TCS BaNCS (formerly called eClearSettle) as the next generation platform because its functionality complies - Bridge Settlement with the requirements of the international investment - Adjustments with Registrar/Transfer Agents community for the Central Securities Depository and at the same time accounts for domestic specifics. - Inter-depository Settlement - Nikolay Egorov,n Support for high precision numbers - 34 digit Director, NDC, and Senior VP and Member numbers with 8 digit precision of the Executive Board, MICEX, Russian Global reach through an internet based solution