After considering a request to assess the quality of NSD’s Valuation Center’s performance when determining the value of ruble-denominated bonds, the Bank of Russia, guided by the criteria specified in the Bank of Russia’s information letter of 29 March, 2013 No. IN-06-51/15 “On the Assessing of Valuation Centers’ Quality of Functioning”, has acknowledged the quality of NSD’s Valuation Center’s performance as satisfactory.
Calculations of the value of ruble-denominated bonds based on the Methodology approved by the Bank of Russia may be applied to more than 500 ruble-denominated bonds of Russian issuers with ratings assigned by international rating agencies (the “Big Three”). The methodology for calculating the value of securities has been developed by NSD’s Expert Council for prices, with the input from Interfax News Agency’ methodological group.
Eddie Astanin, the Chairman of the Executive Board, NSD, said:
We submitted an advanced high-quality product to the Bank of Russia for accreditation. The Valuation Center’s solution is unique due to applying best international practices and taking into account the most important information about the securities’ ownership structure and their imputed liquidity. I am sure that these features will make our product very popular on the market.
Vladimir Gerasimov, First Deputy General Director, Executive Director, Interfax News Agency, pointed out:
The launch of Russia’s first valuation center is a milestone in developing the infrastructure of the Russian financial market. The center’s methodology has been developed with Interfax’s information and methodological support. The Valuation Center’s data will let our clients better comply with regulatory requirements for reporting and risk management.
Prices calculated on the basis of the previous methodology for an expanded circle of instruments are broadcast as additional indicators.
The new methodology uses unique data supplied by the Central Securities Depository related to the distribution of security issues among market participants. It allows for a more precise calculation of liquidity indicators of assessed instruments; in turn, these indicators impact fair value. The methodology fully meets IFRS13 requirements.
The Valuation Center’s product is distributed via Bloomberg, Cbonds, Thomson Reuters, Interfax, and the Moscow Exchange.