National Settlement Depository (NSD), Russia’s central securities depository, the National Securities Market Association (NSMA) and the Interfax International Information Group announce a beginning of interactions for distribution of the NSMA Price Center’s information. Data on fair value of more than 1,800 financial instruments calculated on a daily basis by the NSMA Price Center is integrated in the Reference United Data (RU DATA), in the EFIR Add-In, a system of market and credit risk calculation, and in the EFIR exchange terminal.
The NSMA Price Center clients will be able to get a daily assessment of securities’ fair values in compliance with the generally recognized methods; this is very important for holders of illiquid inrstuments. The subscribers will receive an access to instruments’ indicative quotations that will be taken into consideration for concluding transactions with counterparties or for market risk analysis and financial statement preparation as the quotation are recognized by the Bank of Russia. The clients will not need to develop and support their own methods of determining instruments’ fair values; they will get an opportunity to reduce their operational costs. The NSMA Price Center calculates fair values of bonds, shares traded on the Moscow Exchange, and standardized UIT units transactions with which are registered with the Moscow Exchange.
Financial instruments’ fair values are calculated by the NSMA Price Center on the basis of the NSMA Methods of fair value determination. The Methods are developed with the Bank of Russia’s support; they correspond to the IFRS requirements and regulatory acts issued by Russia’s Ministry of Finance. The Methods include the calculation of price parameters on the basis of four groups of indicators (market prices, NSMA fixing prices, zero coupon yield curve and data on issuers’ credit quality).
In 2014, the NSMA Price Center Methods was certified by Russia’s Guild of Investment and Financial Analysts году and successfully underwent an expert appraisal by the European Bond Commission.
The NSMA fair value calculation is conducted on the basis of hardware and software complex of NSD, NSMA’s strategic partner.