Registrars and depositories: 2021 and 2022 Q1 performance
Russian organisations that keep records of rights to securities became key players in the financial market in the new environment. Moreover, they are actively exploring adjacent niches. The Bank of Russia reflected the trends in the development of this industry in its 2021 and 2022 Q1 Review of accounting infrastructures’ performance.
As many as nine registrars have already been credited with the investment platform operator status, which allows them to provide an additional service to raise funds primarily for small and medium-sized enterprises. As of the end of 2022 Q1, the registrars had more than 47,000 registers with registered accounts of over 18 million private individuals and legal entities.
The majority of depositories (87.5%) also combine various activities in the securities market. This helps them optimise costs, boost competitiveness, and render comprehensive services to their clients.
In 2021, the total market value of securities in custody accounts rose by 11.8%, coming in at almost 92 trillion rubles, which accounts for about 70% of the national GDP. However, in 2022 Q1, the value of securities in custody accounts with Russian depositories expectedly decreased (by 10.8 trillion rubles, or −12%) — mainly due to a decline in the value of Russian issuers’ shares.
The review also covers measures taken by the Bank of Russia to support accounting infrastructures in the current environment.