11/11/2015Pavel AndrianovHead of IT Development

QUALITY ASSURANCE IN RUSSIAN NATIONAL SETTLEMENT DEPOSITORY (NSD) 

2

The Russian CSD

First trade repository in Russia with over 1 178 clients as of October 01, 2015

Local Operating Unit for assigning Legal Entity Identification codes

Operator of systemically and nationally important payment system

Systemically important CSD, Settlement Depository and Repository

More than 18 years on depository services market

Member of the Moscow Exchange Group

The largest settlement depository in Russia, the CIS and Eastern Europe

Provides both bank and custody services to the clients

Settlement depository for the Moscow Exchange

Diversified assets on deposit

A European tariff model

Servicing the Moscow Exchange currency exchange market

Participant of the major working groups organized by Russian regulators

Assets under custody,USD, blnNumber of custody accounts

Num. of securities transactions, mln (2012)Vol. of securities transactions, USD trln (2012)Num. of cash transactions, mln (2012)Vol. of cash transactions, USD trln (2012)

Capital, USD mln

FACTS AND FIGURES

Assets under Custody*, USD bln

Number of settled securities transactions, ths pcs.Value of settled securities transactions, USD bln

437

1 792

2 840

Value of settled cash transfers**, USD bln

4 155

Number of registered trades in Repository, ths pcs.

319

9М15 YTD

Number of custody accounts, pcs. 3 731

* Value of securities under custody on behalf of clients** Covering only delivery money transfer on NSD clients’ accounts

Number of settled cash transfers, ths pcs.

758

Value of settledtrades in CollateralManagement, USD

bln

545

01.10.15

RUB / USD rate is 66.2367as of 30.09.2015

FIVE BUSINESS STREAMS

RepositoryCSDClearing &

Tri-party services

Cash settlement

services

Corporate Informatio

nCenter

RISK-MANAGEMENT

IT

CSD Safekeeping Settlement of on-exchange and OTC transactions (FOP, DVP) Corporate actions Tax agent services

CORPORATE INFORMATIONCENTER

Consolidated and verified information about securities, corporate actions and codes: ISIN, CFI, LEI

Valuation center

CASH SETTLEMENTSERVICES

Cash settlement services FX services Authorized currency control Cash accounts maintenance

CLEARING & TRI-PARTY SERVICES Clearing and collateral management (tri-party services)

REPOSITORY Registration of OTC repo trades and trades with derivatives

RELATED SERVICES NNA in Russia and Substitute NA for the CIS countries Local Operating Unit (LOU) for the Russian market (LEI assignment and verification) EDI system with registrars Providing access to SWIFT

3

IT AND NSD.

Current status:• Key IT systems were created and developed as in-house

solutions

• We use waterfall and iterative/agile technology

• IT staff more then 350 people (including outsourcing)

• We use several outsourcing companies

• We use the modern technology to manage quality and delivery (fast functional point (ffp), code review and integration continues)

Main goals:• Add functionality

• Improve quality

• Extend capacity

TECHONOLY OF QUALITY You Can’t Manage What You Can’t MeasureHow do we measure?

• Use task manager (Redmine) for all requests

• We have daily reports for key figures

• We have statistics and BI to analyze it

• We have progress bar for each stage of release

9/28/2

015

9/29/2

015

9/30/2

015

10/1/2

015

10/2/2

015

10/5/2

015

10/6/2

015

10/7/2

015

10/8/2

015

10/9/2

015

10/12

/2015

10/13

/2015

10/14

/2015

10/15

/2015

10/16

/2015

10/19

/2015

10/20

/2015

10/21

/2015

10/22

/2015

10/23

/2015

10/26

/2015

0500

1,0001,5002,0002,5003,0003,5004,000

Ready Plan

Qua

lity

of

ffp

TECHONOLY OF QUALITY You Can’t Manage What You Can’t MeasureWhat do we measure?

• Errors per ffp

• Retest iterations per error

• Requirements change amount per analyst

30 31 32 33 34 350.00%0.50%

1.00%

1.50%

2.00%

2.50%3.00%

3.50%

4.00%

Change

TECHONOLY OF QUALITY You Can’t Manage What You Can’t MeasureWhat do we measure?

• Errors per ffp in UAT

28 29 30 31 32 33 34 35 360.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

Errors

TECHONOLY OF QUALITY You Can’t Manage What You Can’t MeasureWhat do we measure?

• SLA

29.09

.2015

01.10

.2015

05.10

.2015

07.10

.2015

09.10

.2015

13.10

.2015

15.10

.2015

19.10

.2015

21.10

.2015

23.10

.2015

27.10

.2015

29.10

.2015

02.11

.2015

05.11

.2015

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

TestingAnaliticsDevelopmentStandart

QUALITY. STEP BY STEP

What have we implemented recently?• Fast Functional point methodology

• Behavior Driven Development (BDD)

• Code Review

• Continues Integration

• Post implementation review

• Performance and smoke test

• KPI for IT people

• SLA for outsourcing companies

QUALITY. OUR PLANS

What do we want to do over the next year?• Implement dedicated IT solution for QA

• Implement processes to check quality of the source code

• Make refactoring for the most important and complicated source codes

• Implementation institution of test leaders

• Hallway testing

CURRENT RESULTS

Release 30 Release 31 Release 32 Release 33 Release 34 Release 350

5001000150020002500300035004000

897 1,098

2,3782,779 3,048

3 552Productivity. Function points developed per release cycle

Release 30 Release 31 Release 32 Release 33 Release 34 Release 350

0.050.1

0.150.2

0.250.3 0.258 0.258

0.131 0.116 0.098

0

Quality. Bugs in production environment per function point developed for first 6 weeks after release deployment

CURRENT RESULTS

29 30 31 32 333.50

3.60

3.70

3.80

3.90

4.00

4.10

4.20

4.30

Quality of releases

Quality

THANK YOU!

CONTACTS

Tel., e-mail: Tel.: +7 (495) 234-48-27 доб. 4111

E-mail: andrianov@nsd.ru

Web-sites:

www.nsd.ru, www.isin.ru, www.aecsd.org, www.dcc.ru, www.lei-code.ru

Address:

12, Spartakovskaya str., Moscow, 105066, Russia

DISCLAIMER

This presentation has been prepared and issued by NSD (the “Company”). Unless otherwise stated, the Company is the source for all data contained in this document. Such data is provided as at the date of this document and is subject to change without notice

This document does not constitute or form part of, and should not be construed as, an offer or invitation for the sale or subscription of, or a solicitation of any offer to buy or subscribe for, any securities, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any offer, contract, commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company

The information in this document has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information or opinions contained herein. None of the Company, or any of its subsidiaries or affiliates or any of such person's directors, officers or employees, advisers or other representatives, accepts any liability whatsoever (whether in negligence or otherwise) arising, directly or indirectly, from the use of this document or otherwise arising in connection therewith

This presentation includes forward-looking statements. All statements other than statements of historical fact included in this presentation, including, without limitation, those regarding our financial position, business strategy, management plans and objectives for future operations are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance, achievements or industry results to be materially different from those expressed or implied by these forward-looking statements. These forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we expect to operate in the future. Important factors that could cause our actual results, performance, achievements or industry results to differ materially from those in the forward-looking statements include, among other factors: – Perception of market services offered by the Company and its subsidiaries– Volatility (a) of the Russian economy and the securities market and (b) sectors with a high level of competition that the

Company and its subsidiaries operate– Changes in (a) domestic and international legislation and tax regulation and (b) state policies related to financial

markets and securities markets– Competition increase from new players on the Russian market– The ability to keep pace with rapid changes in science and technology environment, including the ability to use

advanced features that are popular with the Company's and its subsidiaries' customers– The ability to maintain continuity of the process of introduction of new competitive products and services, while

keeping the competitiveness– The ability to attract new customers on the domestic market and in foreign jurisdictions– The ability to increase the offer of products in foreign jurisdictions

Forward-looking statements speak only as of the date of this presentation and we expressly disclaim any obligation or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation as a result of any change in our expectations or any change in events, conditions or circumstances on which these forward-looking statements are based