Quality Assurance in Russia's National Settlement Depository (NSD) Pavel Andrianov, National Settlement Depository 11 November 2015 Trading Technology Trends & Quality Assurance Conference in St. Petersburg

1. 11/11/2015
Pavel Andrianov
Head of IT Development
QUALITY ASSURANCE IN
RUSSIAN NATIONAL
SETTLEMENT
DEPOSITORY (NSD)

2. 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, bln
Number 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 settled
trades in Collateral
Management, USD bln
545
01.10.15
RUB / USD rate is 66.2367
as of 30.09.2015

3. FIVE BUSINESS STREAMS
RepositoryCSD
Clearing &
Tri-party
services
Cash
settlement
services
Corporate
Information
Center
RISK-MANAGEMENT
IT
CSD
 Safekeeping
 Settlement of on-exchange and OTC transactions (FOP, DVP)
 Corporate actions
 Tax agent services
CORPORATE INFORMATION
CENTER
 Consolidated and verified information about securities, corporate actions and codes: ISIN, CFI, LEI
 Valuation center
CASH SETTLEMENT
SERVICES
 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

4. 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

5. TECHONOLY OF QUALITY
You Can’t Manage What You Can’t Measure
How 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
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Qualityofffp
Ready Plan

6. TECHONOLY OF QUALITY
You Can’t Manage What You Can’t Measure
What do we measure?
• Errors per ffp
• Retest iterations per error
• Requirements change amount per analyst
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
30 31 32 33 34 35
Change

7. TECHONOLY OF QUALITY
You Can’t Manage What You Can’t Measure
What do we measure?
• Errors per ffp in UAT
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
28 29 30 31 32 33 34 35 36
Errors

8. TECHONOLY OF QUALITY
You Can’t Manage What You Can’t Measure
What do we measure?
• SLA
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
29.09.2015
30.09.2015
01.10.2015
02.10.2015
05.10.2015
06.10.2015
07.10.2015
08.10.2015
09.10.2015
12.10.2015
13.10.2015
14.10.2015
15.10.2015
16.10.2015
19.10.2015
20.10.2015
21.10.2015
22.10.2015
23.10.2015
26.10.2015
27.10.2015
28.10.2015
29.10.2015
30.10.2015
02.11.2015
03.11.2015
05.11.2015
06.11.2015
Testing
Analitics
Development
Standart

9. 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

10. 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

11. CURRENT RESULTS
897
1,098
2,378
2,779
3,048
3 552
0
1000
2000
3000
4000
Release 30 Release 31 Release 32 Release 33 Release 34 Release 35
Productivity. Function points developed per release cycle
0.258 0.258
0.131
0.116
0.098
0
0.05
0.1
0.15
0.2
0.25
0.3
Release 30 Release 31 Release 32 Release 33 Release 34 Release 35
Quality. Bugs in production environment per function point developed for first 6 weeks after
release deployment

12. CURRENT RESULTS
3.50
3.60
3.70
3.80
3.90
4.00
4.10
4.20
4.30
29 30 31 32 33
Quality of releases
Quality

13. THANK YOU!

14. 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

15. 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