Product and Service Specifics

192

0

0

210

214

242

36

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149

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215

97

150

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Blue: main colour, fonts etc.

127

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127

166

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166

Grey: additional graphs colours

Red: highlight and key messages

Light purple: simple highlight

Product and Service Specifics

April 2012

2

Market microstructure 1 3

Stock Market 2 12

Derivatives markets (FORTS) 3 24

Agenda The Leading Global Exchange in a strong growth environment

FX Market

4 31

Market Data

6 41

2

IT services 7 43

Money Market 5 39

3

Market microstructure 1

3

What has been done and what is planned

Bringing business practices in

line with international standards

Development of the IPO/SPO

market

Task Done in 2011

• Adoption of the Law on the Central

Depository (CD)

• Launch of trading involving the Central

Counterparty

• Cancellation of the capital gain tax for

nonresidents

• Privatization in Russia

• Optimization of the issuance procedure

• Modernization of listing (e.g. new

quotation lists)

• Bringing the standards of information

disclosure and corporate governance in

line with international standards

• Changes in the requirements for

preservation of non-state pension

funds’ assets as a result of revaluation

(abolition of the requirement of the

annual breakeven result)

• Changes in regulations on information

disclosure: disclosure in English (with

subsequent translation into Russian),

financial reporting under IFRS

Attraction of foreign investors

Expected in 2012

• Ensuring compliance of the NSD with

requirements for CD

• Implementation of T+3 and DVP

settlements

• Bringing the clearing infrastructure in line

with international standards

• Liberalization of the criteria of investment of

the means of the Pension Fund of the

Russian Federation, non-state pension

funds and insurance companies

• Expanding the possibilities of investing the

means of sovereign funds

• Measures to motivate individual investors

• Creation of new types of instruments

(ETF, structured products)

• Modernization of technologies of access

to trading (DMA, co-location)

• Motivational tariff policy (e.g. volume

discounts)

• Creation of an English-speaking

Customer Support Center

• Regulation of cross trades

Creation of the Russian

investor base

4

Main market Main market

T+n Project Overview

Liquid shares

«Т0»

Market Sector

Standard

Liquid shares

«T+3»

5

•«T0», «T+3» (SPOT)

•«FORTS» (Derivatives)

•FX (next step)

Single cash position

•Collateral: RUB, USD or securities

•Collateral assets usable for delivery

Partial collateral

•Arbitrage strategies

•Currency hedge

Implementation of complex strategies

•Major international investors Increased liquidity

Instruments & Markets in T+n

Securities Market deals Negotiated deals Repo deals

Stocks TOP-35

►ССР

►T+ 3

►partial collateral

►ССР

partial collateral

T+0, T+1, …, T+3

►ССР

partial collateral

2 «REPO order books» (1 and 7 days), First part Т+0

«Direct REPO» (up to Т+7)

►Without CCP

Current Practice

►Without CCP

Current Practice

Other securities

►ССР

►T0

►100% collateral

►Without CCP

►T+0, …, T+3

►100% collateral

►Without CCP

►Т+1,…, Т+365

►“Direct REPO”

Liquid stocks of Russian companies and RDRs - TOP 35

Foreign securities

Liquid stocks of Russian companies and RDRs - TOP 50 Foreign securities

Government bonds

Liquid stocks of Russian companies and RDRs - TOP 50 Government bonds and marketable bonds of Russian issuers - TOP 15 Foreign securities

35

60*

75*

First stage

Second stage

Third stage

* - number of issuers

*

6

NSD – the CSD of the Russian Federation

Comments Modernization

New CSD law and NSD status

• Only one can run for CSD status

• No competition seen for NSD

• NSD is expected to get the status of the CSD in

July-August 2012

All additional AGC* requirements are met

• Special CSD regulation

• Finality of CSD settlement

• Special Obligatory reconciliation between the CSD

and registrars

• Status of CSD nominee accounts

• CSD records prevail registrars’ records

Now

NSD as CSD

7 * Association of Global Custodians

10,548 3,471

1,755

196 170 74 52 17

USA Japan UK Finland Germany Poland Russia Turkey

55%

49%

48%

37%

36%

26%

5%

1%

35%

27%

30%

56%

59%

27%

42%

84%

3%

1%

4%

3%

31%

3%

2%

7%

24%

21%

3%

1%

16%

50%

13%

UK

USA

Finland

Japan

Poland

Turkey

Germany

Russia

Cash equities Bonds Cash Other

73%

As % of GDP

64% 81% 82% 5% 4% 2% 16%

2

2 1

1

Domestic institutional demand has significant growth potential

Pension system development expected to drive investment Pension funds assets structure (2010) - Significant opportunity

Currently Russian pension funds savings are

concentrated in low-yield bonds that represent

84.4% of their total investment portfolio due to

regulatory limitations

Less than 0.7% of pension funds savings are

currently invested in equities

MICEX-RTS is actively involved in development

of new legislation which will stimulate

institutional investment into the equity market

Experts predict significant growth in total

volume of the available pension funds savings,

and that major investment inflow will be driven

by pension funds after liberalization of pension

savings allocation regulation

Pension funds assets (US$bn, 2010) - Significant opportunity

Source: OECD, FCSM, NLU, PFRF, Expert RA Rating Agency Note: (1) 2009 numbers for UK

(2) Source for Japan: Tower Watson

(3) NGPF and GPF structure of portfolio of pension savings

(4) Other includes: loans, land and buildings, unallocated insurance contracts,

private investment funds and other investments

3

4

8

Russia’s privatization plan likely to attract foreign investors and

increase number of IPOs/SPOs

2012 2013 2014+

60

76

91

100

100

56

66

79

Sberbank

VTB

Alrosa

Sovkomflot

Rus.Helicopters

Rostelecom

Ilyushin Finance

FSK

FNL

FNL

MM

TRSP

MNF

TLC

MNF

PWR SPO

IPO

SPO

IPO

IPO

IPO

SPO

SPO

52

100

100

100

PWR

FNL

MNF

TRSP

58

Inter RAO

Rosnano

OSK

Sheremetyevo

RusHydro PWR

IPO

IPO

IPO

SPO

SPO 50 PWR Gazprom Energo IPO

IPO

IPO

IPO

TRSP

Russian Agri Bank

70

100

100

RosAgroLeasing

Russian Railways

FNL

FNL

Russia plans to launch a privatization program in 2012-2014+

The size of the program is over $32 billion*

MICEX-RTS is focused on securing these IPO/SPO transactions and

consequently increasing overall volumes and liquidity on the exchange

Gov.

Share Company Industry Deal type

Gov.


Gov.


75 O&G Rosneft SPO SPO TRSP 51 Aeroflot

IPO Uralvagonzavod 100 MNF

IPO Zarubegneft 100 O&G

IPO OAK 83 MNF

O&G Transneft IPO 100

9

Source: Dealogic, Offerings.ru, Ministry of Economic Development of the Russian Federation, Russian Privatization Plan

* http://www.economy.gov.ru/minec/about/structure/depreal/doc20101123_01

http://www.economy.gov.ru/minec/about/structure/depreal/doc20101123_01




















10

New concept of Listing: timeline

Listing of Foreign Securities

Modernization of quotation list

(from 6 to 3 lists)

«Novy Rynok»

Free float

Capitalization

Liquidity

Market-making

IFRS

Corporate governance

Free float

Capitalization

Liquidity

Market-making

IFRS

Corporate governance

Additional Corporate governance requirements to protect shareholders’ rights

Disclosure of public reporting in English

* regulation at the level of the Decree of FSFM and MICEX-RTS Listing Rules

** regulation at the level of MICEX-RTS Listing Rules

*

*

**

Q2’12 Q3’12

Free Float will be part of listing requirements

10 * regulation at the level of the Decree of FSFM and MICEX-RTS Listing Rules

** regulation at the level of MICEX-RTS Listing Rules

11

«Novy Rynok»: Premium section*

Only companies from the quotation list I and II can be included in the Premium section

Only ordinary shares of public companies can be included in the Premium section

Inclusion in the segment implies companies’ voluntary acceptance of obligations for a particular set

of requirements (company may choose and comply with mandatory number of requirements)

MICEX-RTS establishes the set of requirements (work in progress)

Premium segment implies:

Transparency to foreign investors Additional protection of shareholders’ rights

Goal: To ensure the transparency of the company to investors

and high standards of information disclosure

Disclosure of public reporting in English

Quarterly IFRS Financial Statements

Public presentations for investors and analysts

Events Calendar for investors for the coming year

Approved Policy on Trade in shares (for major shareholders,

TOP management and Audit Committee)

Goal: To improve protection of shareholders’ rights in order to

achieve the level comfortable to international investors

Retail tranche in IPO deals

Stability of the major shareholders structure for a fixed time after IPO

Protecting the rights of shareholders in cases of transition of control

or the voluntary delisting of securities by Issuer

Providing guaranteed level of dividend payments

Optimizing the timing of the annual shareholders meetings

11 * «Novy Rynok» is not a quotation list

Stock Market 2

12

-

50

100

150

200

2009/I 2009/II 2009/III 2009/IV 2010/I 2010/II 2010/III 2010/IV 2011/I 2011/II 2011/III 2011/IV

Stocks Bonds

Cash equity & Fixed Income turnover (US$bn)1

Key facts about MICEX-RTS Securities Market

Highly liquid Russian Blue Chips

2nd and 3rd tier stocks (traded only on MICEX-RTS)

Exchange-traded Fixed Income Instruments and Government bonds (OFZ)

Trading hours: 10:00-23:50

Number of members: 6272

Number of global members3: 352

MICEX-RTS Securities Market Overview

13 (1) MICEX-RTS Data (2) As of 12.04.2012 (3) Subsidiaries of global banks

32% 32% 34% 33% 29% 27% 36%

21% 19% 16% 20% 26% 30% 20%

8% 9% 8% 8% 7% 8% 7% 7% 6% 6% 5% 7% 7% 6% 7% 6% 5% 5% 6% 5% 5% 6% 5% 5% 5% 5% 4% 5% 4% 4% 6% 5% 4% 3% 3%

17% 19% 19% 18% 17% 16% 19%

Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11

Sberbank Gazprom GMK Lukoil Rosneft VTB Sberbank-p Other

General characteristics of the market’s liquid stocks

Blue-chips share of trading

83% 81% 81% 82% 83% 84% 81% % of total

value

84.9 93.0 71.9 85.3 102.3 96.9 113.7 US $bn

Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11

Sberbank 1,73 1,8 1,39 1,61 1,89 1,49 2,27

Gazprom 1,12 1,06 0,65 0,95 1,69 1,66 1,25

GMK 0,41 0,52 0,33 0,4 0,43 0,44 0,42

Lukoil 0,38 0,34 0,24 0,26 0,44 0,37 0,41

Rosneft 0,36 0,32 0,22 0,25 0,4 0,3 0,31

VTB 0,33 0,27 0,2 0,25 0,33 0,24 0,29

Sberbank-p 0,2 0,23 0,24 0,27 0,25 0,19 0,19

Average daily trading value

Blue-chips have a huge share of trading in MICEX portfolio (> 80% of total value)

14 Source: MICEX-RTS data

0

100

200

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700

800

900

1000

40

50

60

70

80

90

100

110

120

Ми

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ны

Volume (contracts) Price (rub)

01

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10

02

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10

03

.20

10

04

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10

05

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10

06

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10

07

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02

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09

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11

0%

2%

4%

6%

8%

10%

12%Volatility

Spread (% of LTP)

mill

ion

s

Sberbank

TICKER Name FREE_FLOAT Capitalization ($) ADTV* ($) ADS** ADS (%)

SBER Sberbank 40% 50 202 204 651 782 104 587 0,00067 2,64%

*average daily trading volume **average daily spread


01

.20

10

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10

02

.20

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03

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04

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04

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05

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06

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07

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08

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08

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09

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12

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01

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01

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02

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03

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03

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04

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05

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11

05

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11

06

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11

07

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11

08

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11

08

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11

09

.20

11

10

.20

11

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%Volatility

Spread (% of LTP)

0

50

100

150

200

250

300

350

400

100

120

140

160

180

200

220

240

260

Ми

лл

ио

ны

Volume (contracts)

Price (rub)

mill

ion

s

Gazprom

TICKER Name FREE_FLOAT Capitalization ($) ADTV ($) ADS ADS (%)

GAZP GAZPROM 51% 118 428 736 368 367 035 027 0,0013 2,54%


0

50

100

150

200

250

300

350

400

450

3000

4000

5000

6000

7000

8000

9000Volume (contracts)

Price (rub)

x10

00

0

MMC Norilsk Nickel 0

1.2

01

0

02

.20

10

02

.20

10

03

.20

10

04

.20

10

04

.20

10

05

.20

10

06

.20

10

06

.20

10

07

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10

08

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10

08

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10

09

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10

10

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11

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10

12

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01

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02

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03

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03

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05

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07

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08

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09

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11

10

.20

11

0%

2%

4%

6%

8%

10%

12%Volatility

Spread (% of LTP)


GMKN MMC NorNick 48% 42 823 513 578 181 883 367 0,095 4,18%


01

.20

10

02

.20

10

02

.20

10

03

.20

10

04

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04

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10

05

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06

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10

06

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10

07

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08

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10

08

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10

09

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10

10

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10

11

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10

11

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10

12

.20

10

01

.20

11

01

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11

02

.20

11

03

.20

11

03

.20

11

04

.20

11

05

.20

11

05

.20

11

06

.20

11

07

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11

08

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11

08

.20

11

09

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11

10

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11

0%

2%

4%

6%

8%

10%

12%Volatility

Spread (% of LTP)

0

10

20

30

40

50

60

70

80

90

100

1000

1200

1400

1600

1800

2000

2200

x 1

00

00

0

Volume (contracts)

Price (rub)

Lukoil


LKOH Lukoil 76% 44 478 743 858 149 133 552 0,01847 3,38%


01

.20

10

02

.20

10

02

.20

10

03

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10

04

.20

10

04

.20

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05

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06

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06

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07

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08

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10

08

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09

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11

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10

11

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10

12

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10

01

.20

11

01

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11

02

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03

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03

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04

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05

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05

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06

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07

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08

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11

08

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11

09

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11

10

.20

11

0%

2%

4%

6%

8%

10%

12%

Volatility Spread (% of LTP)

0

100

200

300

400

500

600

700

800

900

100

120

140

160

180

200

220

240

260

280

300

x 1

00

00

0 Volume (contracts)

Price (rub)

Rosneft


ROSN Rosneft 15% 65 345 160 319 110 944 026 0,00258 3,82%



VTBR VTB 17% 22 661 127 503 83 891 095 0,00000102 4,36%

0

20

40

60

80

100

120

140

160

180

200

0,04

0,05

0,06

0,07

0,08

0,09

0,1

0,11

0,12

Ми

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иар

ды

Volume (contracts)

Price

VTB 0

1.2

01

0

02

.20

10

02

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10

03

.20

10

04

.20

10

04

.20

10

05

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06

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12

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01

.20

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02

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09

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10

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11 -1%

4%

9%

14%

19%

24%Volatility

Spread (% of LTP)

bill

ion

s

*

* - raised the minimum lot size and increased the number of decimal places 20

Source: MICEX-RTS data

-10

40

90

140

190

240

30

40

50

60

70

80

90

Ми

лл

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ны

Volume (contracts)

Price

01

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10

12

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10

01

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11

01

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02

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03

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03

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05

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05

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06

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07

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08

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09

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11

10

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11

0%

2%

4%

6%

8%

10%

12%Volatility

Spread (% of LTP)

Sberbank - p

mill

ion

s


SBERP Sberbank-p 93% 1 788 113 695 50 872 937 0,001165 5,73%


Key features: 2nd tier securities

• There is inverse relationship between average daily turnover and spread: the more liquid securities are, the narrower their spread is

• However, the correlation coefficient is only -0.078. We can see a quite liquid securities with a high spread (quartile III).

• According to our calculations, quartile III consists of 15 papers, which accounted for more than 28% of average daily turnover.

Quartile:

I. Low liquidity and high spread (third tier)

II. Low liquidity and low spread (third tier with MM program)

III. High liquidity with high spread

(area for LLT)

IV. High liquidity with low spread (Blue Chips)

I

II

III

IV


Derivatives markets (FORTS) 3

24

25

Equity Market

Futures on:

14 most liquid stocks

RTS & MICEX Indices

RTSVX (Volatility Index)

Options on:

12 most liquid stocks

RTS Index, MICEX Index

Money Market

Futures on:

Fixed Income: 2yr, 4yr and 6yr

federal loan bonds

Short-term Interest Rates

(MosPrime Rate, RUONIA)

Currencies: USD/RUB,

EUR/USD, EUR/RUB, AUD/USD,

GBP/USD

Options on:

Currencies: USD/RUB,EUR/USD

Commodity Market

Futures on:

Oil: Gas oil, Urals oil, Brent oil

Precious metals: Gold, Silver,

Platinum and Palladium

Power Price Index

Sugar, Wheat, Copper

Options on:

- Gold, Silver, Platinum, Brent oil

Derivatives

0

100

200

300

400

500

600


Derivatives turnover (US$bn)*


SECURITY MONEY COMMODITY

Futu

res

Equity:

- 14 (most liquid stocks)

Indices:

-RTS Index , MICEX Index, RTS Sectoral Indices, RTSVX (Volatility Index)

Short terms Interest Rates:

- Overnight MosPrime

- Three-month MosPrime

Currencies:

USD/RUB, EUR/USD, EUR/RUB, AUD/USD, GBP/USD

Fixed Income:

- Futures on 2yr, 4yr and 6yr federal loan bonds

Gas Oil (Physical Delivery ),

Sugar (Cash settled ), Gold,

Silver, Platinum, Palladium, Urals

Brent, Copper

Op

tio

ns

-RTS Index

-12 (most liquid stocks) USD/RUB, EUR/USD

Gold, Silver, Platinum, Brent oil, Power Price Index, Wheat

FORTS derivatives market instruments

Name Bid / Ask spread Average Trading

volume, mln USD Average OI, mln USD

RTSI 5 points /1 tick 4500-5700 2100-2550

GAZP 3-5 rub / 3-5 ticks 280-420 350-420

LKOH 10-15 rub / 10-15 ticks 50-80 65-100

SBRF 1-2 rub / 1-2 ticks 280-350 320-350

VTB 7-14 rub / 7-14 ticks 15-35 60-75

LIQUIDITY OF EQUITY FUTURES

26

Specification of futures contracts

RTS Index Futures MICEX Index Futures Gazprom ordinary shares

futures

Maturity 3 and 6 months 3 and 6 months 3 and 6 months

Contract size RTS Index * 100 MICEX Index * 100 100 equities

Contract value Index futures value * US$0.02 Index futures value * 1 RUB Equity futures' price * 1 RUB

Quotation points points rubles per 100 equities

Tick size 5 points 5 points 1 rub

Tick value 10% x FX rate 5 RUB 1 rub

Delivery Cash-settlement Cash-settlement Physical delivery

Daily settlement price

Normally last traded price Normally last traded price Normally last traded price

Expiration day

The 15th of the expiration month of the expiration year. If the 15th day is not a Business day, Business day, following the 15th day of the Contract’s expiration month of the expiration year

The 15th of the expiration month of the expiration year. If the 15th day is not a Business day, Business day, following the 15th day of the Contract’s expiration month of the expiration year

The trading day preceding the 15th of the expiration month of the expiration year. If the 15th day is not a Business day, Business day, following the 15th day of the Contract’s expiration month of the expiration year

Expiration settlement price

The average value of the RTS Index for the period from 3pm to 4pm MSK on the expiration day multiplied by 100.

The average value of the MICEX Index for the period from 3pm to 4pm MSK on the expiration day multiplied by 100.

Normally last traded price. It is used to close out positions in equity futures and open positions in underlying equities on Standard cash equity market (T+4)

27

0

1 000

2 000

3 000

4 000

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6 000

7 000

8 000

9 000

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

2006-01 2006-08 2007-03 2007-10 2008-05 2008-12 2009-07 2010-02 2010-09 2011-04 2011-11

Op

en

inte

rest

, mm

USD

Trad

ing

volu

me

, mm

USD

ADTV, equity derivatives ADTV, index derivatives

ADOI, equity derivatives ADOI, index derivatives

Equity and Equity Index Derivatives average daily trading volume

and open interest, MM USD


Local banks Global brokers Local brokers

ALFA-BANK

NOMOS-BANK

ROSEUROBANK

VTB BANK

SAINT-PETERSBURG BANK

CREDIT SUISSE

MORGAN STANLEY

DEUTSCHE BANK

MERRILL LYNCH

UNICREDIT

OTKRITIE

BROKERCREDITSERVICE

IT INVEST

ZERICH CAPITAL MANAGEMENT

ALOR

44,87 55,13

Trading volume, contracts December 2011

Non-residents

Residents

Liquidity and key participants of equity derivatives market

29

Equity and equity index futures

Contract Trading volume, mm

USD Trading volume, contracts

RTS 90 304 32 334 520

SBRF 5 411 20 617 380

GAZR 3 327 6 125 793

LKOH 899 1 732 250

MIX 572 129 136

Equity and equity index options

Contract Trading volume, mm

USD Trading volume, contracts

RTS 6 788 2 413 490

GAZR 108 195 729

SBRF 60 222 176

MIX 25 5 941

GMKR 20 11 183

KEY PARTICIPANTS


Clearing member

Broker Prop account of CM

End client

End client

Prop account

End client

Prop account

Prop account

Membership structure on FORTS

Only Russian resident

Resident or non-resident

Residents and non-residents are allowed to trade on end client level

30

31

FX Market 4

32

Foreign Exchange

EUR/RUB

USD/RUB

EUR/USD

T+0

Spot T+1

Swap T+0/T+1

Basket (USDEUR) /RUB

CNY/RUB

UAH/RUB

KZT/RUB

BYR/RUB

Spot T+1

USD/RUB

Swap T+1/T+2

-

100

200

300

400

500

600

700

800

900

1 000


Instruments

FX turnover (US$bn)

* MICEX-RTS Data Source: MICEX-RTS data

MICEX-RTS FX Market Liquidity and Key growth drivers

USD/RUB

EUR/RUB

33

1,3

2011

12

10,0

1,8

2010

10,6

9,1

1,3

2009

12,3

9,9

2,3

2008

10,6

9,6

1,1

2007

6,0

5,8

0,2

2006

3,9

3,8

0,1

2005

2,4

2,4

2004

1,4

1,4

2003

0,6 0,6

EUR/RUB

USD/RUB

The MICEX’s share on the Russian interbank market, %

Average Daily Trading Volume on the MICEX FX market, USD billion


• Extension of trading hours to

11:50pm

• Introduction of more currency

pairs (GBP, JPY, CHF, CAD, AUD)

• New fee structure with

advantages for liquidity providers

• Introduction of new instruments:

Dollar-Euro Basket (BKT),

USDRUB_TOMSPT

Key Growth drivers

2008 2007 2006 2005 2004 2003 2011

2010 2009

0

20

40

60

80

FX instruments

Value date TOD, TOM

TOD/TOM;

TOM/SPT (only for

USD/RUB)

Lot 1 000 $, EUR 100 000 $, EUR

Trading time For TOD and TOD/TOM swaps – 10:00 – 15:00;

For TOM and TOM/SPT swaps – 10:00 – 19:00

USD/RUB, EUR/RUB, EUR/USD, BKT/RUB

instruments/swaps

Value date TOD

Lot 1 000 $

Trading time 10:00 – 11:00

CNY/RUB instrument

• Currency pairs on MICEX-

RTS:

- USD/RUB,

- EUR/RUB,

- EUR/USD,

- BKT/RUB,

- UAH/RUB,

- BYR/RUB,

- KZT/RUB,

- CNY/RUB.

• 450 active participants –

Russian Licensed Banks (Non-

resident fully owned Bank

Subsidiaries are trading

members)

34

0

2

4

6

8

10

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan

.07

Jun

.07

No

v.0

7

Ap

r.0

8

Sep

.08

Feb

.09

Jul.0

9

De

c.0

9

May

.10

Okt

.10

Mar

.11

Au

g.1

1

MICEX currency market, average daily volume,billion euro (right side)

MICEX currency market share, %

0

5

10

15

20

25

0%

10%

20%

30%

40%

50%

Jan

.07

Jun

.07

No

v.0

7

Ap

r.0

8

Sep

.08

Feb

.09

Jul.0

9

De

c.0

9

May

.10

Okt

.10

Mar

.11

Au

g.1

1

MICEX currency market, average daily volume,billion $ (right side)

MICEX currency market share, %

USD/RUB and EUR/RUB trade volumes on MICEX-RTS

USD/RUB EUR/RUB


MICEX-RTS FX Market: Trading, Clearing, Settlement Entities

MICEX – RTS Exchange

National Clearing Center (NCC)

National Settlement Depository (NSD), CBR

JPMorgan Chase Bank (NY, Frankfurt branches)

Trading

Clearing

Settlement

Anonymous action, Negotiated deals

RUB

USD EUR

Central Counterparty for all trades

NSD – the central securities

depository (bank)

Off-shore settlement for

USD & EUR

36

New instrument: the Dollar-Euro Basket (BKT)

Settlement date: TOM

Lot size: 100 000

Tick (rubles): 0,0005

Exchange fee*: 0,00075%

Meeting the demand of market participants, MICEX will launch a new instrument on the FX market with the following parameters:

*It is intended to set the fee at 0.00075% during the 6-month marketing period.

Share of USD** 0.55

Share of EUR** 0.45

USDRUB_Price Last price USDRUB_TOM

EURRUB_Price ROUND((BKT_Price – USDRUB_Price*0.55)/0.45;4)

Calculation of the limit

The limit of open positions in the BKT is calculated in accordance with trades in USD/RUB and EUR/RUB

included in the BKT

* Since 08.02.2007 the Euro-Dollar basket includes 55% of US dollars and 45% of Euros. Thus, 1 BKT consists of 0,55 USD and 0,45 EUR. The ratio of the currencies in the instrument may change along with changes in the composition of the RF CB’s basket.

Description

37

New instrument: SWAP_TOMSPT

Settlement date: T+1/T+2

Lot size: 100 000

Tick (rubles): 0,0001

Exchange fee*: 0,00025%

MICEX plans to launch "long-term swaps“ The first instrument to be launched will be USDRUB_TOMSPT

* It is intended to set the size of the fee at 0.00025% during the 6-month marketing period.

38

39

Money Market 5

40

Money Market

-

200

400

600

800

1 000

1 200


REPO

REPO with Central Bank:

direct

indirect (exchange modified REPO)

Market REPO:

direct

indirect

Central Bank

Uncollateralized loans

Depositary/credit operations:

deposits

Lombard loans

Other Deposit auctions with VEB

Instruments

Money Market turnover (US$bn)*


Market data 6

41

“Real Time Market Data”

“Real Time Market Data Snapshots

(Last Sale)”

“Delayed Market Data”

“End-of-Day History”

“Data for calculating Indices

& Indicators”

“Data for using in ‘non-display’

systems”

DELAY: No delay. Latency as low as 0.5 ms

No delay. Latency as low as 0.5 ms

15 min after the end of the trading session

no limits or restrictions

No delay. Latency as low as 0.5 ms

COMPOSITION: Level 1 (new) • post-trade

(prices, volumes, values, etc)

• pre-trade (1 best bid, 1 best ask )

Level 2 • post-trade

(prices, volumes, values, etc)

• pre-trade (10 best bid, 10 best ask )

• post-trade (prices, volumes, values, etc)

• post-trade (prices, volumes, values, etc)

• archives of EOD aggregated prices, volumes, values, for a time-period, chronological archives of intraday registers of transactions

• post-trade (incl. archives of EOD aggregated) prices, volumes, values, constantly updated intraday register of transactions, chronological archives of intraday registers of transactions

• post-trade (incl. archives of EOD aggregated) prices, volumes, values, constantly updated intraday register of transactions, chronological archives of intraday registers of transactions

• pre-trade (bids/asks )

TARIFFS: License (fixed part) – 650 EUR per month + Per-terminal charges * (countable part) – per month: Level 1 – 80 EUR Level 2 – 120 EUR + Additional fixed fees for technical services*

License (fixed part) – 7500 EUR per month + Additional fixed fees for technical services*





Delivering/distribution options:

• Proprietary data-dissemination systems


• Delivering to mobile devices

• Web-sites • E-mailing • Delivering to mobile

devices • Broadcasting on

radio and TV

• Web-sites • E-mailing • Delivering to mobile

devices • Broadcasting on

radio and TV


• Web-sites • E-mailing

Proprietary data-dissemination systems

Market data distribution capabilities and options

* (if any) – per month 300 EUR (license for MICEX Bridge software), per year 845/1,210/1,690 EUR (maintenance PIX/ASA devices)q

42

IT services 7

43

Trading Services

ASTS & FORTS Platforms:

• Order-driven market

• Quote-driven market

• Discrete auctions

• REPO

• CCP clearing

• Pre-trade risk management

• DMA service

• Client connectivity:

Proprietary API

FIX trading interface

UDP multicast FIX FAST

ITCH (evaluating solutions)

• Tested throughput - 20,000

orders/second for each market

• Market data: level 1, level 2 and full

depth order book

• Online clearing

High capacity performance-matching technology for trading Russian

equities, bonds, PEPOs, FX and derivatives

44

MICEX-RTS technology and infrastructure services

• Connectivity solutions through domestic and global Network Service Providers and

international points of presence

• FIX and FIXFAST as well as proprietary APIs for execution and market data delivery

• Accessibility through Independent Software Vendors and trading networks:

Bloomberg, Reuters, Fidessa, Sungard, CQG and others

• Comprehensive exchange colocation with variable footprint sizing options

• Certification and testing environment services for new client/vendor technologies

• Dedicated client relationship team for a smooth on-boarding process

Connectivity solutions

• 300+ electronic broker systems certified to access the Exchange

• The Exchange is accessible by more than 15 telecommunication providers including

BT Radianz, SFTI and Orange, and more are coming

• Three data centers in Moscow

• Client connectivity protocols: Proprietary API, FIX trading interface, UDP multicast

FIX FAST

45

THANK YOU!

Disclaimer

• This presentation has been prepared and issued by Open Joint Stock Company "MICEX-RTS" (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.

47

Documents

Product and Service Specifics