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Transferring Stock Market Clearing Functions to NCC

Transferring Stock Market Clearing Functions to NCC. with introduction of Central Counterparty at T+0. CJSC JSCB National Clearing Centre.

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Transferring Stock Market Clearing Functions to NCC

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  1. Transferring Stock Market ClearingFunctions to NCC with introduction of Central Counterparty at T+0

  2. CJSC JSCB National Clearing Centre CJSC JSCB National Clearing Centre was established in October 2005, and since December 2007 it has been performing CCP functions in the MICEX currency exchange market It specializes in rendering clearing services to financial market participants Shareholders‘ equity structure: CJSC Moscow Interbank Currency Exchange – 100% Authorized capital: Authorized capital - 4,435 mln. roubles (as of June 01, 2011 ~ 109 mln. euro) Equity - 8,727 mln. roubles (as of June 01, 2011 ~ 215 mln. euro) Average daily trading volume in the foreign exchange market in 2010 ~ 10 bn. US dollars Licenses : for banking operations; professional securities market participant’s license for clearing activities www.nkcbank.ru

  3. From November 2011, NCC will become a clearing organization and central counterparty in the MICEX stock market At the first stage, centralized clearing is introduced at the T+0 and 100% margin deposit terms The change of the clearing organization will not fundamentally alter the nature of the participant’s risks due to preservation of the NSD settlement system on the DVP terms The stock market clearing functions will be transferred from CJSC MICEX to CJSC JSCB NCC on November 01, 2011 Current scheme Target scheme Transactions registration MICEX stock market MICEX stock market Clearing MICEX (without central counterparty) NCC (central counterparty) 01.11.2011 Settlements NSD NSD in roubles in securities

  4. Transactions with NCC are concluded on the following terms: Market participants – all trading participants Listed securities – all securities permitted for circulation in the Principal Trading Mode Settlement terms - T+0 with 100% margin deposit The terms of order acceptance for execution and trade execution will not change Feeswill not change as compared to the T+0 market without CCP Commission will be charged on the trade execution date Methods of calculation of VWAP and current prices, and the trading suspension procedure will not change The transactions of the clearing participants who did not concludecontracts for clearing services with NCC, entered into prior to the transfer of clearing functions and scheduled for execution after the transfer of clearing functions will mature from T-1 after the clearing transfer date

  5. NCC transaction settlements Transactions without Central Counterparty Allocations – P0 Repurchase – T0 Transactions with Central Counterparty Upon conclusion Principal mode and RPS (ex-Т0) – F0 RPS (ex-Z0) – A0 Only upon execution RPS – B0…B30 REPO – S0…S2(1st and 2nd sections) REPO – Z0, Rb (2nd section) Standard clearing Codes have not changed

  6. The transfer of the stock exchange clearing functions to NCC has significant advantages The preconditions for implementation of new products and services are created: REPO with CCP Partially secured trading Diversification of assets included in collateral Combination of clearing functions in the stock exchange, currency exchange and forward markets within a single organization Reduction of clearing participants’ costs and increasing efficiency of exchange operations * - NCC Supervisory Board has been significantly expanded (to 15 people), comprising treasury representatives and risk management divisions of the leading Russian banks

  7. The project for transfer of stock market clearing functions to NCC is implemented in the following sequence:

  8. In order to continue using clearing services in the MICEX stock market on and after November 01, 2011, an organization has to do the following:  • - to become the participant of the NCC EDT Subsystem • to become the NCC clearing participant • to conclude an addendum to the Integrated Technological Service Agreement • www.nkcbank.ru • MICEX’s single Call Center: +7 (495) 363-32-32 • www.nkcbank.ru •  Starting November 01, 2011, CJSC MICEX will cease clearing of MICEX stock market transactions.

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