Russian Trading System Stock Exchange

1. Russian Trading System Stock Exchange Opportunities of Derivatives market for foreign investors

2. Russian Derivatives market • Derivatives market – the fastest growing, the most profitable • segment of the Russian financial market. • 2007 – until now this year has been • the most profitable year in the history • of derivatives market: • Rapid growth of trading volume • Steep growth of number of trading participants • Legislation improvements • Infrastructure changes • The facts above create a solid base for the future market development

3. Positive factors that promote development of derivatives market FORTS (Futures and Options on RTS) Legal defence of futures contracts (the law was adopted by the governmental authorities and signed by RF President on January 26, 2007) Cancellation of limitations for capital transactions with currency Macroeconomic policy helps further economics and financial market development The process of overflow of the main share of the derivatives on Russian assets to Russia

4. Russian derivatives market FORTS (Futures and Options on RTS) FORTS (Futures and Options on RTS) is a derivatives division of the Russian Trading System Stock Exchange FORTS has 13 years experience in futures and options trading FORTS is a leader of the Russian market in: Monthly Trading volume – 27 bln US dollars Number of traded contracts - 53 Number of active market participants - 90 Number of accounts - 20000 Last Records: Daily open interest exceeded $9,5billion. Daily trading volume grew to $1,8billion. FORTS – is a reliable and technologically advanced market

5. Russian derivatives market Market Dynamics FORTS is in the international exchanges top-20 by trading volume the world leader in the single stock derivatives segment the fastest growing segment of the Russian financial market

6. Why Russian Derivatives market? Volume examples Monthly trading volume of futures and options contracts on IOB IndexonLSE 45 mln USD Monthly trading volume on futures and contracts on RTS Index 15 bln USD Monthly trading volume on futures contracts on Rebcooil onNYMEX 0 Monthly trading volume on futures contracts onUrals on RTS 32 mln USD Conclusion: financial instruments on Russian assets have better liquidity in Russia

7. FORTS (Futures and Options on RTS) Wide range of instruments • FORTSoffers a wide range of derivative instruments: • Equity derivatives: • Futures on 15 most liquid shares • Options on 15 most liquid shares • Index derivatives: • Futures on RTS Index and RTS Sectoral Indices • Options on RTS Index • Bond futures: • -Futures on 12 most liquid bonds • Short terms Interest Rate futures • -MosIBOR Futures • -MosPrime Futures • Currency derivatives: • -Futures on UDS • -Option on USD • Commodity derivatives: • -Physical Delivery Gas oil futures • -Futures on Gold and on Silver • -Futures on Oil (Urals) • -Options on Gold

8. FORTS advantages FORTS (Futures and Options on RTS) Highly liquid market Aggregation of demand of local and global market participants A large number of market participants (more than 14 thousand of clients’ accounts) A wide range of instruments An opportunity of arbitrage with western financial markets

9. FORTS – maximum opportunities for international investors • Hedging of positions in Russian assets (both portfolios and separate securities) • Hedging of positions in rubles and USD • An opportunity to make money on volatile and bear market • Making arbitrage deals • An opportunity to trade with Russian counterparties • Offering clients trading on the Russian market (DMA, Structured Products)

10. Russian derivatives market RTS Index Derivatives • Futures on the RTS Index was launched in August 2005 • Option on RTS Index future was launched in September 2005 • Within 6 months RTS Index has become the most popular Russian derivative • Open interest is over 2,4 bln dollars • RTS Index is the benchmark of the Russian stock market • Calculated since 1995 • Capitalization-weighted, with free-float coefficients • Consist of50 preferred and common shares • Calculated real-time Current market capitalization of companies included the RTS Index as of Sept 25 is $935 bln. RTS Index is included in the Standard&Poor’s Index Global Portfolio

11. Russian derivatives market Money market derivatives Effective instrument for hedging of risks in domestic Russian assets Futures contract on exchange RUR\US dollar rate Option on futures contract on exchange RUR\US dollar rate Futures contract on short-term interest rate

12. Russian market instruments Commodity Derivatives -February 20th, 2007 Started of physical delivery futures contracts on Gas oil -Sugar futures launched 19 September, 2007 -Weather derivatives will belaunched in November, 2007 -Futures contracts on oil Cash-settled futures contracts on export oil Urals. Settlement based on pricing information supplied by Platts (Urals-ex-Baltic Sea CIF R'dam) -Futures and options on gold -Futures contracts on silver

13. FORTS General Clearing Members • Main Russian banks (Sberbank, Gazprombank, VTB, Alfa-bank, NRB, etc.) • Global investment banks (CSFB, Deutsche Bank, Raiffeisenbank Austria , UBS) • Leading Russian investment banks(Troika Dialog, Renaissance Capital, CIT-Finance, Aton etc.) • Leading Russian investment companies

14. FORTS Participants Leading investment companies Investment banks including global investment banks Commercial banks Institutional investors Non-residents Private investors Industry participants In total more than 20 000 participants who are served byup to 180 professional market participants

15. Settlement guarantees A separate specialized clearing company – RTS Clearing House: • acts as a central counterparty to the futures and options transactions • runs the settlement of all the contracts Three-level guarantee system: • Initial margin (guarantee payment) • Reserve Fund • Contingency Fund

16. Contact details: RTS Derivatives Department Tel/Fax: 007 495 705 90 31 E-mail: forts@rts.ru Web: www.rts.ru or www.forts.ru