Do not put content in the brand signature area ING main colour palette ING secondary colour palette Map colours FillLine ING Financial Markets November 2010 Moscow RuONIA Overnight Index Swap Market in Russia

Do not put content in the Brand Signature area Do not put content in the Title Area above this guide 1 ING main colour palette ING secondary colour palette Map colours FillLine November 2010 Legal, calculation and discount curve Settlement, liquidity and market-making History, current state and future prospects Comparison with MosPrime I.RuONIA background II.RuONIA OIS: issues and solutions CONTENTS Comparison of EONIA, SONIA and RUONIA III.Appendix: OIS market comparison

Do not put content in the Brand Signature area Do not put content in the Title Area above this guide 2 ING main colour palette ING secondary colour palette Map colours FillLine November 2010 RUONIA BACKGROUND What is RuONIA: Rouble-denominated Trade-weighed overnight rate index Based on actual money market deposits Participants are (currently) 31 banks of highest credit quality that cover more than 50% of the interbank market Organizational bodies are the Central Bank of Russia (CBR) and the National Foreign Exchange Association (NFEA) RuONIA and OIS history: Much preparatory work over last 2 years Calculation methodology agreed July 2010 CBR started publishing RuONIA from 8 th Sep First offshore 1 week RuONIA OIS trade DB London – EBRD First locally booked 1 week trade (ING – EBRD) 13 th Oct First locally booked 1 month trade (ING – EBRD) via ICAP 11 th Nov First locally booked 3 month trade (ING – EBRD) via ICAP 15 th Nov Future development: Interest from participants; regular meetings: NFEA, ICAP etc. Daily RuONIA OIS fix, similar to the NFEA daily FX swap fix RuONIA OIS central clearing through MICEX OIS curve has the potential to become very important: the curve of choice for the regulator and participants Average daily volume calculated Deals that are too large excluded Remaining deals bucketed Non-representative buckets excluded If too low, criteria eased and last 2 steps repeated Volume-weighted formula applied Remaining volume calculated Calculation method: European EONIA OIS market Source: ECB

Do not put content in the Brand Signature area Do not put content in the Title Area above this guide 3 ING main colour palette ING secondary colour palette Map colours FillLine November 2010 RUONIA MOSPRIME COMPARISON RuONIA is not a replacement of MosPrime It is an additional benchmark with its own properties MosPrime: offer rate at which banks are ready to lend RuONIA: rate of ACTUAL trades done Benefit of full protection from manipulation However, timing disadvantage (published 5 pm next day) Basis is 27bp on average and has a tendency for tightening MosPrime against RuONIA MosPrime – RuONIA basis

Do not put content in the Brand Signature area Do not put content in the Title Area above this guide 4 ING main colour palette ING secondary colour palette Map colours FillLine November 2010 OIS ISSUES AND SOLUTIONS ISSUES Standardized documentation - Long Form Confirmation based on ISDA/RISDA – to sign - Term Sheet – to exchange To request RuONIA contributors to put in place at least 10 agreements with each other Online trade matching service SOLUTION Legal uncertainty - Few RISDA agreements has been signed so far - RISDA lacks some sections needed for OIS trading - Uncertain implementation, esp. netting and default clause LEGAL ISSUE Specialized online service - Calculating cashflows for individual trades / whole portfolios - Possible providers: CBR, MICEX, Bloomberg, Reuters - Developed markets services: DTCC, triOptima SOLUTION Difficulty in agreeing cashflows with precision Firm agreement as to which curve to use - To start with MosPrime - To introduce OIS points on the curve gradually To offer quotes for OIS up to 3 months Regular meetings to evaluate quality of data used SOLUTION Need for discount curve for derivatives trades CALCULATION ISSUE DISCOUNT CURVE ISSUE

Do not put content in the Brand Signature area Do not put content in the Title Area above this guide 5 ING main colour palette ING secondary colour palette Map colours FillLine November 2010 OIS ISSUES AND SOLUTIONS (2) To issue accounting recommendations - To confirm that P&L is calculated as discounted MTM Third party clearing (MICEX or expert bank like ING) SOLUTION Shortage of knowledgeable support staff Accounting/settlement systems not ready Inconsistent accounting among banks SETTLEMENT ISSUE To nominate 5 or 10 of 31 RuONIA contributing banks to offer firm OIS quotes Introduction of experienced OIS brokers services SOLUTIONLIQUIDITY AND MARKET-MAKING ISSUE Lack of liquidity so far

Do not put content in the Brand Signature area Do not put content in the Title Area above this guide 6 ING main colour palette ING secondary colour palette Map colours FillLine November 2010 APPENDIX OIS MARKETS COMPARISON SOLUTION EONIASONIARUONIA Underlying Indexes CurrencyEURGBPRUB Stands for:Euro Overnight Index AverageSterling Overnight Index AverageRuble Overnight Index Average Index History4th January th March th January 2010 Index CalculationWeighted average rate of all unsecured, overnight cash transactions undertaken in the interbank market, initiated within the euro area by the banks contributing to the Euriobor survey. Weighted average rate of all unsecured, overnight cash transactions brokered in London by WMBA member firms between midnight and 16:15 (London Time) with all counterparties in a minimum deal size of £ 25m. Weighted average rate of unsecured, overnight interest rates based on money market loans and deposits between (currently) 31 banks. Organisational bodyEuropean Banking Federation (EBF) and the Financial Markets Association (ACI) Wholesale Market Brokers' Association (WMBA) Central Bank of Russia (CBR) and the National Foreign Exchange Association (NFEA) ContributorsThe Euribor Reporting Panel - currently numbering 49 banks. Made up of the banks transacting the highest volumes of business in Eurozone money markets. The five major interdealer brokers (ICAP, Tullet Prebon, Sterling International Brokers, Martin Brokers & Tradition) report volumes of trade running through defined price bands - typically 0.01% wide. All 31 banks licensed by the CBR Calculated byEuropean Central Bank (ECB)Currently Thomson Reuters - responsibility is due to be taken back by the WMBA within the next 6 months Central Bank of Russia (CBR) Daily fixing published at:19:00 CET17:00 London Time Next day (5 pm Moscow time)

Do not put content in the Brand Signature area Do not put content in the Title Area above this guide 7 ING main colour palette ING secondary colour palette Map colours FillLine November 2010 APPENDIX OIS MARKETS COMPARISON (2) SOLUTION EONIASONIARUONIA OIS Markets Outright swaps1-week to 2-years active trading, trade seen out to 10-years. 1 week to 6 months Fwd swaps1, 3, 6 &12-month gap spreads and IMM dated fwd markets active out to 2-years 1, 3, 6 &12-month gap spreads and IMM dated fwd markets active out to 3-years 1,2,3 months gap spreads must be executable ECB reserve period dated contracts liquid out to 9 months MPC reserve period dated contracts liquid out to 18 months Euribor/Libor-Overnight Index swap spreads Outright spreads active out to 10-years with trade seen out to 30-years None at the moment IMM FRA/EONIA spreads active in white and red months, green prices also seen IMM FRA/SONIA spreads active in white and red months, green prices also seen Typical clip sizes € 1bn out to 1-month £ 1bn out to 1-month 2 bln RUB out to 1m € 1bn out to 3-months £ 500m out to 3-months 1 bln RUB out to 2m € 500m out to 1-year £ 250 out to 1-year 500 mio RUB out to 3m € m in term £ 100m in term 500 mio RUB out to 6m SettlementT+2T T+1 Date conventionACT/360ACT/365 Daily OIS fixingsNo ClearingMainly through LCH.Clearnet No central clearing Standard documentationISDA ISDA, RISDA Futures Markets NYSE Euronext: IMM dated, 3-month EONIA Swap Index contracts active in white and red months. Developing mainly as a spread to Euribor Futures. Index calculated from contributing banks as part of the Euribor survey NYSE Euronext - has been under consideration, but no immediate plans to launch None at the moment

Do not put content in the Brand Signature area Do not put content in the Title Area above this guide 8 ING main colour palette ING secondary colour palette Map colours FillLine November 2010 Q&A

Do not put content in the Brand Signature area Do not put content in the Title Area above this guide 9 ING main colour palette ING secondary colour palette Map colours FillLine November 2010 THANK YOU!