1. The Moscow Exchange CIO Update
3rd quarter 2012

2. Content The Exchange today (Sergei Sinkevich)
Latest news
Client facing departments and main contacts
The Exchange IT initiatives planned for (Vahan Vardanian)
New IT Strategy
Trading Engines consolidation in one exchange datacenter
Point of Presence of the Moscow Exchange in London
Perspective Trading Platform for Derivatives - SPECTRA
Other initiatives

3. The Exchange today 1

4. Building blocks of future excellence
2012
T+n
May 2013
REPO with central counterparty
December 2012
Central Depositary
December 2012
2015
Listing reform
July 2013
Full IT integration
2014
Tariff reform
January 2013
Domestic investor base
2013+
Privatization
2012+

5. The Exchange IT initiatives planned for 2012 - 2015

6. Strategic IT goals Strategic goals Strategic initiatives
Ensuring reliability and continuity of operations
Flexible high-performance trading platform
Optimization and rationalization of existing solutions ( )
CC integrated T+3 mode support solution. Unified clearing system for all markets (by the end of 2013)
Increased productivity by parallel processing of the most liquid instruments ( )
Next Generation Trade engine utilizing best Global trading practice (2015)
Market access unification and promotion of the industry standard FIX/FAST interfaces (2013)
Implementation of the Data Centers in accordance with Global standards
Consolidation of al markets trading platform under one primary DC roof - M1 (Q2 2013)
Construction and commissioning of ME own DC Tier III grade facility within fully redundant data center architecture
Implementation of the new services for Participants
Low latency сo-location solution and dedicated network services (from October 2012)
Points of Presence in Global Financial Centers – starting October 2012
SaaS («cloud») services (analytic systems, monitoring services, solutions for issuers) through MICEX-RTS Cloud platform
200
Performance (peak)
x1000 transactions per second per market
Average door-to-door latency, ms
1,3
99,97
99,98
99,98
Systems availability, % 10
Connectivity to the Global Financial Networks
2011
1Q12
by 2015
*benchmarks are for ASTS platform only.
For FORTS platform:
- Performance = 2500 transactions/s
- Door to door latency = 10 ms
( Down to 3 ms after roll out of Spectra) 6

7. The Moscow Exchange Collocation Hosting Services
Colo facilities
Update plan
Industrial caliber (equivalent Tier II)
6 kW power (44U useable)
Remote hands
24x7 surveillance and monitoring
less than 1 millisecond RTD to FORTS/ASTS*
All Moscow Exchange matching engines in one building*
Equity market engine migration - 11/2012
Derivatives market engine migration - 04/2013
Up to 10 Gb connectivity
Unified attractive tariffs for co-lo
* After 19/11 will be under 100 microsecond for ASTS
* Aggregation of FORTS platform is planned for Q2 2013

8. Point of Presence in London
Specification
Update plan
Point of presence in Equinix LD4
Average expected latency ms
Two separate physical network from independent providers
Access to all markets
FIX
Market data - FAST
Launch in testing mode – October 2012
Marketing period for 3 months
Native API available throughout 2013

9. Perspective Trading Platform for Derivatives - SPECTRA
New derivative trade platform – new generation of FORTS platform.
Massive investment to architectural redesign
Production – in the beginning 2013
Fully scalable
Independent components structure
Unparalleled matching and pretrade risk control
FIX, FAST, Ultra-low messaging system Plaza II

10. Changes Forts 3.8.x Spectra Productivity
Up to transactions \ sec
transactions \ sec
Latency
Client interface – log entries \ sec for C++
Critical market data – 75 мs dissemination int.
Not-critical market data – 500 мs
Client interface – entries \ sec for C++
Critical market data – 30 мs dissemination int.
Platform
Windows
Linux (RHEL и Debian)
Java & .NET compatible
Client’s infrastructure requirements
The same
10 Mbit connectivity
2-x cores Intel Xeon 53xx or better with 24 Gb memory and SAS disc controller with write-back capability

11. (availability of test environment)
Other initiatives
Initiative
Timing
Value for clients
T+ n trading mode for stock market
4th quarter 2012
(availability of test environment)
Settlements and assets delivery in accordance with best practices
Unification of FIX and market data interfaces
2 quarter 2013
Simplified maintenance for the clients
Reduction of infrastructure costs
Clearing to be unified in National Clearing Centre
4th quarter 2012
Cut costs on infrastructure
Single cash and assets position for all ME markets
Cash REPO deals backed up with central counteragent
November 2012
Counterparty risk management
Integrated clearing for stocks and derivatives market
3rd quarter 2013
Single cash and assets position for all ME markets

12. Thank you!