1. May 11 - 12, 2006 The Derivatives Market of the MICEX Group Alexander Balabushkin Deputy Head of Derivatives, MICEX

2. Moscow Interbank Currency Exchange 2 MICEX ● MICEX was established in 1992 as a currency exchange in the form of a closed-end joint-stock company ● Shareholders: ۰ Central Bank of the Russian Federation ۰ Association of Russian Banks ۰ Sberbank RF ۰ Vneshtorgbank ۰ International Moscow Bank ۰ Rosbank ۰ Bank of Moscow ۰ 9 other leading commercial banks of Russia ● Mission: To be the core Russian financial marketplace, providing market participants with full spectrum of trading, clearing and settlement services based on high-end state-of-the art solutions

3. Moscow Interbank Currency Exchange 3 MICEX Group N.Novgorod Novosibirsk Ekaterinburg Samara S.Petersburg Rostov Vladivostok MICEX National Mercantile Exchange MICEX Stock Exchange National Depository Center National Clearing Center MICEX Settlement House

4. Moscow Interbank Currency Exchange 4 MICEX Group: Financial Supermarket ● The MICEX Group offers trading and settlement services for 5 markets: ۰ currency market (since 1992) ۰ federal bonds market (since 1993) ۰ derivatives market (since 1996) ۰ equity market (since 1997) ۰ corporate and regional bonds market (since 1999) ● Operates under the licenses of: ۰ Central Bank of the Russian Federation (currency market) ۰ Federal Service for the Financial Markets (securities market) ۰ Ministry for the Antimonopoly Policy (derivatives market)

5. Moscow Interbank Currency Exchange 5 MICEX Group: National Financial Infrastructure St.-Petersburg Moscow N. Novgorod Novosibirsk Rostov-on-Don Yekaterinburg Vladivostok Samara 1500 banks and companies 10 000 clients 11 telecom providers 318 brokerage systems 500 000 orders a day 250 000 trades a day

6. Moscow Interbank Currency Exchange 6 MICEX Group: Advanced Information Technologies ● Screen-based trading with remote access ● Possibility of numerous trade vehicles ● Integrated services: trading, clearing and settlement facilities in the ‘one-stop shopping’ environment ● Good scalability, flexibility and universality of the system ● According to the Gartner Group, the reliability of the Micex system is 99,99%

7. Moscow Interbank Currency Exchange 7 MICEX Group: Daily Average Volumes USD mln Period Market 20042005Jan-Mar 2006 Foreign exchange140023973216 Equities4345741407 Corporate bonds165339561 Federal bonds187409516 Derivatives226100 Total218837455800

8. Moscow Interbank Currency Exchange 8 MICEX Group: Market Shares Leading Russian exchanges’ market shares in 2005 Period Market MICEXRTS SPCEX and other Foreign exchange94%2%4% Equities*79%21%- Corporate bonds97%-3% Federal bonds100%-- Derivatives21%76%3% (*) Gazprom stocks had been in limited circulation till the end of 2005 and were traded on the Stock Exchange “Saint-Petersburg” (RTS SE Group) only. Gazprom stocks market share amounted to 15%. MICEX spot markets – basis for derivatives On-line funds transfers between MICEX markets

9. Moscow Interbank Currency Exchange 9 UnderlyingUSD / RUBEuro / RUBEuro / USD Trading unitUSD 1000Euro 1000 Contract monthsNext 6 months + 2 months in quarterly March cycle Next 6 monthsNext 6 months + 2 months in quarterly March cycle Final settlement day15-th of contract month DeliveryCash settled Final settlement priceMicex USD / RUB exchange rate Central Bank of Russia Euro / RUB exchange rate ECB Euro / USD exchange rate Tick0,0001 Tick valueRUB 0,1 RUB 3 FeeRUB 0,3 per contract RUB 0,5 per contract Initial margin (=Deposit margin) RUB 600 - 1000 (depending on contract month) RUB 1600 – 3500 (depending on contract month) RUB 1000 - 3500 (depending on contract month) MICEX Derivatives Market: Products

10. Moscow Interbank Currency Exchange 10 MICEX Derivatives Market Marketplace – MICEX Clearing – MICEX Settlement bank – MICEX Settlement House MICEX authorized capital: RUB 800 mln Derivatives Market Reserve Fund: RUB 200 mln MICEX SH authorized capital: RUB 255 mln MICEX SH is a specialized institution for providing settlement services – “non-banking credit organization” The License and regulations of the Bank of Russia do not allow active operations with clients' funds deposited with MICEX SH (lending) This guarantees safety of clients' funds Market Structure

11. Moscow Interbank Currency Exchange 11 Membership Structure MICEX Derivatives Section General Clearing Member Individual Clearing Member Associated Clearing Member Clients General Trading Member Individual Trading Member Clients GCMICMGTMITMACM Right to trade all types of contracts USD, EUR Right to trade on its own account Right to trade for and on behalf of its Clients Right to settle its own and clients’ trades directly with MICEX Right to settle Trading Members’ trades with MICEX Non banksBanks

12. Moscow Interbank Currency Exchange 12 March 2006 1International Moscow Bank 2Gazprombank 3Metallinvestbank 4MDM Bank Membership Dynamics & Market Participants Rating 2005 1Metallinvestbank 2Vneshtorgbank 3Eurofinance Mosnarbank 4Sberbank DateTotalGCMICMACMGTMITMActive 01.01.0515624574561539 01.04.0516125587561542 01.09.0516125589541551 01.01.06164266010531562 01.04.06168266211531662

13. Moscow Interbank Currency Exchange 13 Market Dynamics ● September 2004 — largest Russian banks set up a pool of liquidity providers ● Trading volume in 2005 – 6.5 mln contracts or USD 6.5 bln in notional value ● Trading volume in Q1 2006 — 5.7 mln contracts (11 times Q1’05 volume) ● End-of-March open interest — 1.9 mln contracts or USD 1.9 bln ● Record daily volume — USD 640 mln ● Average transaction volume in 2005 — USD 7 mln (Q1 2006 – USD 10.5 mln)

14. Moscow Interbank Currency Exchange 14 14 times USD 140 mln USD 2 bln Open Interest

15. Moscow Interbank Currency Exchange 15 * Based on official data from Internet sites of the exchanges USD/RUB Futures Market

16. Moscow Interbank Currency Exchange 16 * Based on official data from Internet sites of the exchanges Futures and Options on Russian Exchanges FX only All products

17. Moscow Interbank Currency Exchange 17 Plans for 2006: STIRs Short-term interest rate futures – new instruments for the Russian market (1)  Underlying - 3-month MosPrime Rate  Calculated by the National Foreign Exchange Association  Methodology is approved by EBRD which uses MosPrime Rate for quarterly setting coupon for its floater  Contributor Panel consists of 8 leading participants of the Russian money market: ABN Amro, Citibank, Gazprombank, IMB, Raiffeisenbank, Sberbank, Vneshtorgbank, WestLB Vostok  Expected launch time – June 2006 (2)  Underlying – compounded MosIBOR Overnight Rate  Analogs – BM&F One-Day Interbank Deposut Futures, EONIA Futures  O/n deposits account for 70% of Russian money market  Contributor Panel consists of 16 leading participants of the Russian money market  Expected launch time – July 2006

18. Moscow Interbank Currency Exchange 18 MICEX SE: Leader Among Exchanges of the CIS and CEE ● The capitalization of the Russian equity market is 84% of Russia’s GDP or 647.4 bln USD (as of April 1, 2006) ● The trading volume in the Russian stock market is over 60% of the stock market of the countries of the CIS, Central and Eastern Europe The turnover on the equity market in January-February 2006 and the number of issuers bln USD The number of issuers NYSE2641.51817* NASDAQ2040.72816 London SE1201.22762 Tokyo SE1140.42337 Euronext563.0961 Deutsche Borse420.5645 Hong Kong Ex&Cl125.81130 Shanghai SE56.6833 MICEX SE49.6186 Singapore Ex26.6458 Wiener Borse12.491 Warsaw SE8.68.6234 *) January 2006

19. Moscow Interbank Currency Exchange 19 MICEX Index: Dynamics Country Growth of national stock index in Jan-Mar 2006 Russia (MICEX Index) +28.5% China (SSEC)+11.8% Germany (DAX)+10.4% United Kingdom (FT-SE) +6.2% Japan (Nikkei)+5.9% USA (DJIA)+3.7% On April 26 MICEX Index exceeded the level of 1500 Growth from the beginning of 2006 – 41%

20. Moscow Interbank Currency Exchange 20 Plans for 2006: Futures on MICEX Index ISSUERSTOCK TYPE "Aeroflot"Common stock "AvtoVAZ"Common stock "RAO UES"Common stock "RAO UES"Preference stock "Gazprom"Common stock "Norilsk Nickel"Common stock "LUKoil"Common stock "Mosenergo"Common stock "MTS"Common stock "RBC IS"Common stock "Rostelecom"Common stock "Sberbank"Common stock "Sberbank"Preference stock "Sibneft"Common stock "Surgutneftegaz"Common stock "Surgutneftegaz"Preference stock "Tatneft"Common stock "Transneft"Preference stock "Uralsvyazinform"Common stock Potentially the most attractive product for domestic investors Expected time – October 2006

21. Moscow Interbank Currency Exchange 21 Plans for 2006: Options  Underlying: futures contracts on USD/RUB, later other futures  Settlement method: futures-style, new for the Russian market  Expected time: October-November 2006 Plans for 2007  Single stock futures and options  Futures on federal bonds  Futures on corporate bonds Common variant of “cheapest–to-deliver” or cash settled futures on the basis of ZCYC  National Mercantile Exchange – wheat, white sugar, oil, gold,… (commodity futures) ZCYC: recalculated on-line methodology was developed by the Central Bank and MICEX

22. Moscow Interbank Currency Exchange 22 Plans for 2006: Financial Safeguard System MICEX Reserve Fund for derivatives market The Board of Directors decided to recommend to the Shareholders Meeting to allocate to the Reserve Fund additionally RUB 300 mln As a result the MICEX Reserve Fund for derivatives market will be increased up to RUB 500 mln The Clearing Fund will be set up by clearing members The Reserve Fund and the Clearing Fund will be used proportionately in cases when the initial margin of a defaulting clearing member is not sufficient to close out its positions SPAN MICEX and CME have signed SPAN License Agreement SPAN implementation is under way Expected time - October-November 2006 Step-by-step raising of requirements for clearing members The goal is to strengthen the guarantee system by restricting clearing membership to first-rate banks only

23. Moscow Interbank Currency Exchange 23 SPAN Implementation Design Built in the trading system On-line margining Capital adequacy checks order price

24. Moscow Interbank Currency Exchange 24 Contacts ● Address: ۰ 13, B. Kislovskiy per., Moscow, 125009, Russia ● Telephone: ۰ +7 495 7059610 ۰ +7 495 7059612 ۰ +7 495 7059627 ● Fax: ۰ +7 495 2027504 ● E-mail: ۰ derivatives@micex.com ● Web-server: ۰ www.micex.com