1. Managing counterparty risk 7 th Annual International Conference, “Russian Derivatives Market” Moscow, 11 September 2012

2. Managing counterparty risk Key features Participants Admission criteria End-to-end STP & reporting Continuous Collateral optimisation & re-use Automatic allocation & substitutions Local securities Comprehensive Collateral reporting Integration with core settlement & custody Managing C/P Risk Local currency 2

3. Russian Derivative Market State of development Participants Admission criteria Local securities Managing C/P Risk      Local currency  End-to-end STP & reporting Automatic allocation & substitutions Comprehensive Collateral reporting Integration with core settlement & custody Continuous Collateral optimisation & re-use 3

4. 4 Post-trade made easy in Russia Key features – DRAFT – Pending Local authorisation Full service offer: Direct link in CSD (market proximity) Effective trading account structure for Euroclear Bank clients ► allowing OTC and stock exchange activity Range of services including: ► Internal settlement, Lending & Borrowing, Triparty from omnibus account DVP in RUB on the local market Enhanced interoperability All Fixed Income instruments? Eligible for trading on Moscow Exchange Eligible for holding in the local CSD

5. Tax and asset servicing Standardised, international processes Risk-controlled environment Easy access to sell-side Buy - Side (Global Custodian) Sell - Side (Investment Bank) Servicing the Russian market Liquid and robust settlement Standardised, international processes Risk-controlled environment Dynamic lending and collateral management Inbound and outbound link Efficient operability with seamless access to Stock exchange DVP in RUB against local counterparties Same day funding (cash and securities) Russian CSD Robust asset protection Asset servicing Financing capabilities Lending and borrowing Post-trade made easy in Russia

6. OTC derivatives Participant admission criteria Clearing Member CCP Client (Buy-Side) Custodian Triparty Collateral Manager Collateral transformation SWAP of non-eligible collateral against CCP eligible collateral It is more complex then it looks Triparty Collateral Manager Buy-side to post initial margins 6