April 1, 2007
MICEX Group
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX Group: history
● 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
Federation۰ Association of Russian Banks۰ Sberbank RF۰ Vneshtorgbank۰ Rosbank۰ International Moscow Bank۰ Bank of Moscow۰ 9 other leading commercial banks
of Russia
● In 2004 on the base of the MICEX stock market the MICEX Stock Exchange was formed
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX Group: financial supermarket
● The MICEX Group offers trade and settlement services on the 5 markets:۰ currency market (since 1992)۰ federal bonds market (since
1993)۰ market of derivative financial
instruments (since 1996)۰ equities market (since 1997)۰ market of corporate and
regional bonds (since 1999)
● Operates under the licenses of: ۰ Central Bank of Russian
Federation (currency market)۰ Federal Service for the Financial
Markets (securities market)۰ Ministry of the Antimonopoly
Policy (derivative market)
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX Settlement House
MICEX
National Depositary Center
E-Stock
•Cash Settlements
•Depositing and settlements in the securities
•The technological support of the MICEX projects •Trades in the currency, derivatives, federal
bonds markets•Clearing in the exchange markets
Regional currency and stock exchanges
MICEX Stock Exchange
National Mercantile Exchange
•Listing. Trades
•Trades in the commodities
•The State commodity interventions in the grain market
National Clearing Center
St.-Petersburg
Yekaterinburg
Samara N. Novgorod
Novosibirsk
Rostov-on-Don
Vladivostok
MICEX Group: structure
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Moscow Interbank Currency ExchangeMoscow Interbank Currency ExchangeMICEX Group: the national financial infrastructure
St.-Petersburg
Moscow
N. Novgorod
Novosibirsk
Rostov-on-Don Yekaterinburg Vladivostok
Samara
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Moscow Interbank Currency ExchangeMoscow Interbank Currency ExchangeMICEX Group: structure of the volume of transactions
Structure of the daily average volume of transactions on the MICEX and MICEX SE,
mln USD
2005 2006Jan—Mar
2007
Currency market
2396.8 3870.2 4468.9
Federal bonds market
408.9 662.7 957.9
Equities market 574.0 2227.4 3846.8
Market of corporate and regional bonds
339.1 827.9 1368.8
Derivatives market
26.5 133.8 246.0
Total 3745.5 7792.710890.
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The turnover of thе MICEX markets
0
250
500
750
1000
1250
1500
1750
2000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
bln USD
Currency market Federal bonds market
Stock market Derivatives market
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX: the currency market
● Trading is held in five currencies: the US dollar, the Euro, the Ukrainian hrivna, the Kazakhstan tenge, the Byelorussian ruble
● Settlements on the currency market are effected today and tomorrow
● As a result of trading on the MICEX. the Russian Central Bank fixes the official exchange rate of the US dollar
● The volume of transactions in 2006 has reached 955.9 bln USD, which is 1.6 times more than in 2005
● The volume of transactions in January—March 2007 has reached 254.7 bln USD, which is 1.4 times more than in January—March 2006
Volume of transactions and the
exchange rate of the dollar
0
50
100
150
200
250
300
1Q2003
2Q 3Q 4Q 1Q2004
2Q 3Q 4Q 1Q2005
2Q 3Q 4Q 1Q2006
2Q 3Q 4Q 1Q2007
bln USD
20
22
24
26
28
30
32
USD/RUR
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX: the federal bonds market
● The MICEX organizes the primary placement and the secondary circulation of federal bonds, Bank Of Russia bonds (OBRs)
● The volume of transactions in 2006 has reached 163.7 bln USD, which is 1.6 times more than in 2005
● The RGBI Index has decreased in 2006 by 0.6% to 117.25 points
● The volume of transactions in January—March 2007 has reached 54.6 bln USD, which is 1.9 times more than in January—March 2006
● The RGBI Index has decreased in January—March 2007 by 0.3% to 116.86 points
The volume of transactionsand the RGBI Index
95
100
105
110
115
120
1Q2003
2Q 3Q 4Q 1Q2004
2Q 3Q 4Q 1Q2005
2Q 3Q 4Q 1Q2006
2Q 3Q 4Q 1Q2007
points
0
20
40
60
80
100bln USD
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX SE: the stock market
● The MICEX Stock Exchange — the leading stock exchange in Russia
● In 2006 the MICEX’s share in the Russian stock market turnover has reached 90%
● The volume of transactions in 2006 has reached 754.9 bln USD, which is 3.3 times more than in 2005
● The volume of transactions in January—March 2007 has reached 626.2 bln USD, which is 1.9 times more than in January—March 2006
The turnover of the Russian exchanges
in 2004—2007, bln USD
2004*
2005 2006Jan—Mar 2007
MICEX SE 151.2 225.6 754.9 626.2
RTS 26.1 38 61.2 4.2
*) MICEX
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX SE: the stock market
Issuers on the MICEX SE stock market
January 1, 2005
January 1, 2006
January 1, 2007
March 30, 2007
Total number of issuers
241 385 530 613
Issuers of equities
81 161 193 190
Issuers of bonds
179 245 364 398
Number of issuers on the MICEX SE(at begining of the month)
81
161
193
190
179
245
364
398
0 100 200 300 400 500
J anuary2005
J anuary2006
J anuary2007
April 2007
Equities Bonds
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX SE: the equities market
● 288 equities of 190 issuers are traded on MICEX SE
● 66 equities of 52 issuers listed on MICEX SE, including such companies as Gazprom, RAO UES, LUKoil, Rostelecom and Sberbank
● The volume of transactions with equities in 2006 has reached 550.2 bln USD, which is 3.9 times more than in 2005
● The volume of transactions with equities in January—March 2007 has reached 219.3 bln USD, which is 2.7 times more than in January—March 2006
● The MICEX Index has reached 1698.08 points by the March 30, 2007(from the beginning of 2007 the increase is 0.3%)
Volume of transactions andthe MICEX Index
0
25
50
75
100
125
150
175
200
225
1Q2003
2Q 3Q 4Q 1Q2004
2Q 3Q 4Q 1Q2005
2Q 3Q 4Q 1Q2006
2Q 3Q 4Q 1Q2007
bln USD
0
250
500
750
1000
1250
1500
1750
2000
2250points
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX SE: the equities market capitalization
● Equities market capitalization has grown 6.5 times during 2003—2006
● Equities market capitalization in January—March 2007 has increased by 2.6% to 908.1 bln USD
● The most capitalized companies are:۰ Gazprom — 249.5 bln USD۰ Rosneft — 77.6 bln USD۰ Lukoil — 73.8 bln USD
● Turnover velocity of the equities market in January—March 2007 was 65.1%, which is 18.1 percentage points more than in January—March 2006
0
200
400
600
800
1000
1H 2002
2H 1H 2003
2H 1H 2004
2H 1H 2005
2H 1H 2006
2H
bln USD
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX SE: the Internet-based trading
● The development of the Internet-based trading has allowed:
۰ to cover the all-Russia territory
۰ to connect about 100 thousands minor private investors
● The number of trades’ participants. using Internet in brokerage systems has grown to 365 since 2000
● Above 60% of daily turnover at the MICEX stock market is made with the use of Internet technologies
The share of Internet-based transactions in the turnover of trades in the MICEX/MICEX SE stock market
0%
20%
40%
60%
80%
2000 2001 2002 2003 2004 2005 2006 J an-Mar2007
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX: the derivatives market
● September 2004 — largest Russian banks set up a pool of liquidity providers
● Total trading volume in April 2006 — March 2007 — 41.4 bln USD
● End-of-January open interest — 2.71 bln USD
● Record daily volume — 910.8 mln USD
The volume of transactions and open positions
0
1000
2000
3000
4000
5000
6000
Apr2006
May J une J uly Aug Sep Oct Nov Dec J an2007
Feb Mar
mln USD
Open interest Trading volume
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX SE: listing requirements
Requirement A1 Listing A2 Listing B Listing
One person and/or his affiliated persons can own no more than 75% of the issuer’s common registered equities
(only for shares)No more than 90%
Market value of the issueCS — 10 bln RUR
PS — 3 bln RUR
CS — 3 bln RUR
PS — 1 bln RUR
CS — 1.5 bln RUR
PS — 500 mln RUR
Period of issuer’s existence
not less than3 years 1 year
Break-even years 2 our of 3 last years —
Volume of issue the bond 1 bln RUR 500 mln RUR 300 mln RUR
Net assets of mutual fundopen/interval — 10 mln RUR
closed — 50 mln RUR
open/interval — 5 mln RUR
closed — 10 mln RUR
Monthly trading volume
for last 3 years
for shares — 25 mln RUR
for bonds — 10 mln RUR
for shares — 2.5 mln RUR
for bonds — 1 mln RUR
for shares — 1.5 mln RUR
for bonds — 500 thousand RUR
Monthly average volume for 6 months
for shares — 50 mln RUR
for bonds — 25 mln RUR
for mutual fund shares —
500 thousand RUR
for shares — 5 mln RUR
for bonds — 2.5 mln RUR
for mutual fund shares —
300 thousand RUR
for shares — 3 mln RUR
for bonds — 1 mln RUR
for mutual fund shares —
100 thousand RUR
Issuer’s observance of the
Corporate Governance normsThe formalized requests on observance of the Corporate Governance norms with confirmation documents
Financial statementCompilation and disclosure the financial statements according to
accounting standards IAS and US GAAP—
Information disclosure According to standards of FCSM
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX SE: development potential
CountryGrowth of national stock index in Jan—
Feb 2007
China (SSEC) +19.0%
Germany (DAX)
+4.9%
United Kingdom(FT-SE)
+1.4%
Japan (Nikkei) +0.4%
Russia(MICEX Index)
+0.3%
USA (DJIA) -0.9%
● The MICEX SE development potential is determined by the high growth rate of the stock market
Growth of world indexesin 2001—2006, %
MICEX Index
1173%
FT-SE0%
DAX3%
DJ IA16%
Nikkei25%
SSEC29%
0 200 400 600 800 1000 1200 1400
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Moscow Interbank Currency ExchangeMoscow Interbank Currency ExchangeMICEX: leader among exchanges of the CIS and CEE
● The capitalization of the Russian stock market is 100.5% of Russia’s GDPor 1.03 trillion USD (as of April 1, 2007)
● The volume of trading in the Russian stock market is over 60% of the stock market of the countries of the CIS. Central and Eastern Europe
The volume of trades on the equities marketin January-February 2007 and the number of
issuers
bln USDThe number
of issuers
NYSE 3932.9 1792
NASDAQ 2192.5 2794
London SE 1663.5 2591
Tokyo SE 1069.8 2394
Euronext 753.3 950
Deutsche Borse 647.9 654
Hong Kong Ex&Cl
216.9 1168
Shanghai SE 376.9 847
MICEX SE 129.7 195
Singapore Ex 51.9 463
Wiener Borse 19.0 97
Warsaw SE 13.1 278
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
MICEX Group: IT Infrastructure
Regional Access Centers
Market Information
Dissemination Systems of Information
Agencies
Electronic Broker Systems
connected to Regional Centers
Trading Members connected to
regional Centers
Trading Members connected via
Trading Network
Clients of Electronic Brokers
connected to Regional Centers
Electronic Broker Systems
Clients of
Electronic
Brokers
Trading Members connected via MICEX Internet Access
Systems
Clients of Electronic Brokers connected via
Internet
Clients receiving Market
Information via Internet
Trading Halls Internet Access
System
Web-server
MainComputer
Center
Back-upComputer
Center
Wide-area telecom Wide-area telecom infrastructure (“MICEX infrastructure (“MICEX
Trading Network”)Trading Network”)MICEXMICEX
InternetInternet
Telecom Providers
Core Telecom Infrastructure
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Moscow Interbank Currency ExchangeMoscow Interbank Currency Exchange
Contacts
● Address:۰ 13, B. Kislovskiy per., Moscow, 125009, Russia
● Telephone:۰ +7 495 234-48-11
● Fax:۰ +7 495 705-96-22
● E-mail:۰ [email protected]
● Web-server:۰ www.micex.com
Prepared by Information and Analysis Division of MICEX