ANNUAL REPORT
OF
OJSC “RUSSIAN TRADING SYSTEM”
STOCK EXCHANGE”
2007 2
CONTENTS
INTRODUCTION FROM THE CHIEF EXECUTIVE OFFICER ...... 4 THE RTS GROUP BACKGROUND ...... 6 THE POSITION OF OJSC RTS IN THE INDUSTRY...... 7 MAIN EVENTS 2007...... 9 MAIN AREAS OF THE RTS GROUP DEVELOPMENT ...... 11 INTERNATIONAL PROJECTS ...... 14 WORK WITH ISSUER COMPANIES...... 16 STRUCTURE OF THE RTS GROUP...... 17 CORPORATE MANAGEMENT ...... 19 Our corporate management principles ...... 19 Managing Bodies...... 19 Members of the Executive Bodies ...... 19 Main Shareholders ...... 20 Committees and Commissions...... 22 MARKETS OF THE RTS GROUP: 2007 MAIN RESULTS...... 26 STOCK MARKET: 2007RESULTS...... 28 New RTS Stock Market Participants ...... 35 THE FORTS DERIVATIVES MARKET...... 36 RTS START ...... 42 RTS Board...... 44 DEPOSITORY SERVICES...... 47 DCC Main Results in 2007...... 48 SKRIN SERVICES...... 50 RTS MONEY ...... 51 Clearing Services ...... 52 CJSC “RTS Clearing Center”...... 52 Clearing Services ...... 55 NP RTS ...... 55 RTS SETTLEMENT CHAMBER ...... 57 INFORMATION TECHNOLOGIES AND SOFTWARE...... 59 APPENDICES...... 60 MEMBERS OF THE BOARD OF DIRECTORS ...... 61 Non-arm’s Length Transactions...... 66 3 LIST OF AFFILIATES ...... 73 List of Instruments Admitted to Trading as of December 31, 2007...... 77 FORTS Derivatives Contracts Specifications...... 113 RTS Financial Indicators in Accordance with Russian Accounting Standards...... 119 DCC Financial Indicators...... 125
4
INTRODUCTION FROM THE CHIEF EXECUTIVE OFFICER
Dear shareholders, clients and partners
Allow me to present to you the annual report of OJSC “Russian Trading System” Stock Exchange” for 2007. It gives me great pleasure to point out that in 2007, our company continued to strengthen its leading position on the Russian stock market. The trading volume on all RTS Group markets rose by approximately six times and achieved a record amount of $687.4 billion. We have become more transparent in terms of our business structure and conformity to legislation; we have actively developed new products and improved services offering our participants and issuers an abundance of new opportunities and contributing to a more effective development of the Russian stock market as a whole.
An important event for the RTS Group was the completion of its restructuring in summer 2007. Now OJSC RTS is the Group’s center. It acquired 100% of RTS Clearing Center shares, 100% of RTS Settlement Chamber shares and 56.52% of Depository Clearing Company shares. From the start of the year, OJSC RTS has been acting as Organizer of Trading on all RTS markets.
By the end of the year, the RTS quotation lists included over 100 shares, making our stock exchange the leader among the Russian trading floors. As of December 28, 2007, 603 securities from 385 issuers were admitted to trading (at the beginning of the year – 563 securities from 350 issuers). Towards the end of the year, quotes could be made on the RTS Board for 1603 securities from 1213 issuers. The number of RTS Board instruments increased by 40%.
I am delighted to point out that out of 20 issuers conducting an IPO in Russia in 2007, all of them were listed on RTS. In this respect, our stock exchange is taking the lead in Russia. Another event, significant both for us and for the whole market, is that RTS START, a trading platform for growth companies with small and medium market capitalization, was launched at the beginning of the year. We provide companies with the most favourable conditions for entering the stock market. Towards the end of the year, RTS START included 5 shares. Among them there are securities of PJSC ARMADA which placed its shares on the stock exchange. 80% of ARMADA’s additional share issue was also placed through RTS.
At the beginning of the year RTS provided the market players with a convenient system of reporting on over-the-counter transactions, which allows the real volume of the Russian stock market to be assessed. As a result, transactions reported through RTS in 2007, were worth over $374.6 billion.
Last year RTS also extended the range of sectoral indices. New indicators emerged for some segments of economy such as power industry and finance. Another important factor is that FORTS, the RTS Derivatives Market, significantly strengthened its position. In 2007, the range of instruments of the Derivatives Market was improved both in terms of their quality and quantity. The number of contracts increased nearly threefold. At the beginning of 2007, it was possible to conduct transactions on only 23 instruments, yet towards the end of the year, 63 contracts were traded on FORTS, including 44 futures and 19 options. Among the important instruments launched were also futures contracts on Federal loan bonds. We also extended the range of instruments for the FORTS commodities section. Besides gold, silver and Urals oil futures, we organized trading in delivery contracts on diesel fuel and sugar. One of the most important events in the history of the Russian market is that the RTS Index futures contract became the most liquid instrument on the Russian stock market last year. Since August, its daily trading volumes have outnumbered those of any single blue chip stock. 5 Russia is moving towards the stage when the trading volumes of derivatives exceed the trading volumes of underlying assets, which is the balance as on most western markets. This trend dates back to the end of 2007. During the last year we consistently improved the trading technologies and client services for our market participants. Thus, we introduced the technology of Central Counterparty performed by the Not-for-Profit Partnership “RTS”, which is unique for the Russian market. It enables companies, including international banks, to trade with partial deposits of assets, while opening limits on a single participant – the NP RTS. It also offers many additional opportunities, including providing western clients with Direct Market Access. The introduction of this technology resulted in an increase of the trading volumes on the RTS stock market by 30% in the second half of 2007. In 2007, the system of risk management on the Derivatives Market was significantly improved. In May, a new system of portfolio margining of derivatives traders’ open positions was introduced, which increased the efficiency of carrying out operations combining futures and options. Since September 2007, intraday clearing has been carried out on FORTS, which enabled us to reduce the initial margin for some contracts by 30%. For example, the initial margin for the RTS Index futures contract – the most liquid instrument of the Russian stock market – decreased from 10% to 7.5%. At the same time the total FORTS guarantee fund increased significantly. Towards the end of 2007, the total volume of the RTS Clearing Center guarantee fund amounted to 18 billion roubles. Due to an increase in the number of the derivatives market players, we implemented new technology for conducting delivery of futures contracts in two stages. This enables clearing members of the Derivatives Market to fulfill their delivery obligations. I would like to take the opportunity to thank our shareholders, clients and partners for their trust and long years of successful cooperation and to say that we really appreciate their support.
Yours sincerely,
R.Yu. Goryunov CEO, OJSC RTS 6
The RTS Group Background
The RTS Group history dates back to 1995 when securities trading was launched on the RTS Classic Market. The main principle of trading on the Classic Market is the opportunity to make transactions, choosing the currency, method and time of settlement. Right from the start of trading in 1995, the Russian Trading System was based on non-anonymous quotes without advance depositing of securities or monies that enables us to organize trading in the widest possible range of securities. The RTS Index has been calculated based on the Classic Market share prices since 1995. This is the key indicator of the Russian stock market, acknowledged both in Russia and internationally. We constantly improve the method of its calculation, which makes it a key indicator of the Russian business activity. The RTS index is calculated on the basis of price quotes of 50 securities of most capitalized Russian companies. In February 2001 we launched RTS Board, the information system of the Russian Trading System Stock Exchange, which provides indicative quotations for securities not admitted to trading on RTS. At the end of the year, 1603 securities from 1213 issuers were quoted on the RTS Board. The RTS Derivatives Market (FORTS) was also launched in 2001. FORTS is the leading Russian derivatives market. The use of futures and options allows investors to employ various strategies: to carry out speculative transactions, hedge risks, conduct arbitrage, and effectively manage a stock portfolio with the help of RTS Index futures that became the most liquid instrument of the Russian stock market in 2007. Trading on the RTS T+0 Market began on November 23, 2004. This is the market where securities are traded anonymously via the delivery-versus-payment technology with 100% advance depositing of assets. The priority targets of the RTS T+0 Market are raising the liquidity of the rouble segment of the securities market by using a mechanism of effective control by a large number of professional securities market participants and the development of a second-tier shares market. On November 15, 2005, trading in the most liquid shares of the RTS Classic Market became electronic (anonymous). In 2007, we launched RTS START, an exchange trading platform for companies with small and medium market capitalization. In 2006, the restructuring of the RTS Group began. Upon its completion OJSC “Russian Trading System” Stock Exchange” became the trades institutor on all RTS markets. And Not- for-Profit Partnership “Russian Trading System” Stock Exchange” became the company with the largest capitalization in the Group. 7
THE POSITION OF OJSC RTS IN THE INDUSTRY
Over the past eight years, the capitalization of the Russian stock market rose by 22 times: from $60 billion in 1999 to over 1.3 trillion in 2007. The shares of banking, consumption, mining and telecommunication segments on the Russian stock market have increased. According to research on “The Ideal Model of the Russian Stock Market development to 2015,” prepared by the Russian National Association of Securities Market Participants (NAUFOR), by 2015 the capitalization of the Russian stock market will exceed $2.4-3 trillion and the annual volume of trading in shares on internal trading platforms may reach $4.6 – 5.7 trillion.
2007 was a successful year for the Russian stock market. Although its growth rate slowed down, new records were set: the RTS Index reached a level of over 2350 points. Last year the dependency of the Russian stock market on oil prices continued to decrease and a large number of the IPOs, conducted by large Russian issuers, made the stock market more attractive for investors. The year 2007 saw a record number of IPOs made by Russian issuers: 36 companies conducted public offerings of their shares totaling $33.1 billion in Russia and foreign trading platforms (33 issuers, their shares totaling $18.6 billion in 2006), out of which 20 issuers placed their shares totaling $18.4 billion in the Russian Federation (16 issuers, their shares totaling $7.3 billion in 2006). All the twenty issuers who conducted IPOs in 2007 were listed on RTS, which made RTS the IPO leader in Russia.
One of last year’s most important events was that the trading volumes of derivatives (futures and options) exceeded the trading volumes of underlying assets (bonds and shares). This situation is characteristic of all developed markets and Russia is now catching up.
In 2007, the FORTS derivatives market strengthened its positions. It is taking the lead in Russia, both in terms of traded instruments and trading volume (FORTS accounts for over 80% of the Russian derivatives trading volume). By the end of the year, 63 contracts were traded on FORTS, including 44 futures and 19 options.
By the end of the year, the RTS quotation lists included over 100 shares, which made RTS the leading Russian stock exchange. As of December 28, 2007, 603 securities from 385 issuers were admitted to trading (at the beginning of the year – 563 securities from 350 issuers).
RTS calculates the RTS Index, which has become the key indicator of Russian market activity. The RTS index is a reference point for most Russian and foreign investors. It is calculated on the basis of price quotes of 50 securities of the most capitalized Russian companies. The representative quality of the RTS Index is confirmed by the cooperation between RTS and Standard & Poor’s Index Services.
RTS actively promotes the securities market among various groups of issuers. It is for this reason that RTS START, a trading platform for companies with small and medium market capitalization, was created and the RTS Board Indicative Quotation System is developing actively. Securities quoted on RTS Board may possibly be listed for trading on RTS. Towards the end of the year, RTS Board allowed quotes to be made for 1603 securities from 1213 issuers.
RTS always offers its participants cutting edge technologies up to the highest standards of exchange trading adopted in western countries. Therefore, the Central Counterparty technology was implemented on the RTS shares market, which only allows limits on one participant, Not- 8 for-Profit Partnership “RTS”. The fact that there is no 100% advance depositing of assets accounts for a more flexible assets management.
The Derivatives Market saw the implementation of portfolio margining of participants’ open positions, which is unique for the Russian market, as well as the introduction of intraday clearing and the technology of delivery under futures contracts in two stages.
RTS is the only Russian stock exchange to offer foreign investors convenient technologies, such as the opportunity to trade in US dollars without 100% advance depositing of assets. The Central Counterparty technology enables trading participants to open limits with a single counterparty, the RTS Not-for-Profit Partnership, which is an essential factor for foreign participants. The futures and options market allows any investments to be hedged against unfavorable price changes. The opportunity of hedging is one of the critical factors for foreign participants entering new markets.
Last December, a number of records were set on the RTS securities market: 1. The record capitalization of the Russian stock market (RTS Stock Market + RTS Board) reached $1.492 trillion. 2. The record number of issuers listed on the Russian stock market (the number of the issuers’ shares listed on OJSC RTS) totaled 100. 3. The record number of issuers in the RTS Board system totaled 1000. 4. The record trading volume on the FORTS futures and options market amounted to $5.2 billion. 9
MAIN EVENTS 2007
January 9 OJSC RTS became the organizer of trading on all the RTS markets.
January 23 OJSC RTS implemented a system of gathering information on OTC transactions.
January 29 OJSC RTS launched RTS START – a platform intended for placing and trading securities issued by companies with small and medium market capitalization.
January 29 OJSC RTS became an affiliated member of the World Federation of Exchanges.
January 30 the gold futures option contract began to be traded on the FORTS Derivatives Market.
February 20 the Derivatives Section of RTS – FORTS started to trade diesel fuel futures contracts.
March 1 NP RTS waived the Not-for-Profit Partnership “Russian Trading System” Stock Exchange” licenses: the professional securities market participant’s license for organizing trading on the securities market and the stock exchange license.
March 20 the Russian Federal Financial Markets Service made a decision to assign number “01” to Open Joint Stock Company “Russian Trading System” Stock Exchange” (OJSC RTS) for bonds placement.
April 5 delivery of tangible goods under diesel fuel futures contracts was carried out for the first time in the history of the Russian market. The delivery volume totaled 800 tons, which was 60% of the open positions volume.
May 14 the additional share issue of OJSC RTS for a total sum of 79,999,900 roubles was registered by the Russian Federal Financial Markets Service. The number of additional issue securities totaled 799,999, the nominal value of each additional issue security was 100 roubles. While placing the shares, RTS attracted 721,119 million roubles. The additional shares offering price was 901.40 roubles per share.
May 23 the 7th Elite of the Securities Market Awards ceremony established by the Russian National Association of Securities Market Participants (NAUFOR) was held. The Russian Trading System Stock Exchange commodities futures won first place in the “Best new financial instrument promotion project” nomination.
May 23 a new system of portfolio margining was introduced on FORTS.
May 28 Open Joint Stock Company “Russian Trading System” Stock Exchange” acquired 56.52% of the Closed Joint Stock Company “Depository Clearing Company” ordinary registered shares.
May 29 the OJSC RTS shares were included in the RTS Board system.
June 25 FORTS, the RTS Derivatives Market, began to trade delivery futures contracts on Federal loan bonds.
July 5 RTS celebrated its 12th anniversary. 10 July 25 Roman Goryunov was appointed CEO of OJSC “Russian Trading System" Stock Exchange”.
July 26 futures contract on refined silver was introduced on the FORTS Derivatives Market.
July 31 the first IPO in the RTS START segment was conducted. While placing the additional share issue of PJSC Armada, 80% of the issue was placed through RTS.
August 6 Futures on the RTS Index celebrated their second anniversary. Over these two years, futures on the RTS Index became the most liquid instrument of the Russian stock market.
September 17 the Central Counterparty technology was introduced on the RTS Classic Market.
September 19 FORTS launched trading in delivery futures contracts on sugar.
September 21 Binbank Managing Company LLC began to establish the “Binbank – RTS Metals and Mining Index” Open-End Index Mutual Investment Fund. This is the first Russian index fund whose asset structure is determined by the RTS Metals and Mining sectoral index.
October 8 FORTS introduced intraday clearing session.
October 14 the National Numbering Agency assigned ISIN codes (International Securities Identification Number) to Indices, calculated by OJSC “Russian Trading System” Stock Exchange”.
November 1 OJSC “Russian Trading System” Stock Exchange” started to publish new sectoral indices: the RTS Electric Utilities Index (RTSeu) and the RTS Financials Index (RTSfn).
December 11 the number of shares included in the OJSC RTS quotation lists reached 100.
December 13 the trading volume of the FORTS futures and options market exceeded $5 billion. 11
MAIN AREAS OF THE RTS GROUP DEVELOPMENT
OJSC “Russian Trading System” Stock Exchange” is the backbone company of the RTS Group, belonging to market participants. Therefore, the RTS Group strategy is based on creating new products and services and improving those existing in order to meet the professional market participants’ needs, offer them new opportunities and provide them with the best possible trading conditions. To fulfill these tasks, RTS plans to maintain and develop its vertically integrated infrastructure holding including organizations involved in exchange, clearing, settlement and depository activities. RTS positions itself as a modern high-tech stock exchange comparable to leading world standards. RTS will be actively developing its activity in all areas related to trading securities, derivatives, conducting settlements and clearing, securities accounting and depositing.
Thus, in the mid-term perspective, RTS plans to develop the market of shares in the following areas:
Development of electronic trading: • Launch and development of trading with partial advance depositing of assets. • Positioning the order-driven market as a trading facility for high-liquidity securities. • Improvement of settlement and clearing procedures for trading (introduction of netting) based on the order-driven market principle. • Development and implementation of multi-currency transaction settlement. • Development of the FIX Gateway for western DMA-systems and order management systems. • Improvement of the market participants margining system.
Development of the Non-anonymous Market: • Positioning the quote-driven market as a trading facility for low-liquidity securities. • Promotion of delivery versus payment settlement technology as compared to free delivery conditions. • Holding events aimed at stimulating client demand among private and institutional investors.
Development of the REPO transactions market (implementing the technology of concluding REPO transactions with settlement in US dollars).
Within the framework of developing the RTS Derivatives Section (FORTS), the following measures are planned: • Increasing the trading volumes of derivatives, the underlying assets of which are indices, securities, commodities and money market instruments. • Extending the range of traded instruments. • Introducing flexible options. 12 • Improving the risk management system on the RTS Derivatives Market: increasing the overall reliability of the system and reducing the RTS Derivatives Market participants’ costs related to covering market and credit risks, implementing the technology of options margining and netting the RTS Derivatives Market participants’ counter positions.
On the over-the-counter market, RTS considers the following objectives strategically important: • Development of the RTS Board indicative quotation system. • Development of clearing mechanisms for OTC derivatives transactions. • Development of the Russian version of the ISDA OTC derivatives transactions model agreement. • Promoting a more effective usage of the system for collecting reports on OTC transactions among the market participants. • Promoting the RTS technology solutions and using them on all the markets while concluding OTC transactions.
In terms of developing clearing, which is one of the RTS priorities, the following measures are planned: • Transferring the clearing activity of all the RTS markets to CJSC RTS Clearing Center and establishing a unified clearing organization. • Creating a unified system of position margining on the RTS markets. • Increasing the size of Contingency and Reserve funds.
RTS pays significant attention to working with securities issuers. The following measures are planned in this respect: • Expanding the presence of OJSC RTS in the segment of initial and secondary placements of Russian issuers. • Developing the RTS START trading platform, including the RTS START list of instruments and a Market Makers institution for RTS START instruments • Integrated approach to working with issuers, companies belonging to the real sector of economy.
The first priority for any stock exchange is technology. Within the scope of developing and improving the RTS technology solutions, the following measures are planned: • Development of the RTS IT-strategy. • Increasing the efficiency and reliability of the applied trading and settlement technologies. • Transition to a world standard trading platform. • Developing solutions for carrying out twenty-four-hour trading (24/7 trading platform). 13 • Developing the new RTS workstation Plaza II providing access to any of the RTS markets from the unified terminal. • Increasing the efficiency of the FORTS trading system. • Improving the network infrastructure to back up the most critical network nodes. • Development of a unified technological policy for RTS and the Depository Clearing Company. • Establishing a unified technical center for RTS and the Depository Clearing Company. • Increasing the operating speed of workstations and the gateway. • Creating multilingual interfaces for the workstations used on the RTS markets.
In terms of developing new markets, RTS considers the following measures to be strategically important: • Development of the foreign securities market. • Development of the Russian depositary receipts market. • Development of the exchange-traded bond market.
RTS is interested in expanding its business through developing relations with foreign investors, attracting various categories of investors to trading on RTS and expanding the RTS presence on the CIS markets etc. The primary tasks in this respect are: • Entering the Ukrainian stock market, launching and further developing stock exchange trading on the basis of the RTS technologies, as well as considering the potential of other CIS markets. • Increasing the number of global banks which operate on RTS. 14 INTERNATIONAL PROJECTS
1. In January 2007, OJSC “Russian Trading System” Stock Exchange” became an affiliated member of the World Federation of Exchanges (WFE). Before this, starting from 2003, RTS was a Corresponding Member.
WFE General Secretary Thomas Krantz, noted in correspondence that RTS meets the high requirements for WFE membership.
The raising of the RTS status in the World Federation of Exchanges is a result of fruitful work of the stock exchange in developing stable relationship with the world leading exchanges.
Having become a WFE affiliated member, RTS was granted a unique opportunity to carry out more efficient business operations in line with the world’s leading trading floors. WFE, in turn, acquired a reliable partner on the post-Soviet territory.
2. In 2007, RTS actively continued its work in major international professional organizations and associations. Besides WFE, RTS is a member of the Association of Futures Markets (AFM), the UK Futures & Options Association (FOA) and the International Association of Exchanges of the CIS.
3. In 2007, RTS participated in the following events:
- February, International Petroleum Week 2007, London - February, Mergers and Acquisitions in Russia and the CIS, London - March, AFM 10th Anniversary Conference, Buenos Aires - March, FIA Conference, Boca Raton, the USA - March, World Exchange Congress, Dubai - April, 9th Conference of Central Securities Depositories, Seoul - April, Management of market risks and risks of unfavorable oil and gas prices changes with the help of derivatives, London - April, 10th Annual Russian Economic Forum, London - May, Euromoney Financial Trading, Seoul - May, WFE Annual conference, Mexico - May, Banking on Russia, London - June, Commodity Investment World, Shanghai - June, FOW Derivatives World, London - June, Commodity Investment Summit, London - September, SFOA “Bürgenstock Meeting”, Montreux - September, FIA Options conference, New-York - September, GL Forum, London - October, WFE General Assembly and Annual Meeting, Shanghai - October, Russian Securities Market Day, London - November, Crude Oil & Petroleum Products Trading And Price Risk Management, Moscow - November, FIA Expo, Chicago
4. In 2007, RTS started to prepare for entering the Ukrainian securities market.
5. In December 2007, RTS became a member of the FISD, an association that unites the leading stock exchanges, banks, brokers and information agencies. FISD’s mission is to standardize 15 financial information distribution and optimize the data transfer process from the source to the consumer. Having become a member of the association, our stock exchange was given the opportunity to use the experience and database of the world financial community. Furthermore, regular participation in the events of the association helps RTS follow the recent trends in the stock exchange field and increase both its competitive ability and recognition among international market players. 16 WORK WITH ISSUER COMPANIES
One of the priorities of the Russian Trading System Stock Exchange is to maintain and support issuer companies on the securities market. Having operated on the securities market for more than 10 years, Russian Trading System Stock Exchange has significant experience in working with issuers and asset management companies: · consulting on issues of placement/trading of securities; · fast admission of securities to trading with/without the listing procedure within up to 17-days/23-days; · interaction with issuers whose shares are already traded on RTS using an ultra- simplified procedure of document interchange when admitting additional issue shares to trading; · providing the issuer with a quarterly statistical report on the state of the market of the securities being traded (information on the volumes of concluded securities transactions, the number of concluded securities transactions, the highest, lowest and weighted average price of securities, and the market capitalization of the issuer); · organizing and holding, in cooperation with Managers of the specialized subdivisions of RTS, working meetings for issuers concerning the introduction of new editions of the Rules for Admission of Securities to Trading on the RTS Stock Exchange and also concerning IPOs, the launch of new projects and the development of the liquidity of the market of securities of issuers and managing companies. Technology has been completed and successfully implemented for admitting securities to trading during the process of their placement and circulation. In 2007, shares of 14 issuers were placed through IPOs and listed on the RTS stock market: SITRONICS JSC (SITR), Polymetal OJSC (PMTL), NUTRINVESTHOLDING OJSC (NTRI), Pharmstandart OJSC (PHST), ROSINTER RESTAURANTS HOLDING OJSC (ROST), PIK Group of Companies OJSC (PIKK), ARMADA PJSC (ARMD), Novorossiysk Commercial Sea Port PJSC (NMTP), Company M.video (MVID), LSR Group (LSRG), Synergia OJSC (SYNG), Bank of St. Petersburg OJSC (STBK). The issuers conducting IPOs actively employed all the three available sections of OJSC RTS quotation lists for entering the stock market: V, I, “out of list.” In 2007, quotation list V was used by seven issuers, and quotation list I was used by five issuers. Three companies conducted IPOs using “out of list”. Two issuers, the Savings Bank of the Russian Federation OJSC (SBER) and RBK Information systems JSC (RBCI) conducted Follow-on (placement of additional issue of new shares). Two issuers, MMK OJSC (MAGN) and Uralkali OJSC (URKA) conducted an SPO (the owners sold their blocks of shares). These companies’ shares had been admitted to trading long before they conducted follow-ons and SPOs in 2007. Shares from the additional issues of ARMADA PJSC and RBK Information systems JSC were placed using the exchange technologies of OJSC RTS, which enabled the companies to attract about $100 million of investment. From January 2007, RTS START, which is an exchange trading platform for companies with small and medium market capitalization, has been in operation. In 2007, shares of five issuers were included in the RTS START segment: BF Kommunar OJSC (KOMM), KMZ OJSC (KMTZ), SiGMA OJSC (SGMA), NEFGAZ OJSC and ARMADA PJSC (ARMD). In 2007, within the framework of providing consulting support to issuer companies, the exchange’s specialists organized conferences and working meetings on current securities market topics relevant to the issuer companies. Aside from events arranged through RTS efforts, stock exchange employees play an active role in conferences, forums and congresses carried out by external organizations not only in Russia, but also abroad. Articles are published by stock exchange specialists on an ongoing basis, and interviews are given to the media on current stock market issues. 17 STRUCTURE OF THE RTS GROUP
OJSC “Russian Trading System” Stock Exchange”, the backbone company of the RTS Group, owns the following stakes in the Group Companies:
• 100% of the CJSC RTS Clearing Center (CJSC RTS CC) shares; • 100% of the NCO RTS Settlement Chamber (NCO RTS) shares; • 56.52% of the CJSC Depository Clearing Company (CJSC DCC) shares;
CJSC “RTS Clearing Center” NCO RTS Settlement Chamber CJSC “Depository Clearing Company”
100%
56.52% 100% OJSC “RUSSIAN TRADING SYSTEM” STOCK EXCHANGE”
In accordance with the RF legislation, NP RTS and OJSC RTS are affiliated members (are part of the group) on the following grounds:
- the same individual acts as the sole executive body of NP RTS and OJSC RTS (Paragraph 4, Clause 1, Article 9 of Federal Act No. 135-FZ dd. 26 July 2006 “On Competition Protection” with amendments dd. December 1, 2007);
- the same individuals account for over 50% of the Collegial Executive Body members and the Board of Directors of NP RTS and OJSC RTS (Paragraph 11, Clause 1, Article 9 of Federal Act No. 135-FZ dd. 26 July 2006 “On Competition Protection” with amendments dd. December 1, 2007).
Not-for-Profit Partnership “Russian Trading
System” Stock Exchange”
25.5% 25%
NP Saint Petersburg Stock Exchange CJSC SKRIN CORPORATE MANAGEMENT
Our corporate management principles
In its activity OJSC RTS follows the guidelines of the Code of Corporate Governance. All the shareholders get efficient legal support
The rights are guaranteed by: • the reliable system of record of title to shares; • the high reputation of the Company; • no risks of share erosion (making a decision with regard to placement of new share issues within the limits of quoted shares is part of the competence of the general shareholders meeting; • the Company’s information transparency: - the corporate website of the Company (www.rts.ru) contains information about the Company in both Russian and English; - the shareholders have the opportunity to receive complete and reliable information about the Company’s financial status, its business results and any significant factors that relate to its business activity. • effective control over the Company’s business activity: - on the part of the Executive Board – control over the Company’s fulfillment of production and financial plans; - on the part of the Board of Directors – control over the Company’s management performance; - on the part of the Audit Committee under the Board of Directors – supervision of the system of internal control over the Company’s business activity and risk management system; - on the part of the Company’s Auditor – control over the accuracy of financial reporting; - on the part of the Audit Committee – control over the Company’s business activity and the activities of managing bodies.
Managing Bodies
The Directors’ qualifications and experience ensure the efficient performance of the Board of Directors. Independent directors, elected to the RTS Board of Directors, meet the requirements of the Corporate Code of Conduct of the Federal Securities Market Committee. The fact that there are independent directors in the Board increases investors’ confidence in the Company and enables them to shape an objective opinion on issues under discussion. Members of the Company’s executive bodies are not part of the Board of Directors. The Chairman of the Board of Directors has an extensive work experience and a high professional reputation in the Company’s business segment. One committee operates under the Board of Directors: the Audit Committee. During the reporting period, 33 Board meetings were carried out to make decisions to convene the General Shareholders Meeting as well as decisions in respect to preparing the above mentioned meetings, approving the budget, reports of the Company’s executive bodies, approving non-arm’s length transactions, shareholding in other companies, approving documents related to the Company’s activity and other issues within the competence of the Board.
Members of the Executive Bodies
The sole executive body of the Company is the Chief Executive Officer of the Executive Board. Until 25 July 2007, this position was held by Oleg Petrovich Safonov. Subject to his resignation letter dated 25 July 2007, the General Shareholder Meeting made the decision to 20 terminate his powers early and elected Roman Yurievich Goryunov as the new CEO of the Executive Board. In 2007, the Board, which is the Company’s Collegial Executive Body, consisted of the CEO of the Executive Board and members of the Executive Board appointed by the resolution of the Board of Directors.
The Members of the Board are as follows:
Name Position Birth date Roman Yurievich Goryunov Chairman of the Board 19 May 1975
Anna Vasilyevna Kuznetsova Member of the Board 20 September 1974
Dmitriy Alexandrovich Shatskiy Member of the Board 10 February 1960 Yevgeniya Ivanovna Gracheva Member of the Board 13 April 1964
Main Shareholders
List of companies/individuals registered in the RTS share register
Ordinary shares Name of the Company % of No or full name of the Charter Individual entities) Capital individuals) Account Type* number place of residence (for Individual / legal entity** registration data (for legal Legal address / permanent Certifying Document / state
1 2 3 4 5 6 7 8 1 Deutsche Securities O LE State Registration Certificate No. Bldg. 2, 82 159,997 9.9998 Closed Joint Stock 054.152 dated October 12, 1994 Verkhnyaya Company Moscow Registration Chamber Sadovnicheskaya PSRN 1027700094487 dated St., Moscow 107140 August 5, 2002, the Administration of the Russian Ministry of Taxes and Duties for Moscow 2 URALSIB Capital O LE State Registration Certificate No. 8 Yefremova St., 82,727 5.1704 Limited Liability 067.964 dated October 14, 1997, Moscow 119048 Company Moscow Registration Chamber PSRN 1027739000739 dated July 11, 2002, the Interdistrict Tax Inspectorate of the Russian Ministry of Taxes and Duties No. 46 for Moscow 21 3 Depository Clearing NH LE State Registration Certificate No. Bldg. B, 31 391,284 24.4553 Company Closed Joint 623.296 dated October 29, 1993 Shabolovka St., Stock Company Moscow Registration Chamber Moscow 115162 PSRN 1037739143497 dated September 03, 2002, the Administration of the Russian Ministry of Taxes and Duties for Moscow No. 39 for Moscow 4 Investment O LE State Registration Certificate No. Bldg. 1, 4/10 159,982 9.9989 Company Troika 021.385 dated March 13, 1993, Sadovaya Dialog Closed Joint Moscow Registration Chamber Triumfalnaya St., Stock Company PSRN 1027739007768 dated July Moscow 125009 22, 2002, the Interdistrict Tax Inspectorate of the Russian Ministry of Taxes and Duties No. 46 for Moscow
5 ATON Limited O LE State Registration Certificate No. Bldg. 6, 27 Pokrovka 157,055 9.8159 Liability Company 852.654 dated January 20, 1995, St., Moscow 105062 Moscow Registration Chamber PSRN 1027739583200 dated November 20, 2002, the Interdistrict Tax Inspectorate of the Russian Ministry of Taxes and Duties No. 46 for Moscow 6 Renaissance Broker O LE State Registration Certificate No. Usad’ba-Center, 110,735 6.9209 Limited Liability 073.963 dated July 29, 2002, Floor 4, 22 Company Moscow Registration Chamber Voznesenskiy Lane, PSRN 1027739121981 dated Moscow 125009 August 28, 2002, the Administration of the Russian Ministry of Taxes and Duties for Moscow 7 Alpha Bank Open O LE State Registration Certificate No. 27 Kalanchyovskaya 85,712 5.3570 Joint Stock Company 1326 dated January 29, 1998, by St, Moscow 107078 the central Bank of the Russian Federation PSRN 1027700067328 dated July 26, 2002, the Administration of the Russian Ministry of Taxes and Duties for Moscow The remaining 452,507 28.2816 registered legal entities and individuals, each of which holds less than 5% of OJSC RTS ordinary registered shares
Total, according to 1,599,999 100.00 the register
* Account types ** Individual / Legal entity O – owner LE – legal entity NH – nominal holder I – individual AM – asset manager JP – joint property account UE – unidentified entity’s account S – special account PH – pledge holder
22
Committees and Commissions
Activity of the Information Committee in 2007
To improve the quality of indices management and reflect the market situation most accurately, the Board of Directors made the decision to amend the methods of calculating RTS Indices: RTS Index, RTS Index-2 and Sectoral Indices starting from September 17, 2007.
On November 1, 2007 OJSC “Russian Trading System” Stock Exchange” started to publish a new sectoral index, the RTS Index – Electric Utilities (RTSeu). The main purpose of calculating the RTS Index – Electric Utilities is to provide the investment community with new development dynamics indicators of the power industry, which will enable the situation on the Russian stock market to be assessed and investment strategies to be developed more effectively. The RTS Index – Electric Utilities includes 14 shares of the leading power generating, grid and sales companies. Furthermore, RTS has started to publish the RTS Index – Financials (RTSfn), which is necessary to assess the Russian financial market. RTSfn includes 8 securities of the banks that trade on the Russian stock market.
In accordance with the Russian Federal Financial Markets Service regulatory acts, market participants started reporting all the OTC transactions on the trading platform.
In December 2007, RTS became a member of FISD, an association that unites the leading stock exchanges, banks, brokers and information agencies. FISD’s mission is to standardize financial information distribution and optimize the data transfer process from the source to the consumer. Having become a member of the association, our stock exchange was given the opportunity to use the experience and database of the world financial community. Furthermore, regular participation in the events of the association helps RTS follow the recent trends in the stock exchange field and increase both its competitive ability and recognition among international market players.
The method of calculating the RTS Total Return Index (an index that includes dividends) has been developed. This index enables to take into account both the volatility of shares that are included in the Index and the dividends paid while calculating the return on investments in basket securities for a certain period.
In 2007, the first RTS Sectoral Indices mutual investment funds were created. The structure of the index fund reflects the breakdown of shares by weights in the index which forms the basis of the fund. A sectoral index mutual investment fund is, therefore, an excellent facility of passive investment in a certain sector of the economy.
Activity of the Legal Committee in 2007
Among the main changes in the OJSC RTS and NP RTS regulatory documents, are those targeted at introducing the settlement procedure using the central counterparty technology. Necessary changes were made to the RTS Trading Rules and NP RTS Clearing Rules, as well as to some other documents. The Central Counterparty technology that was launched on September 17, 2007 in T+0 Trading (trading with full preliminary deposit of assets) and Electronic Trading stipulates that NP RTS as a clearing organization is the party to obligations on transactions concluded on OJSC RTS in the above mentioned trading modes. Furthermore, the standard form of the REPO Agreement was approved in 2007 and may be used by the securities market participants while concluding REPO contracts (Minutes of the RTS Board of Directors meeting No. 07-26-1309 dd. September 13, 2007). The RTS REPO 23 Agreement settles all the necessary matters related to fulfillment of obligations under REPO transactions, including execution of the first and the second parts of REPO, making and settling margin requirements and consequences of non-fulfillment of obligations on REPO transactions. During 2007, the RTS Legal Committee continued its active work, reviewing the main internal documents of OJSC RTS and NP RTS, including the amendments necessary to implement settlement procedures using the Central Counterparty technology as well as the OJSC RTS REPO Agreement. In March 2007, all the major committees, including the Legal Committee, were transferred from NP RTS to OJSC RTS. New provisions on the committees were approved, but the members of the committees remained the same. In November 2007, new members of OJSC RTS and NP RTS committees were elected, including the members of the Legal Committee.
Activity of the Disciplinary Commission in 2007
The Disciplinary Commission is a regular body of the Stock Exchange. The members of the Committee are elected from market participants, members of the Stock Exchange Staff, independent experts (those who are not employed by trading members), other individuals and the appointed Chairman of the Stock Exchange Disciplinary Commission. The main objective of the Disciplinary Commission is to ensure sufficient conditions for the professional activity of market participants, to support the development of the standards and regulations of the professional activity and the professional code of ethics for the securities market, as well as monitoring their implementation, to protect the interests of owners of securities and other clients of professional market participants taking part in trading, to develop rules and regulations of carrying out operations with securities within the framework of implementing the stock exchange chartered aims and objectives and in accordance with its authority. In particular, the Stock Exchange Disciplinary Commission: а) independently and / or together with other Stock Exchange bodies (authorized persons) monitors observation by market participants of the professional standards, the professional code of ethics and the provisions of the Stock Exchange documents; b) on its own initiative or on the initiative of a Stock Exchange body or authorized person, upon request of market participants or third parties, independently and / or together with other Stock Exchange bodies (authorized persons), investigates cases of violations by market participants of the provisions of the Stock Exchange documents, professional standards and professional code of ethics; c) independently applies disciplinary measures or recommends such applications to the Stock Exchange Board of Directors, makes adjustments to resolutions to apply disciplinary measures, passed by the Chairman of the Stock Exchange Disciplinary Commission. In 2007, no meetings of the Commission were held.
Activity of the Surveillance Department in 2007
During 2007, the Surveillance Department monitored the current RTS market to find cases of concluding non-standard transactions. The results of the inspections carried out in respect to the revealed violations were referred to the Russian Federal Financial Markets Service. Furthermore, the Department inspected fulfillment of contractual obligations by market- makers. The appropriate reports were prepared and referred to the recipients. In accordance with the requirements of the Regulations on the Organization of Trading on the Securities Market, the Department also inspected the activity of the OJSC RTS trading participants who concluded 24 agreements on fulfillment of market-maker’s obligations with OJSC RTS and the issuers. The inspection revealed no violations. Monthly and quarterly reports of the Stock exchange as a professional securities market participant were duly prepared and presented to the Russian Federal Financial Markets Service last year.
25
MARKETS OF THE
RTS GROUP
26 Markets of the RTS Group: 2007 Main Results 2007 was a landmark year for the RTS development and further strengthening of the RTS positions on the Russian financial market. The trading volumes on all the RTS Group markets increased nearly sixfold and reached a record amount of 687.4 billion dollars. The stock exchange actively developed new products and improved services offering our participants and issuers an abundance of new opportunities as well as contributing to a more effective development of the Russian stock market as a whole.
Indices
By the results of 2007, RTS Index has risen by 19.2% and at the end of the trading session on December 28, 2007 it reached 2290.51 points. The lowest RTS Index value last year – 1724.7 points – was registered on May 30, and on December 12 it reached a record amount of 2359.85.
The second-tier stock index, RTS-2, increased by 43.1% and reached 2629.56 points. The lowest value of the RTS-2 Index in 2007 was registered on January 11 – 1788.6 points, and on December 28, the Index reached a record amount of 2629.56.
In 2007, the range of the RTS sectoral indices was extended by the RTS Index – Electric Utilities and the RTS Index – Financials.
RTS Index Value at Value at Minimum Maximum Change per annum Start of Year End of Year Value Value
1995 100* 82.92 - 17.08% 68.09 (2 XI) 101.3 (7 IX)
1996 87.35 200.5 + 129.54% 66.69 (18 III) 227.79 (4 VII)
1997 213.38 396.86 +85.99% 197.54 (5 V) 571.66 (6 X)
1998 411.61 58.93 -85.68% 37.74 (2 X) 421.55 (6 I)
1999 59.7 175.26 +193.57% 54.18 (28 I) 175.26 (31 XII)
2000 179.01 143.29 -19.95% 130.32 (21 XII) 255.89 (27 III)
2001 131.02 260.05 +98.48% 130.06 (3 I) 260.05 (29 XII)
2002 267.7 359.07 +34.13% 262.03 (3 I) 426.91 (20 V)
2003 360.79 567.25 +57.3% 335.33 (27 I) 650.09 (20 X)
2004 573.94 614.11 +6.99% 518.15 (28 VII) 785.52 (12 IV)
2005 614 112 5.6 +83.33% 590.62(21 I) 1139.04(23 XII)
2006 1128.2 1921.92 +70.75% 1128.2(10 I) 1927.74(29 XII)
2007 1921.92 2 290.51 +19.2% 1 724.69 (30 V) 2 359.85 (12 XII) * - data as of the beginning of the RTS Index calculation – September 1, 1995
27
SET OF RTS INDICES Maximum Minimum Index 2007 2006 Change, % Value Value RTS Index 2 290.51 1 921.92 19.2% 2 359.85 (12 XII) 1 724.69 (30 V) RTS-2 Index 2 629.56 1 838.14 43.1% 2 629.56 (28 XII) 1 788.59 (11 I) RTS Index – Metals & Mining 360.19 232.59 54.9% 379.69 (8 XI) 218.23 (10 I) RTS Index – Oil & Gas 286.94 282.76 1.5% 299.19 (12 XI) 219.14 (30 V) RTS Index – Consumer & Retail 369.50 278.59 32.6% 369.5 (28 XII) 274.47 (18 I) RTS Index - Industrial 407.05 242.42 67.9% 407.05 (28 XII) 239.41 (11 I) RTS Index - Telecom 324.35 255.38 27.0% 326.68 (12 XII) 236.4 (05 III) RTS Index – Financials 792.06 681.89 16.2% 824.59 (23 VII) 628.33 (10 I) RTS Index – Electric Utilities 466.78 349.11 33.7% 468.56 (16 IV) 343.61 (10 I)
Trading Volume of the RTS GROUP, million dollars Change, 2006 2007 % Total trading volume, million dollars 118.041 687.406 482.35 FORTS, million dollars 100.157 297.541 197.07 Trading Volume of securities, million dollars 17.319 15.237 -12.02 Reported OTC transactions, million dollars including: 545 374.628 — RTS Board, million dollars 545 752 38.00
Trading Volume of the RTS Group, million dollars per six months First half of 2007 Second half of 2007 Change, % Total trading volume, million dollars 261.270 426.370 63.2 FORTS, million dollars 87.367 210.174 140.6 Trading Volume of securities, million dollars 6.612 8.625 30.4 Reported OTC transactions, million dollars including: 167.291 207.571 24.08 RTS Board, million dollars 322 430 33.5
28
Stock market: 2007 results
Within the framework of the RTS Group restructuring, the Classic Market and RTS Board were successfully transferred from NP RTS to OJSC RTS, where trading on the RTS T+0 Market and FORTS used to be carried out. Thus, the Group center, OJSC RTS, became the unified organizer of trading on all the markets. By conducting the restructuring, we contributed significantly to the integration and unification of the RTS trading platforms.
In 2007, trading technologies on the RTS Stock market continued to develop successfully. The trading volume of securities on RTS equaled 389.9 billion dollars in 2007 taking into account all types of transactions, including OTC transactions.
At the beginning of the year, a new system of gathering information about OTC transactions was implemented at OJSC RTS. Market participants were offered an OTC transactions reporting scheme via the RTS Plaza Trading System, including the RTS Gateway and the File Gateway of the EDI System. Later on, market participants were given the opportunity to report OTC transactions on OJSC RTS through QUIK. The convenient system of collecting information about OTC transactions was much appreciated by market participants. Over 95% of all OTC transactions concluded in Russia in 2007 were reported through the RTS trading infrastructure.
The most significant event for the whole Russian organized securities market during the reporting period was implementing the technology of concluding transactions through the Central Counterparty. This technology is used for Electronic Trading on the Classic Market and Trading with full preliminary depositing of assets (T+0 Market). OJSC RTS was the first Russian stock exchange to initiate the Central Counterparty technology, which is widely used by the world leading trading platforms. Another important step in the stock market development was putting into operation the auto- conversion technology which allows Russian residents to settle transactions on the Classic Market on DVP terms in US dollars. The list of securities used as collateral for electronic trading transactions was extended. This opportunity provided Electronic Trading participants with more flexibility in managing their assets, limits and settlements planning. The RTS REPO Agreement became effective after much effort on the part of the developers and relevant committees. Parties to the REPO contract signed on the terms and conditions of the RTS REPO Agreement can be not only RTS trading members but also their clients and counterparties on the OTC REPO market. The procedure for determining the initial price was developed and implemented. The procedure relates to securities first admitted to trading on the stock exchange and is aimed at creating conditions to avoid strong price fluctuations, prices manipulation and market destabilization. To increase the efficiency of working on RTS, we continually upgrade the system of monitoring market makers’ activity and forming reports on fulfillment of obligations. Last year such work was carried out on two occasions. The upgrades that were performed simplified the working process of the back offices of the companies that act as market-makers, as well as the work of the stock exchange itself. The monitoring system became universal and now applies both for the Classic Market and the RTS T+0 Market. The reporting period was also marked by further improvement of services for private investors. One of such services is the Private Investor Portfolio information-analytical system that enjoys great popularity. By the end of 2007, this system had over 15 thousand registered users, which 29 is twice as many as one year before. The number of registered users rocketed after the launch of the new version of this service with significantly extended and improved functionality.
Within the implementation of the RTS Quality Management System in accordance with the international standards ISO 9001:2000, we regularly carried out activities aimed at identifying market participants’ needs and further data processing with the purpose of finding out possible ways to improve the quality of services provided by the stock exchange.
Development of the Project Stock Exchange for Issuers
Extending the list of high-quality financial instruments and development of the second-tier shares market remained one of the RTS priorities for 2007. For these reasons, we put a lot of effort into developing the Stock Exchange for Issuers Project in 2007. Market-makers maintained quotations in a wide range of securities. As of the end of 2007, 9 market-makers maintained two- sided quotations of securities from 16 issuers on the Classic Market. On the T+0 Market 6 market- makers maintained two-sided quotations of securities from 6 issuers. Throughout the year we actively cooperated with the issuers, held a number of working meetings and events on issues related to developing the liquidity of issuers’ securities using the market-makers institution. On the RTS Stock market, the key professional securities market participants act as market-makers.
List of effective Market-Maker Agreements as of December 31, 2007 The RTS Classic Market Security Quotation MM Ticker Company Name, Share Type List Ticker Market-Maker Name ARMD ARMADA PJSC, ordinary B ATON UniCredit Aton CJSC DIXY DIXY GROUP OJSC, ordinary I UFGR Deutsche Securities CJSC Kosogorsky Metallurgic Plant KMTZ OJSC, ordinary Out of List ECAP IC Energocapital CJSC Kommunar Paper Mill OJSC, KOMM ordinary Out of List ANTC Antanta Capital LLC LSRG LSR Group OJSC, ordinary I UFGR Deutsche Securities CJSC Company M.video OJSC, MVID ordinary I RENC Renaissance Broker LLC Neftekamsk Car Factory OJSC, NFAZ ordinary Out of List ECAP IC Energocapital CJSC Novorossiysk Commercial Sea NMTP Port PJSC, ordinary C TROY IC Troika Dialog CJSC NUTRINVESTHOLDING PJSC, NTRI ordinary B RENC Renaissance Broker LLC Financial Company Profit Pharmstandart OJSC, ordinary PHST B PROF House LLC PIK Group of Companies OJSC, PIKK ordinary B UFGR Deutsche Securities CJSC Oil Company Rosneft OJSC, ROSN ordinary B UFGR Deutsche Securities CJSC RTMC RTM OJSC, ordinary B BUBS UBS Securities LLC OTKRITIE Brokerage House RTM OJSC, ordinary RTMC B OPEN OJSC RTMC RTM OJSC, ordinary B TROY IC Troika Dialog CJSC 30 SITR SITRONICS OJSC, ordinary B RENC Renaissance Broker LLC Bank of St. Petersburg OJSC, STBK ordinary C UFGR Deutsche Securities CJSC VTBR VTB Bank OJSC, ordinary B RENC Renaissance Broker LLC
RTS T+0 Market
Security Quotation MM Ticker Company Name, Share Type List Ticker Market-Maker Name MAGNG MMK OJSC, ordinary B RFCE IC RFC LLC TATNEFT named after V. D. Investment Bank TATNPG Shashin OJSC, privileged А2 VSTA VESTA LLC TGKBG TGC-2 OJSC, ordinary B NMOS NOMOS-BANK OJSC TGKIG TGC-9 OJSC, ordinary B OLMA IC OLMA OJSC TGKJG TGC-10 OJSC, ordinary B UNPA UNICOM Partner LLC Renaissance Broker TRMKG TMK OJSC, ordinary B RENC LLC
During the reporting period within the scope of the Stock Exchange for Issuers Project securities of the following issuers were also maintained in quotation lists: Security Quotation MM Ticker Company Name, Share Type List Ticker Market-Maker name NOMOS-BANK BANEG Bashneft OJSC, ordinary Out of List NMOS OJSC NOMOS-BANK BANEPG Bashneft OJSC, privileged Out of List NMOS OJSC Metallinvestbank AKB CHMFG Severstal OJSC, ordinary B MEIN OJSC Credit Suisse Bank CHZNG CZP OJSC, ordinary B CSFB (Moscow) CJSC ENCOG Sibirtelecom OJSC, ordinary А2 BUBS UBS Securities LLC ENCOPG Sibirtelecom OJSC, ordinary А2 BUBS UBS Securities LLC IRKTG IRKUT Corporation OJSC, ordinary B ALPL ALOR+ LLC IRKTG IRKUT Corporation OJSC, ordinary B UNPA UNICOM Partner LLC KUBNG STC OJSC, ordinary А2 BUBS UBS Securities LLC Instroyinvest IMC KUBNG STC OJSC, ordinary А2 INSI LLC KUBNPG STC OJSC, privileged B BUBS UBS Securities LLC Instroyinvest IMC KUBNPG STC OJSC, privileged B INSI LLC Renaissance Broker MAGNG MMK OJSC, ordinary B RENC LLC Mashinostroitelny Zavod OJSC, IC Troika Dialog MASZG ordinary Out of List TROY CJSC Instroyinvest IMC MTSSG MTS OJSC, ordinary Out of List INSI LLC MTSSG MTS OJSC, ordinary Out of List OLMA IC OLMA OJSC IC Troika Dialog MTSSG MTS OJSC, ordinary Out of List TROY CJSC NLMKG NLMK OJSC, ordinary B BUBS UBS Securities LLC NLMKG NLMK OJSC, ordinary B NMOS NOMOS-BANK 31 OJSC NNSIG VolgaTelecom OJSC, ordinary А2 BUBS UBS Securities LLC NNSIPG VolgaTelecom OJSC, privileged А2 BUBS UBS Securities LLC NOMOS-BANK OGKBG OGK-2, ordinary B NMOS OJSC PHST Pharmstandart OJSC, ordinary B MBWB MDM Bank OJSC Deutsche Securities PMTL Polymetal OJSC, ordinary B UFGR CJSC Deutsche Securities RASP Raspadskaya OJSC, ordinary B UFGR CJSC IC VELES Capital SGMA SiGMA OJSC, ordinary Out of List VELS LLC Sayano-Shushenskaya Hydropower IC Troika Dialog SSHGG Plant OJSC, ordinary TROY CJSC TRNFPG Transneft OJSC, privileged Out of List BUBS UBS Securities LLC Instroyinvest IMC TRNFPG Transneft OJSC, privileged Out of List INSI LLC URSIG Uralsvyazinform OJSC, ordinary А1 UNPA UNICOM Partner LLC URSIPG Uralsvyazinform OJSC, privileged А2 UNPA UNICOM Partner LLC IC Troika Dialog VIMPG VimpelCom OJSC, ordinary Out of List TROY CJSC VSMPO-AVISMA Corporation OJSC, VSMOG ordinary B BUBS UBS Securities LLC VSMPO-AVISMA Corporation OJSC, VSMOG ordinary B UNPA UNICOM Partner LLC
Dynamics of the Number of Instruments Admitted to Trading on RTS, 2004-2007
Securities December December December December 31, 2004 31, 2005 31, 2006 31, 2007 Shares 236 383 398 413 Bonds 37 20155 152 Investment Units 8 18 22 38 Total 281 421 575 603 Including quotation lists 47 62 79 110
Data for 2001-2004 – NP RTS Data for 2005-2006 – NP RTS and OJSC RTS Data for 2007 – OJSC RTS
32 Fig 1. Dynamics of the Number of Instruments admitted to trading on RTS in 2004-2007 (by types of securities)
700
600 investmnt units bonds 500 shares
400
300
200
100 Number of instruments, items 0 2004 2005 2006 2007
Fig 2. Dynamics of the Number of Instruments admitted to trading on RTS in 2004-2007 (by List Section)
700
600
500
400
300
200
Quotation lists 100 Out of list Number of instruments, items
0 2004 2005 2006 2007
The RTS trading volume leaders in 2007 were Gazprom OJSC ordinary shares (GAZP) with a turnover of 102.1 billion dollars, followed by LUKoil OJSC (LKOH) with a turnover of 46.4 billion dollars and RAO UES of Russia OJSC (EESR) with a turnover of 41.0 billion dollars. The share of these securities in the turnover was 26.19%, 11.90% and 10.51% respectively. 33
RTS Best Sellers in 2007*
Ticker Company Name, Share Type Trading volume, US dollars Percentage, %
GAZP Gazprom OJSC, ordinary 102,103,542,106 26.19%
LKOH LUKoil OJSC, ordinary 46,375,992,195 11.90%
EESR RAO UES of Russia OJSC, ordinary 40,992,669,071 10.51%
GMKN MMC Norilsk Nickel OJSC, ordinary 32,648,498,881 8.37%
SBER Sberbank of Russia OJSC, ordinary 29,311,931,242 7.52%
SNGS Surgutneftegaz OJSC, ordinary 10,918,214,917 2.80%
ROSN Oil Company Rosneft OJSC, ordinary 7,067,934,278 1.81%
RTKM Rostelecom OJSC, ordinary 6,351,134,996 1.63%
OGKE OGK-5 OJSC, ordinary 4,390,697,440 1.13%
MTSS MTS OJSC, ordinary 3,288,375,648 0.84%
* including all types of trades and OTC transactions
RTS Leaders of Price Change
Uralkali OJSC ordinary shares (+406.49%), Raspadskaya OJSC ordinary shares (+252.30%) and Belgorodenergo OJSC ordinary shares (+248.28%) took the lead in the chart of RTS top gainers on the RTS Classic Market in 2007.
Top losers of 2007 were Surgutneftegaz OJSC privileged shares (-42.14%), Chitaenergo OJSC ordinary shares (-38.46%) and URALSIB OJSC ordinary shares (-33.03%).
RTS Top Gainers in 2007 (Classic Market)
Closing Change, Trading Number of Ticker Company Name, Share Type price, % volume, USD transactions USD
URKA Uralkali OJSC, ordinary 7.8 406.49% 101,138,904 734
RASP Raspadskaya OJSC, ordinary 6.5 252.30% 24,366,153 334
BLRS Belgorodenergo OJSC, ordinary 505 248.28% 648,510 27
MTLR Mechel OJSC, ordinary 27 225.30% 9,272,908 129
SILV Silvinit OJSC, ordinary 880 214.29% 9,315,566 153
NKNC Nizhnekamskneftekhim OJSC, ordinary 0.9 190.32% 1,966,063 60
KMAZ KAMAZ OJSC, ordinary 5.45 181.65% 6,913,787 56
VOLGP Volzhskaya Hydropower Plant OJSC, privileged 0.9 181.25% 3,476,162 58 Dagestan Regional Generating Company OJSC, 0.186 177.20% 14,475,746 231 DAGR ordinary
BLRSP Belgorodenergo OJSC, privileged 445 161.76% 825,331 33
34
RTS Top Losers in 2007 (Classic Market)
Closing Trading Number of Ticker Company Name, Share Type Change, % price, USD volume, USD trades
SNGSP Surgutneftegaz OJSC, privileged 0.648 -42.14% 89,530,876 475
CHIE Chitaenergo OJSC, ordinary 0.04 -38.46% 1,251,966 24
USBN URALSIB OJSC, ordinary 0.0219 -33.03% 8,156,518 242
OMZZ OMZ OJSC, ordinary 7.5 -29.45% 2,695,543 13
BISV BashInformSvyaz OJSC, ordinary 0.1615 -29.01% 895,678 24
NKSH Nizhnekamskshina OJSC, ordinary 1.3 -28.77% 1,312,113 71
DGEN Dagenergo OJSC, ordinary 0.0195 -27.78% 1,972,806 62
MFGSP Slavneft-Megionneftegaz OJSC, privileged 21.5 -24.22% 1,874,932 37
UFMO Ufa Engine Industrial Association OJSC, ordinary 1.6 -23.81% 598,173 24
MFGS Slavneft-Megionneftegaz OJSC, ordinary 40 -23.08% 699,564 17
RTS Organized Stock Market Leading Operators in 2007 (Classic and T+0 markets)
In 2007 Troika Dialog Investment Company CJSC remained the trading volume leader, followed by UBS Securities CJSC. Deutsche Securities CJSC took the third position, having left behind Renaissance Broker LLC. METROPOL IFCo LLC is the fifth in the rating.
Rating position: Rating position: Ticker Company name 2007 2006
1 1 TROY IC Troika Dialog CJSC
2 2 BUBS UBS Securities CJSC
3 4 UFGR Deutsche Securities CJSC
4 3 RENC Renaissance Broker LLC
5 10 MTRF METROPOL IFCo LLC
6 6 CITI Commercial Bank Citibank CJSC
7 7 ALFC Alpha-bank OJSC OTKRITIE Brokerage House OJSC
8 23 OPEN Brokerage House OJSC
9 15 CINV CenterInvest Securities LLC
10 14 CITF KIT Finance LLC
11 5 CSFB Credit Suisse Bank (Moscow) CJSC
12 11 MEIN Metallinvestbank AKB OJSC
13 37 BINV Bitza-Invest Investment Company CJSC
14 8 NKOL URALSIB Capital LLC
15 16 UNCR UniCredit Aton CJSC
16 18 CKBN CentroCredit AKB
17 9 ANTC Antanta-Capital LLC 35
18 — RINV IC ROSINVEST LLC
19 20 TIBM TRUST Investment Bank OJSC
20 69 SCNT Vostochnaya Fondovaya Kompaniya CJSC
21 13 PRSP Prospect Investment Company OJSC
22 21 MBWB MDM Bank OJSC
23 32 FINA FINAM CJSC
24 12 EAST EAST COMMERTS Investment group Ltd.
25 24 PSTR Investment Financial Company POLAR STAR CJSC
Main Changes to the List of the RTS Stock Market Participants in the Reporting Year New RTS Stock Market Participants No. Ticker Company Name T+0 Market Classic Market 1 TFBF TFB Finance Investment Company LLC yes Report mode 2 DCCA DC Capital investment Company LLC yes standard 3 RAFB RAF-Broker CJSC yes standard 4 SPCT Spectrum Invest LLC yes standard 5 FINK Fincom LLC yes standard 6 EVER Everest Brokerage Service LLC yes standard 7 VTBB Broker Bank OJSC yes - 8 BBIN BINBANK OJSC yes - 9 IRCE NP Mortgage Settlement Center LLC) yes - 10 NAIN NAINA OJSC yes - 11 PRIO Prioritet Financial Company OJSC yes - 12 SINV SINARA-INVEST LLC yes - 13 SLIB SLAVINVESTBANK LLC yes - Technology Capital Investment Financial 14 TCAP Company LLC yes - 15 TREF Trade Finance LLC yes - 16 IMBD UniCredit CJSC yes - 17 AZMT Azimut-Capital CJSC - standard 18 AIKS Ayaks Capital Investment Company LLC - standard J.P. Morgan Bank International Commercial 19 JPMS Bank LLC - standard 20 CNTF CONTRACTFINANCE CJSC - standard LenMontazhStroy Investment Company 21 ICLM CJSC - standard 22 MPAR Management Partner CJSC - standard 23 MLSE Merrill Lynch Securities LLC - standard RIGroup Finance Investment Financial 24 RIGF Company CJSC - standard 25 UCPT UNIVER Capital LLC - standard
36
THE FORTS DERIVATIVES MARKET
The FORTS Derivatives Market is the key futures and options trading floor in Russia, as well as one of the world’s leading futures and options markets. Currently, on the FORTS market the following instruments are traded: options and futures the underlying assets of which are the RTS Index, sectoral indices, Russian issuers’ shares and bonds, municipal bonds, federal loan bonds, foreign currency, the contract on the ruble overnight credit rate MosIBOR/MosPrime, the contract on the ruble three-monthly credit rate MosPrime and commodities including Urals oil, diesel fuel, gold, silver and sugar.
Important Events
The year 2007 was marked by an event which is important for the whole Russian market – on certain days the trading volumes of derivatives exceeded the trading volumes on the shares market. For example, on December 13, the FORTS trading volume was 5.2 billion dollars.
Last year, the futures contract on the RTS Index became the most liquid instrument of Russia’s stock market. The futures and options trading volume increased nearly sixfold and reached 180.8 billion dollars as compared to 30.9 billion dollars in 2006.
Market Dynamics in 2007
In 2007, the FORTS Derivatives Market trading volume increased nearly threefold (by 177.4% in ruble terms) as compared to the corresponding figures for 2006 and reached its record amount. The number of transactions more than doubled. Since the beginning of 2007, a total of 11.7 million transactions with 144.9 million contracts for a total sum of 7.5 trillion roubles were concluded on FORTS.
The volume of open positions in standard contracts by the end of 2007 amounted to 141.7 billion roubles or 3.2 million contracts. Growth expressed in money terms was 67.4% as compared to 2006. The volume of open positions reached its maximum amount of 181.5 billion roubles on December 14 and last year the average daily volume was 82.6 billion roubles.
The record turnover on FORTS – 126.7 billion roubles or 1.7 million contracts – was registered on December 13, 2007. In comparison with 2006 the average daily number of trades more than doubled to reach 47,110 trades.
The most liquid contract in 2007 was the RTS Index futures (the share of this instruments was 47.7% or 3.6 trillion roubles). The record trading volume in RTS Index futures – 53.2 billion roubles or 462,825 contracts – was achieved on December 13.
The second position was occupied by the futures on RAO UES of Russia shares (13.8%). The share of the futures on RAO UES of Russia shares was 9.5% in 2007.
The most liquid option contracts of the last year were put options on the futures contract on the RTS Index (10.1%). In 2007, the trading volume in the RTS Index futures and options increased nearly sixfold and reached 180.8 billion dollars as compared to 30.9 billion dollars in 2006.
Instruments 37 The range of instruments of the Derivatives market was improved both in terms of their quality and number. A number of contracts increased nearly threefold. At the beginning of 2007, it was possible to make transactions with only 23 instruments, while towards the end of the year, 63 contracts were traded on FORTS, out of which 44 contracts were futures and 19 contracts were options. They included such contracts, which are unique for Russia, as delivery futures on diesel fuel and sugar, options on gold, futures on silver, and derivatives on bonds including Federal loan bonds. RTS has a well-developed derivatives market, represented by the stock, money and commodities sections.
Year Results Total trading volume for the year, 7 513,28 billion roubles Trading volume for futures contracts, billion roubles 6 207,29 Trading volume for options, billion roubles 1 305,98 Number of transactions in the year 11 683 360 Average daily number of 47 110 transactions Average daily trading volume, billion 30,30 roubles Aggregate average daily volume of open positions, billion roubles 165,32 Average daily volume of open positions in futures contracts, billion 73,21 roubles Average daily volume of open positions in options, billion roubles 92,21
FORTS trading volume, billion roubles
2001 7,95 2002 94.87 2003 214,02 2004 337.64 2005 687.06 2006 2708,54 2007 7513,28
FORTS trading volume, million contracts
2001 2,06 2002 22.06 2003 33.76 2004 42.56 2005 53.28 2006 89,64 2007 144,92
38
Number of transactions on FORTS, million transactions
2001 0.05 2002 0.55 2003 0.90 2004 1.52 2005 1.90 2006 5.02 2007 11.68 FORTS trading volume in 2007, billion roubles
January 261,14 February 315,31 March 455,36 April 380,88 May 392,31 June 471.67 July 535.31 August 692.10 September 610.56 October 961,50 November 1249,78 December 1187,36
Trading Volume Dynamics in 2007
1400,00
1200.00
1000.00
800.00
600.00
400.00
200.00
0.00 January February March April May June July August September October November December
Derivative instruments
Total number of derivative instruments 65 Futures contracts 45 Option contracts 20 Those introduced in 2007 40 Futures contracts 29 Option contracts 11 39
Trading Volume of Contracts
Trading Volume No. Contract Name Number of Roubles contracts 1 Futures contract on RTS Index 3,580,908,977,250 34,228,973 2 Futures contract on RAO UES of Russia shares 1,035,055,705,040 30,853,049 3 Futures contract on Gazprom OJSC shares 714,277,406,688 24,601,884 4 Futures contract on Oil Company LUKoil shares 227,550,959,773 10,871,173 Futures contract on Sberbank of Russia ordinary 5 164,261,710,916 1,643,099 shares 6 Futures contract on MMC NORILSK NICKEL shares 146,520,961,388 2,414,838 7 Futures contract on US dollar 118,222,198,335 4,692,186 8 Futures contract on Surgutneftegaz OJSC shares 49,713,135,527 1,593,031 Futures contract on the ruble overnight credit 9 (deposit) rate MosIBOR (Moscow Inter-Bank Offered 45,875,165,086 47,031 Rate) 10 Refined gold bullion futures contracts 29,886,685,475 1,632,410 11 Futures contracts on VTB Bank OJSC ordinary shares 17,843,861,820 1,488,878 Futures contracts on Oil Company Rosneft OJSC 12 12,937,686,316 587,040 shares 13 Futures contract on Rostelecom OJSC shares 7,750,941,701 342,841 14 Futures contract on 10-Year Moscow City Bonds 6,440,817,966 585,878 15 Futures contracts on Urals oil 6,202,755,946 357,145 16 Futures contracts on RAO UES of Russia shares 6,080,124,154 198,870 Futures contract on Federal loan bonds OFZ-PD No. 17 5,836,751,183 571,231 46020 Futures contract on Federal loan bonds OFZ-PD No. 18 4,909,362,363 445,738 46018 19 Futures contract on RTS Index – Oil & Gas 4,457,097,365 345,439 Futures contracts on Sberbank of Russia OJSC 20 3,304,000,728 308,297 common shares Futures contract on Gazprom OJSC bonds of the 8th 21 3,177,632,777 315,275 issue Futures contract on Federal loan bonds OFZ-PD 22 1,763,371,937 176,678 №46021 23 Futures contract on RTS Index – Consumer & Retail 1,757,692,530 100,103 Futures contracts on the Moscow Region Bonds of the 24 1,390,936,015 129,590 6th issue 25 Futures contract on Transneft OJSC preference shares 1,315,791,527 27,614 Futures contract on Russian Railways OJSC Bonds of 26 1,265,877,953 123,002 the 7th issue Futures contract on Federal loan bonds OFZ-PD No. 27 1,138,594,696 114,030 6199 Futures contract on Federal loan bonds OFZ-PD No. 28 1,117,204,075 112,005 25061 Futures contract on FSK EES OJSC Bonds of the 4th 29 1,097,560,850 108,648 issue Futures contract on Russian Railways OJSC Bonds of 30 1,061,826,910 104,443 the 6th issue 40
31 Futures contract on Polyus Gold OJSC ordinary shares 1,036,698,101 94,844 32 Futures contract on MTS OJSC ordinary shares 753,193,385 22,161 Futures contract on diesel fuel L-0.2-62 (All-Union 33 747,040,400 5,107 State Standard 305-82) Futures contract on UralSvyazInform OJSC ordinary 34 680,332,379 426,599 shares 35 Refined silver bullion futures contracts 627,362,987 17,731 Futures contract on granulated sugar, produced in 36 96,082,400 1,222 accordance with All-Union State Standard 21-94 Futures contract on Gazprom OJSC bonds of the 9th 37 86,095,000 8,500 issue 38 Futures contract on NOVATEK OJSC ordinary shares 63,001,778 4,089 Futures contract on the Moscow Region Bonds of the 39 62,025,000 6,000 7th Futures contract on the three-month credit rate 40 10,652,875 591 MosPrime 41 Futures contract on OGK-5 OJSC ordinary shares 4,933,210 1,178 Futures contract on Sberbank of Russia OJSC 42 578,848 80 privileged shares 43 Futures contract on OGK-4 OJSC ordinary shares 316,377 88 44 Futures contract on OGK-3 OJSC ordinary shares 4,050 1 45 Options on RTS Index futures contract 758,702,571,282 7,150,531 46 Options on Gazprom OJSC shares futures contract 225,346,173,000 7,948,651 Options on the futures contract on RAO UES of Russia 47 132,119,956,000 3,981,873 shares 48 Options on the futures contract of LUKoil OJSC shares 74,330,437,000 3,533,317 Options on the futures contract on MMC NORILSK 49 54,642,277,500 851,322 NICKEL shares 50 Put options on Sberbank of Russia OJSC shares 27,864,735,000 282,492 Options on the futures contract on Rostelecom OJSC 51 12,142,494,000 456,153 shares Options on the futures contract on Surgutneftegaz 52 5,689,802,000 178,214 OJSC shares 53 Option on USA dollar futures contract 3,871,275,000 154,196 Options of the futures contract on VTB Bank OJSC 54 2,869,851,000 230,642 ordinary shares Options on the futures contracts on Oil Company 55 2,374,359,000 107,404 Rosneft OJSC shares 56 Options on the refined gold bullion futures contract 2,054,537,215 117,580 Options on the futures contract on RAO UES of Russia 57 1,430,675,000 47,596 shares Options on the futures contract on Sberbank of Russia 58 1,260,562,250 113,752 OJSC ordinary shares Options on the futures contract on MTS OJSC ordinary 59 521,454,000 16,802 shares Options on the futures contract on Transneft OJSC 60 500,630,000 10,429 preferred shares Options on the futures contract on Polyus Gold OJSC 61 242,186,000 20,855 ordinary shares Options on the futures contract on UralSvyazInform 62 20,791,500 12,232 OJSC ordinary shares 41
Options on the futures contract on NOVATEK OJSC 63 28,000 2 ordinary shares Total: 7,513,275,905,826 144,922,653
FORTS: leading operators in 2007
In 2007, the leading operator (taking into account all types of transactions), was KIT Finance LLC., Brokercreditservice LLC came second in the rating, followed by OTKRITIE Brokerage House OJSC and FINAM Investment Company CJSC.
Rating in 2007 RTS Ticker Clearing Member
1 CITF KIT Finance LLC
2 BROK Brokercreditservice LLC
3 OPEN OTKRITIE Brokerage House OJSC
4 FINA FINAM Investment Company CJSC
5 TROY Troika Dialog Investment Company CJSC
6 ALPL ALOR+ LLC
7 ALFC Alpha Bank OJSC
8 ELTR Eltra Investment Company CJSC
9 ITIN IT Invest CJSC
10 SOLD Solid Investment and Financial Company CJSC
11 ZERH Zerich Capital Management Investment Company OJSC
12 OLMA OLMA Investment Firm OJSC
13 UTRD UTRADE.RU OJSC
14 IFGP Universal Investment Company partner LLC
15 RENC Renaissance Broker LLC
16 ATLN Aton LLC
17 MEIN Metallinvestbank Joint Stock Commercial Bank OJSC
18 FORC For a capital Investment Company LLC
19 UBRD The Ural bank for Reconstruction and Development OJSC
20 STAL Steel Invest LLC
21 SVZB Svyaz Bank Joint Stock Commercial Bank OJSC
22 GUTB VTB 24 CJSC
23 TIME Fourth Dimension Investment and Financial Company CJSC
24 BISI INVESTSBERBANK OJSC
25 REBK Region BC LLC
42
RTS START
On January 30, 2007, RTS START, a trading platform for companies with small and medium market capitalization, was launched. The purpose of the project is to encourage admission of securities from issuers with small and medium capitalization to trading during their placement and/or circulation. Alongside with the standard requirements securities traded on RTS START, a segment of the RTS equity market, and their issuers have to meet a number of additional requirements, aimed at protecting investors’ rights and legitimate interests. The issuer’s securities included in the RTS START segment are at the same time admitted to trading on RTS.
RTS START objectives:
• To increase the number of securities traded on the Russian securities market; • To provide dynamic small companies with the opportunity to create and increase capitalization; • To allow capital to be raised for the real sector of economy using the stock market
RTS START Turnover in 2007
ОборотRTS RTS-Start, Start Turnoverusd 1 000 000
900 000
800 000
700 000
600 000
500 000
400 000
300 000
200 000
100 000
0 2007-01 2007-02 2007-03 2007-04 2007-05 2007-06 2007-07 2007-08 2007-09 2007-10 2007-11 2007-12
43 The IPO conducted by ARMADA PJSC in July 2007 can serve as an excellent example of a successful initial placement on RTS START. 80% of the shares were placed through RTS START and in November the company’s shares were transferred from Quotation List I to Quotation List B, while the capitalization rose by more than 134% towards the end of the year as compared to the time of placement.
RTS START is a new trend in the development of the Russian stock market which contributes to creating the class of IPO organizers whose profile is conducting IPOs of companies with small and medium market capitalization. It also gives extra momentum to forming the class of investors who target at investing in securities of small, fast-developing companies.
Creation and development of the RTS START segment will enable Russian companies with limited capitalization to raise necessary investments using foreign financing programs and the stock exchange infrastructure of the securities market.
44
RTS Board
RTS Board is the information system of the Russian Trading System Stock Exchange, which provides indicative quotation of securities not admitted to trading on RTS.
RTS Board was set up in February 2001. Since April 2003, it has been available as a commercial service to companies that do not hold membership in RTS.
In accordance with the Procedure on compiling the RTS Board List of instruments approved by the OJSC RTS Board of Directors, the following instruments may be quoted on RTS Board: • Shares issued in accordance with the requirements of the effective Russian legislature, regulating state registration of the securities issue and the report on the results of the securities issue;
• Bonds issued in accordance with the requirements of the effective Russian law regulating state registration of the securities issue;
• Investment units of mutual investment funds issued by asset management companies in accordance with the requirements of the effective Russian law regulating state registration of asset management principles;
• Securities issued by foreign issuers in accordance with the requirements of the effective Russian law.
Securities included in the RTS Board List of instruments are traded on the OTC market. Quotations for such securities are indicative. The RTS Board List of instruments currently includes over 1600 securities from more than 1200 issuers (asset management companies). Ordinary and privileged shares still remain the key instruments of the RTS Board system.
120 Securities included in RTS Board 100% 100 Securities excluded from RTS Board 90%
80% 80 70% investment units 60% 60 bonds 50% shares
40 40%
30%
20 20%
10%
0 0% Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 2001 2002 2003 2004 2005 2006 2007
Despite the consistent growth of the number of the shares admitted to quotation on RTS Board in the absolute value, their fraction in the RTS Board securities structure continues to decrease, due to the increasing number of new bonds and investment units of mutual investment funds quoted on RTS Board. In 2007, the fraction of shares reduced to nearly 80% in the relative value, while bonds and investment units constituted the remaining 20%. From the issuers’ perspective, RTS Board is a simple and effective instrument for initial increase of the securities’ liquidity, which aims to draw the investors’ attention to promising securities.
800 16 60
Volume of agreements made 55 700 via EDC, USD million 14 45
50 600 Number of agreements made 12 via EDC, thousand items 45 500 10 40
400 8 35
300 6 30
25 200 4 20 100 2
Volume of agreements made via EDC,USD million million EDC,USD via made agreements of Volume 15
0 0 USD EDC, made via of agreements volume Average thousand 10 2001 2002 2003 2004 2005 2006 2007 2001 2002 2003 2004 2005 2006 2007
Therefore, issuers are enabled to introduce their securities to the professional investment community with the aim of further marketing and admission to RTS exchange trading, including the RTS START trading platform for small- and medium-cap companies. In 2007, 604 securities from 467 issuers (asset management companies) were added to RTS Board, out of which 18 shares from 14 issuers joined RTS Board within the framework of the Cooperation Agreement for Development of the Financial and Stock Market between OJSC RTS and the Krasnodar Territory Administration. 61 securities from 50 issuers were transferred from the RTS Board to basic RTS trading on the Classic and T+0 Markets, including: Shares from 5 issuers included into the RTS Quotation Lists;
Shares from 4 issuers included in the RTS START Segment, RTS trading floor for small- and medium-cap companies;
3 IPOs.
Any company licensed as a professional securities market participant may acquire membership in RTS Board. RTS trading members are automatically granted membership in RTS Board. RTS Board provides its members with the following opportunities:
• Entering and reviewing indicative quotations for securities on the RTS Board instruments list;
• Click function for quotations;
• Search engine for information on securities and members;
• On-line communication with traders.
The following functions may be connected additionally:
• Electronic Document Circulation allowing the user to conclude sale and purchase agreements on-line using the electronic digital signature;
• DVP settlements in roubles and foreign currency;
• Access to the RTS Classic and T+0 Markets in the viewing mode.
Over 270 participants, including representatives of leading banks and investment companies, have access to RTS Board.
46
The total volume of agreements executed via the Electronic Documents Circulation using the RTS Board data reached 752 million dollars, 38% up on 2006. The participants’ activity rose by 5% from 13.5 to 14.3 thousand agreements executed via the Electronic Documents Circulation using the RTS Board data. The average volume of an agreement executed via the Electronic Documents Circulation using the RTS Board data exceeded 54 thousand dollars, which is 35% more than that in 2006.
RTS Board Instruments Factors Shares Bonds Units Total Instruments added in 2007 366 207 31 604 Issuers added (asset management companies) in 2007 283 169 19 467 Instruments excluded in 2007 107 46 1 154 Issuers excluded (asset management companies) in 2007 (including transfers to RTS exchange trading) 82 37 1 120 Number of Instruments as of December 31st, 2007 1310 263 31 1604 Number of Issuers (asset management companies) as of December 31st, 2007 1007 200 19 1217 Growth in the number of instruments in 2007, items 254 158 29 441 Growth in the number of instruments in 2007, % 24% 150% 1450% 38%
47
DEPOSITORY SERVICES
CJSC “Depository Clearing Company” (CJSC DCC), part of the RTS Group, is one of the key elements of the Russian securities market infrastructure and the leading Russian settlement depository. At the beginning of 2008, the aggregate value of assets accrued in DCC accounts equaled 124.1 billion dollars.
Ownership Structure
At present DCC shareholders are:
Company Name Shares, total 1. OJSC “Russian Trading System” Stock Exchange” 56.521 % 2. Not-for-Profit Partnership “National Depository Center” 36.957 % 3. ZAO AKIB Zerich Bank 2.174 % 4. ZAO Capital Regent Securities 2.174 % 5. AOZT Navigator Capital 2.174 %
CJSC DCC was established in October 1993 to provide depository services. In 1996 the company obtained a license to conduct depository and clearing activities as a clearing and depository organization. Currently the Company’s major activities include the following services:
• Record and custody services; • Clearing and settlement on the equity market; • Corporate actions assistance.
DCC holds in custody mainly corporate shares and bonds. Since 2003 the company has been working with investment units of mutual investment funds, and since 2006 – with eurobonds, American and global depository receipts.
The DCC provides its services to about 400 companies, including such major professional market participants as Alpha-Bank OJSC, Antanta-Capital LLC, Aton LLC, Renaissance Broker LLC and Troika Dialog CJSC.
48
DCC Main Results in 2007
Client base (as of the end of the year) Total number of depositors 409 New depositors 38 Assets in custody (as of the end of the year) Issues of Securities held in custody items 4,017 Securities held in custody (appraised value 1) billion dollars 124.1 Securities held in custody (par value) billion dollars 281.5 Number of issuers with securities held in custody - 2,588 Share of bonds in the total volume of assets held in custody (par value) % 22 Corporate actions Income disbursed Volume of disbursement billion dollars 1.22 The number of issuers to disburse income 950 Number of income 3,296 placements with DCC Number of disbursements 21,981 Ownership confirmation requests items 4,733 Clearance and settlement Free delivery Volume of transactions billion dollars 193.7 Number of transactions items 105,256 Delivery-versus-payment Volume of transactions billion dollars 35.1 Number of transactions items 94,285 Guaranteed delivery Volume of transactions billion dollars 0.4 Number of transactions items 688 External operations Withdrawal Volume of transactions billion dollars 37.7 Number of transactions items 25,832 Depositing Volume of transactions billion dollars 53.3 Number of transactions items 134,413 DCC-NDC bridge Volume of transactions billion dollars 53.6 Number of transactions items 27,104 Financial Indicators Assets Thousand 803,482 roubles Less securities income to be disbursed to clients Thousand 396,860 roubles Capital and reserves Thousand 295,133 roubles Net profit Thousand 55,993 roubles 49
Equity capital 2 Thousand 273,188 roubles
1 The Appraised value is calculated based on the RTS Stock Exchange and Moscow Interbank Currency Exchange data in accordance with Decree of the Federal Commission for the Securities Market No. 03-52//ps dd. December 24, 2003. In absence of a market value, an appraised value is calculated according to the following procedure: for shares and units of investment unit funds, the appraised value is equal to a weighted average price, in the event that there is no weighted average price, it shall be equal to the price of the best share purchase request. For bonds, the appraised value is equal to the par value. 2 Decree of the Federal Commission for the Securities Market No. 03-22/ps dd. April 23, 2003.
50
SKRIN SERVICES
The SKRIN Agency was founded by the National Association of Securities Market Participants (NAUFOR) in April 1999 in order to create a publicly accessible facility for disclosure of information on Russian enterprises. The NP RTS owns 25% of CJSC SKRIN.
On December 29, 2007, OJSC RTS and CJSC SKRIN entered into a Cooperation Agreement for prospective collaboration in disclosure of information by issuers, joint stock investment funds and asset management companies of mutual investment funds in the SKRIN newsfeed in accordance with federal law and other regulatory acts governing the securities market and investment funds.
The procedure on information disclosure by issuers in the SKRIN newsfeed is determined by the Regulation, which is an appendix to the Information Disclosure Agreement concluded on February 16, 2007 between CJSC SKRIN and the Federal Financial Markets Service of Russia.
The responsibility to disclose information in the newsfeed of authorized information agencies is set out by the Regulation on Information Disclosure by Issuers of Equity Securities (approved by FFMS Order No.06-117 as of October 10, 2006, effective from February 2, 2007) and the Regulation on Requirements for the Procedure and the Term for Disclosure of Information Connected with the Activities of Joint Stock Investment Funds and Asset Management Companies of Mutual Investment Funds (approved by FFMS Order No.05-23 as of June 22, 2005). 51 RTS MONEY
RTS Money is a section of the inter-bank currency market that combines liquidity maintained by market-makers and settlement guarantees provided by NCO “RTS Settlement Chamber” with cutting edge technologies of electronic trading.
Participants of RTS Money may perform conversions using the bilateral negotiation system with digital signature installed or via the electronic trading system and settle trades concluded both on the inter-bank market directly and through brokerage firms in the RTS Settlement Chamber. Credit organizations, non-resident banks as well as legal entities may participate in trading on RTS Money. In 2007, the volume of trading stood at 8.9 billion roubles and the number of active participants reached 28.
2007 saw development of the new technological platform for the RTS Money trading system on the basis of the Plaza II technology completed. This allowed a significant reduction of maintenance costs and better quality services.
The update of the RTS Money trading system scheduled for 2008 will result in a wider range of instruments offered to the participants and new operational schemes enabling the participants to efficiently manage currency liquidity and to make better use of their currency assets in the RTS Group.
52
Clearing Services CJSC “RTS Clearing Center”
Clearing on the FORTS derivatives market is performed by CJSC “RTS Clearing Center”, while on the equity market clearing is carried out by NP RTS.
CJSC “RTS Clearing Center” previously known as CJSC “RTS Technical Center” was set up in October 1995 in order to develop RTS trading and settlement systems and provide technical services to RTS members. RTS Clearing Center is a 100% subsidiary company of OJSC “Russian Trading System” Stock Exchange” and is part of the RTS Group.
The RTS Clearing Center has been operating on FORTS, RTS derivatives market, since 2001 and is now one of the most capitalized clearing companies in Russia. The RTS Clearing Center performs centralized clearing of derivatives trades and is responsible for their settlement. Since the moment of its implementation the risk management system of the RTS Clearing Center has recurrently proved reliable under pressure of highly volatile Russian stock market and the significant open interest.
The RTS Clearing Center provides many guarantees for transaction participants, which is much owed to the progressive system of forming the guarantee fund.
Guarantee Fund IM Funds of Market Participants
Contingency Fund Additional Fund
Compulsory Assessments Fund Reserve Fund
By the end of 2007, the amount of guarantee funds including reserved Initial Margin funds totaled 18 billion roubles.
In 2007, there were a number of important events in clearing on the Derivatives Market. Several commodity futures contracts were launched, the regulatory documents and rules governing delivery and settlement of commodity futures contracts were worked out 53 The first deliveries were conducted successfully: • of the diesel fuel futures contract; • of the sugar futures contract.
In May a new system was launched for calculating the Initial Margin taking into account the risks of the whole portfolio of a participant.
Previously the participants trading in futures and options deposited from 3% to 15% of the contract’s value as initial margin. The system was developed back in 2001 and had a number of limitations. However, over the years not only the volumes of the RTS Derivatives Market have grown, the range of instruments was also extended. In some cases brokers had to deposit more funds than the actual risks demanded. If a trader buys an option at a price lower than the current price of a futures contract serving as the option’s underlying asset and, at the same time sells the futures, the risks will be hedged and, therefore, there will be no need for additional collateral. The new system was developed with regard to these nuances and allows for the portfolio risks to be calculated before the initial margin is determined. The participants got an opportunity not to deposit initial margin on risk-free positions. The efficiency of complex positions was also increased, while the cost of their funding was reduced. For some futures and options positions implementation of the new system for calculating of the initial margin resulted in up to tenfold reduction of the funding costs. With the new system in operation discount deposits for inter-contract spreads became possible. Therefore, the trading participants are now able to reap more benefit from arbitrage and the system for calculation of the initial margin is now twice as fast.
In August the intraday clearing session was introduced. RTS is the first Russian exchange to implement intraday clearing, a technology widely used on western derivatives trading floors.
The new service has sped up the settlement process between the RTS Clearing Center and the Clearing Members, it has increased the reliability of the clearing system, minimized the risks born by the Clearing Members providing services to the clients trading on the Derivatives Market and raised the efficiency of trading operations in futures and options, due to the reduced cost of funding.
With the implementation of the intraday clearing, profit gained in the form of variation margin by futures and options market participants will be credited not only after the evening clearing session, but also in the middle of a trading day.
The introduction of intraday clearing has also allowed the size of the initial margin on some contracts to be reduced by up to 30%. For example, the initial margin on the most liquid instrument on the Russian stock market, RTS Index futures, was reduced from 10% to 7.5%.
In December, changes to the delivery procedure for futures contracts were adopted. These changes were brought about by the necessity of raising the guarantees of conducting delivery settlements.
The new delivery procedure provides for settlement of futures contracts in two stages. During the second stage, contracts that were not exercised during the first stage are settled. Cash and securities allocated for delivery settlement on positions that were not exercised during the first stage will remain reserved till the second stage, while the initial margin funds on positions secured by assets will become available. 54 For inappropriate fulfillment or non-fulfillment of obligations under contracts, a penalty will be withheld from the Clearing Member: • For inappropriate fulfillment of obligations during the first stage of delivery a penalty of 0.5 percent of the amount of the delivery obligations will be withheld for the delay in fulfillment; • For non-fulfillment of obligations during the second stage of delivery a penalty equal to the amount of the initial margin on non-fulfilled contracts will be withheld.
In 2007, the guarantee system for fulfillment of obligations on the Derivatives Market was further reinforced, one of the reasons for this being the growth of the Reserve Fund. Over the year the Reserve Fund of the Derivatives market was increased twice: On May 18, 2007 – to 350 million roubles and on August 6, 2007 – to 450 million roubles.
55
Clearing Services NP RTS Clearing on the spot market is performed by the NP RTS, most capitalized company of the Group. The most significant event in development of the clearing on the spot market in 2007 was the introduction (September 17, 2007) of centralized clearing for trades executed in the electronic trading mode and trades with full preliminary depositing of assets.
Taking into account the requests of the market participants and with regard to the world’s best practice, RTS developed the central counterparty technology and was the first Russian exchange to implement it on The Classic Market. The Not-for-Profit Partnership “Russian Trading System” Stock Exchange” performing the functions of a clearing center on the spot market acts as a party to all trades executed in this trading mode, i.e. acting as a buyer for the market participants which submit sell orders and acting as a seller for the market participants which submit buy orders. All trades are settled between the trading participant (their client) and the NP RTS, including withholding penalties for delayed fulfillment (non-fulfillment) of obligations.
Prior to the implementation of the central counterparty technology parties to the trade executed in the anonymous mode were disclosed to one another in order to settle the trade. In this case for connection to this trading mode the participants were required to adopt their own procedures to ensure compliance with the terms and conditions of the Anti-Money Laundering (AML) and Know Your Customer (KYC) policies. If a participant failed to carry out these procedures for at least one of the prospective counterparties, such participant “did not enter trading”. This restricted the further growth of the number of Electronic Trading participants. In case of the central counterparty acting as a party to all trades, the participant connecting to the Electronic Trading, has to check only the clearing center for compliance with the requirements of the AML/KYC policies, which leads to a faster “entry to trading”.
Since the introduction of the central counterparty, three new market participants have connected to the Electronic Trading.
Previously transactions in the Electronic Trading could be executed only on behalf of and at the expense of non-resident clients. Introducing of the central counterparty in Electronic Trading provided the opportunity of concluding trades on behalf of and at the expense of a market participant, on behalf of a market participant and at the expense of a client (both resident and non-resident) and on behalf of and at the expense of a resident client. Furthermore, settlement between the clearing center and non-residents is performed in US dollars, while settlement between the clearing center and residents is performed in Russian roubles.
Settlement via the central counterparty also allowed trades to be concluded between clients of one broker acting on the basis of a commission agreement, which was previously not permitted on the Classic Market.
Settlement via the central counterparty lead to the reduction of expenses on conducting cash operations, due to the introduced netting of a participant’s cash obligations within a clearing session held by the Depository Clearing Company.
Due to the introduction of centralized clearing, the Guarantee Fund for Electronic Trading was increased to 260 million roubles. 56 A new report system was developed and put into operation at the clearing center of NP RTS: all client reports are now distributed in text format (XML format) allowing reports to be processed automatically. Reports may be viewed and printed as a table using any Internet browser.
57
RTS SETTLEMENT CHAMBER
NCO “RTS Settlement Chamber” (RTS Settlement Chamber) is a non-banking credit organization that performs cash settlement on the stock market as well as on other segments of the financial market.
The main functions of the RTS Settlement Chamber are maintenance of accounts opened by RTS clients to work on the Classic and T+0 Markets, FORTS, RTS derivatives section, and RTS Money as well as settlement of trades executed in the free and federal sectors of the wholesale power market.
In particular, the RTS Settlement Chamber conducts bank operations in roubles and foreign currency: it opens and maintains bank accounts of legal entities, performs settlement on behalf of legal entities, including correspondent banks, buys and sells foreign currency in the non-cash form.
The high speed at which client operations are completed by the RTS Settlement Chamber is ensured by the system of remote access”bank-client”. Information security of the RTS Electronic Document Circulation is guaranteed by the certified Verba-O encryption algorithms, which is a certified software product.
In 2007, a lot of efforts were undertaken to improve the quality of client service, to minimize operational risks and also to modify technology in order to keep in line with amendments to Russian legislation.
In particular this included:
- Implementation of the technology for settlement of DVP trades using the Consolidated Clearing Account; - Implementation of the automatical conversion technology allowing resident clients to settle DVP trades in US dollars; - Switch to a new version of bank software, due to the coming into force of the new regulation No.302-П On Accounting Rules for Credit Organizations Situated on the Territory of the Russian Federation; - Switch to the new version of the Diasoft Online 5NT, a remote client service system; - Implementation of a management system for the correspondent account at Sberbank of Russia, intended to back up the existing SWIFT systems; - Development of the on-line Electronic Document Circulation system allowing the RTS Settlement Chamber and the tax authorities to exchange encrypted information; - Further cooperation with the RTS experts in implementation of the new settlement technologies with regard to the new services provided on the stock market;
By the end of 2007, the number of accounts opened with the RTS Settlement Chamber grew by 10% - from 1,357 as of the end of 2006 to 1,497 as of the end of 2007.
The total balance on client accounts opened with the RTS Settlement Chamber in 2007 decreased slightly – from 9.7 to 9.4 billion roubles respectively.
The year 2007 saw a considerable growth of the financial indicators of the RTS Settlement Chamber: the company’s equity capital grew by 99% in comparison with that of 2006 - from 411 to 818 million roubles, of which 150 million roubles were subordinated credit received from the NP 58 RTS. Commission for settlement services was increased by 86% with the profit growing by almost 67%. While in 2006, the profit totaled 195 million roubles, in 2007 it exceeded 325 million roubles. 59
INFORMATION TECHNOLOGIES AND SOFTWARE
In 2007, RTS actively worked on upgrading its technological software. A lot of efforts were undertaken to update the trading and clearing systems of the FORTS market within the project on development of the functionality and enhancement of the efficiency and reliability of the FORTS trading and settlement complex. Realization of one of the main projects, implementation of the new technology and algorithm for the initial margin calculation allowed for a more accurate evaluation of portfolio risks and resulted in the increased efficiency of the system. A new system for distributing market data was launched, and a new product could be offered to the participants – a FORTS access server, which significantly reduces the volume of data received from the trading system by participants with a large number of trade terminals and clients. Last year, the intraday clearing technology was implemented on FORTS, which reduced the size of the initial margin on futures and options by 30-50% and also increased the guarantee level. All of these projects were carried out by the RTS specialists using Plaza II, the new software platform for designing trading and clearing systems, which began to be developed in 2005. This platform is a set of special components (modules), which provide a message transfer environment and work with databases and supporting services for designing software that directly performs the function of a business-logics application. Further proof of the maturity of the Plaza II platform was the completion of work on transferring a service as significant as the Electronic Document Circulation (EDC) System to the platform and the start of work to install the EDC system updates at the stock exchange and at the market participants’ end. On the basis of one of these EDC system applications, in accordance with requirements of the Federal Financial Market Service in order to report over-the-counter transactions on the stock exchange, a special service was developed for market participants, which allows transaction reports to be accepted from participants practically in real time.
Last year a lot of efforts were undertaken to develop the RTS IT infrastructure, particularly:
1. A backup center for processing stock exchange data developed and put into operation. 2. A private fiber-optic communication line connecting the main data processing center and the point for traffic exchange with providers.
Realization of these projects significantly increased the reliability and capacity of the RTS IT- infrastructure. 60
APPENDICES
61
MEMBERS OF THE BOARD OF DIRECTORS
Members of the Board of Directors of OJSC RTS:
1. Full name: Jacques Der Megreditchian Date of birth: October 22, 1959 Education details: European Business Institute, 1984, Master of Economics; French Center for Financial Analysis , 1987, Financial Management Position: Chairman of the Board of Directors Period: 2000 – Present Company name: Investment Company Troika Dialog CJSC Position: Managing Director, Head of Investment Banking & Global Markets
2. Full name: Andrey Yurievich Babenko Date of birth: September 21, 1966 Education details: Sergo Ordzhonikidze Moscow Aviation Institute, 1989, Radio Engineering Position: Member of the Board of Directors Period: 2001–2003 Company name: Bank Trust Position: Head of Structured Products Period: 2003-2006 Company name: Investment Company Antanta Capital Position: Director General Period: 2006 – Present Company name: Investment Group Otkrytye LLC Position: Senior Managing Director
3. Full name: Alexander Naumovich Pertsovsky Date of birth: September 2, 1968 Education details: Moscow State Institute of Radio Engineering, Electronics and Automation, 1991, Engineer and Mathematician Position: Member of the Board of Directors Period: 2000-2004 Company name: Auerbach Grayson, New York Position: Vice-President, Russian Investments Period: 2004 - Present Company name: Renaissance Broker LLC Position: Consultant
4. Full name: Oleg Petrovich Safonov Date of birth: May 26, 1969 Education details: State Finance Academy, 1991, Finance and Credit, Economist Position: Member of the Board of Directors Period: 1998–2001 Company name: Commercial Bank ORGRES Bank LLC 62 Position: Vice Chairman of the Board Period: 2001-2001 Company name: Commercial Bank Investment and Settlement Bank LLC Position: Chairman of the Board Period: 2001-2003 Company name: Krasnoyarsky Shareholder Commercial Bank (KRASTORG Bank OJSC) Position: Councilor of the Chairman of the Board Period: 2003-2004 Company name: NP RTS Stock Exchange Position: Head of Financial Department Period: 2004-2004 Company name: Moscow Inter-Bank Currency Exchange Position: Councilor of General Director Period: 2004-2004 Company name: NP RTS Stock Exchange Position: Head of Financial Department Period: 2004 - 2007 Company name: Not-for-profit Partnership Russian Trading System Stock Exchange Position: President Company name: Russian Trading System Stock Exchange Open Joint Stock Company Position: Chairman of the Board
5. Full name: Anatoly Grigorievich Gavrilenko Date of birth: July 20, 1946 Education details: Foreign Trade Academy, 1984, Foreign Economic Relations Position: Member of the Board of Directors Period: 1999 - Present Company name: ALOR INVEST CJSC Position: Chairman of the Board of Directors
6. Full name: Dominic Paul Gualtieri Date of birth: March 12, 1966 Education details: University of Toronto, 1993, Master of Economics Position: Member of the Board of Directors Period: 1999-2000 Company name: Franklin Templeton Group, South Africa Position: Managing Director Period: 2000 - Present Company name: Alpha Bank OJSC Position: Head of Securities Market Management
7. Full name: Alexander Vladimirovich Kandel Date of birth: October 14, 1971 Education details: Moscow Engineering and Physics Institute, 1994, Engineer and Physicist 63 Position: Member of the Board of Directors Period: 1995-2003 Company name: ATON LLC Position: Financial Director Period: 2003-2005 Company name: ATON LLC Position: General Director Period: 2005 - Present Company name: ATON Broker CJSC Position: General Director
8. Full name: Sergey Aleksandrovich Zharov Date of birth: December 8, 1975 Education details: St. Petersburg State University of Economics and Finance, 1997, Finance and Credit Position: Member of the Board of Directors Period: 2002-2003 Company name: Web Invest Bank CJSC Position: Senior Trader of Retail Operations Department Period: 2003-2005 Company name: KIT Finance Investment Bank OJSC Position: Director of Retail Operations Department Period: 2005-2007 Company name: KIT Finance Investment Bank OJSC Position: Capital Market Director Period: 2003-2003 Company name: NP RTS Stock Exchange Position: Technical Director of the Technical Department Period: 2007- Present Company name: KIT Finance Investment Bank OJSC (Moscow Branch) Position: Director for Capital Market Operations
9. Full name: Marlen Jeraldovich Manasov Date of birth: September 20, 1965 Education details: Lomonosov Moscow State University 1990, Political Economy Position: Member of the Board of Directors Period: 1997 - Present Company name: Brunswick UBS CJSC Position: General Director
10. Full name: Viktor Vasilievich Nikolaev Date of birth: April 11, 1941 Education details: Leningrad Financial and Economics Institute, 1978, Economics and Material Planning Position: Member of the Board of Directors Period: 1997 - Present 64 Company name: NP St. Petersburg Stock Exchange Position: President Company name: St. Petersburg Exchange CJSC Position: General Director, Chairman of the Board (held simultaneously)
11. Full name: Ivan Aleksandrovich Tyryshkin Date of birth: August 9, 1973 Education details: Plekhanov Russian Economics Academy, 1995, Finance and Credit Position: Member of the Board of Directors Period: 1998-2001 Company name: Self-governed Organization National Association of Securities Market Participants Position: Chairman of the Board Period: 2001-2003 Company name: NP RTS Stock Exchange Position: President Period: 2003-2004 Company name: Russkoe Zerno LLC Position: President Period: 2004-2006. Company name: Joint Financial Group CJSC Position: Senior Executive Director Period: 2006 - Present Company name: Aton Line LLC Position: General Director
12. Full name: Oleg Evgenievich Yachnik Date of birth: August 2, 1951 Education details: Bauman Moscow Higher Technical School, 1974, Applied Physics Position: Member of the Board of Directors Period: 1994 - Present Company name: OLMA Investment Company OJSC Position: General Director Company name: OLMA Holding CJSC Position: General Director (held simultaneously)
13. Full name: Evgeny Borisovich Kogan Date of birth: August 28, 1965 Education details: Moscow Financial Institute (State Finance Academy) 1987, Accounting and Company Auditing Position: Member of the Board of Directors Period: 2002-2003 Company name: Center Invest Securities LLC Position: Director of Securities Department Period: 2003-2006 Company name: Antanta Capital LLC Position: Executive Director 65 Period: 2006 - Present Company name: Antanta Capital LLC Position: General Director
14. Full name: Sergey Vladimirovich Marinich Date of birth: August 10, 1964 Education details: Lomonosov Moscow State University, 1986, Law Position: Member of the Board of Directors Period: 2002-2006 Company name: Falans Legal Office Position: Lawyer Period: 2006 – Present Company name: Marinicha Legal Office Position: Lawyer
15. Full name: Vladimir Nikolaevich Melentiev Date of birth: November 8, 1958 Education details: Turkmen Polytechnic Institute, 1986, Engineer and Designer Position: Member of the Board of Directors Period: 2002 – Present Company name: Joint Stock Bank Gazprombank CJSC Position: Head of the Marketing and Planning Department of the Depository Center
16. Full name: Dmitry Nikolaevich Snesar Date of birth: March 3, 1972 Education details: Plekhanov Russian Economics Academy, Accountancy Position: Member of the Board of Directors Period: 2000-2005 Company name: Joint Financial Group CJSC Position: Financial Director
17. Full name: Aleksey Viktorovich Timofeev Date of birth: March 3, 1972 Education details: Ural State Law Academy, 1994, Law Position: Member of the Board of Directors Period: 1998-2005 Company name: Stock Market Development Center Position: Technical Adviser on Legal Matters Period: 2005 – Present Company name: Self-governed Organization NAUFOR Position: Chairman of the Board 66 Non-arm’s Length Transactions
A list of transactions conducted by the Organization during the reporting year that are recognized as non- arm’s length transactions in accordance with the Federal Act On Joint Stock Companies.
In 2007 non-arm’s length transactions were conducted during placement of further issue shares:
1. Transaction type: non-arm’s length transaction; Date transaction conducted: January 31, 2007. Full company name of the legal entity that originally owned securities placed by the transaction: ALOR INVEST Closed Joint Stock Company. Short company name of the legal entity that originally owned securities placed by the transaction: ALOR INVEST CJSC. Address of the legal entity that originally owned securities placed by the transaction: Bldg 1, 26a Myasnitskaya Street, Moscow, 101000. Number of securities placed by the transaction: 16,000.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Anatoly Grigorievich Gavrilenko Reason why this individual was an interested party in the transaction: Anatoly Grigorievich Gavrilenko is a member of the Board of Directors or OJSC RTS and is also the Chairman of the Board of Directors of ALOR INVEST CJSC.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes dd. April 24, 2007).
2. Transaction type: non-arm’s length transaction; Date transaction conducted: 06.03.2007 Full company name of the legal entity that originally owned securities placed by the transaction: ALOR INVEST Closed Joint Stock Company. Short company name of the legal entity that originally owned securities placed by the transaction: ALOR INVEST CJSC. Address of the legal entity that originally owned securities placed by the transaction: Bldg 1, 26a Myasnitskaya Street, Moscow, 101000. Number of securities placed by the transaction: 1,023.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Anatoly Grigorievich Gavrilenko Reason why this individual was an interested party in the transaction: Anatoly Grigorievich Gavrilenko is a member of the Board of Directors or OJSC RTS and is also the Chairman of the Board of Directors of ALOR INVEST CJSC.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on 67 approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes dd. April 24, 2007).
3. Transaction type: non-arm’s length transaction; Date transaction conducted: January 30, 2007. Full company name of the legal entity that originally owned securities placed by the transaction: UBS Securities Closed Joint Stock Company. Short company name of the legal entity that originally owned securities placed by the transaction: UBS Securities CJSC. Address of the legal entity that originally owned securities placed by the transaction: 2/2, Paveletskaya Square, Moscow, 115054. Number of securities placed by the transaction: 25,432.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Marlen Jeraldovich Manasov. Reason why this individual was an interested party in the transaction: Marlen Jeraldovich Manasov is a member of the Board of Directors of OJSC RTS and is also the sole executive body of UBS Securities CJSC.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes dd. April 24, 2007).
4. Transaction type: non-arm’s length transaction; Date transaction conducted: March 6, 2007. Full company name of the legal entity that originally owned securities placed by the transaction: UBS Securities Closed Joint Stock Company. Short company name of the legal entity that originally owned securities placed by the transaction: UBS Securities CJSC. Address of the legal entity that originally owned securities placed by the transaction: 2/2, Paveletskaya Square, Moscow, 115054. Number of securities placed by the transaction: 1,023.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Marlen Jeraldovich Manasov. Reason why this individual was an interested party in the transaction: Marlen Jeraldovich Manasov is a member of the Board of Directors of OJSC RTS and is also the sole executive body of UBS Securities CJSC.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes dd. April 24, 2007).
5. Transaction type: non-arm’s length transaction; 68 Date transaction conducted: January 29, 2007 Full company name of the legal entity that originally owned securities placed by the transaction: ATON Limited Liability Company Full company name of the legal entity that originally owned securities placed by the transaction: ATON LLC Address of the legal entity that originally owned securities placed by the transaction: Bldg 6, 27 Pokrovka Street, Moscow, 105062 Number of securities placed by the transaction: 78,016.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Ivan Aleksandrovich Tyryshkin Reason why this individual was an interested party in the transaction: Ivan Aleksandrovih Tyryshkin is a member of the Board of Directors of OJSC RTS and is also the sole executive body of ATON LLC.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes dd. April 24, 2007).
6. Transaction type: non-arm’s length transaction; Date transaction conducted: March 6, 2007. Full company name of the legal entity that originally owned securities placed by the transaction: ATON Limited Liability Company Short company name of the legal entity that originally owned securities placed by the transaction: ATON LLC Address of the legal entity that originally owned securities placed by the transaction: Bldg 6, 27 Pokrovka Street, Moscow, 105062 Number of securities placed by the transaction: 1,023.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Ivan Aleksandrovich Tyryshkin Reason why this individual was an interested party in the transaction: Ivan Aleksandrovih Tyryshkin is a member of the Board of Directors of OJSC RTS and is also the sole executive body of ATON LLC.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes dd. April 24, 2007).
7. Transaction type: non-arm’s length transaction; Date transaction conducted: February 5, 2007 Full company name of the legal entity that originally owned securities placed by the transaction: OLMA Investment Firm Open Joint Stock Company. Short company name of the legal entity that originally owned securities placed by the transaction: OLMA OJSC. Address of the legal entity that originally owned securities placed by the transaction: Bldg 1, Maly Karetny Lane, Moscow, 127051. 69 Number of securities placed by the transaction: 34,388.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Oleg Evgenievich Yachnik. Reason why this individual was an interested party in the transaction: Oleg Evgenievich Yachnik is a member of the Board of Directors of OJSC RTS at the same time being CEO and a member of the Board of Directors of OLMA OJSC.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes dd. April 24, 2007).
8. Transaction type: non-arm’s length transaction; Date transaction conducted: March 6, 2007. Full company name of the legal entity that originally owned securities placed by the transaction: OLMA Investment Firm Open Joint Stock Company. Short company name of the legal entity that originally owned securities placed by the transaction: OLMA OJSC. Address of the legal entity that originally owned securities placed by the transaction: Bldg 1, Maly Karetny Lane, Moscow, 127051. Number of securities placed by the transaction: 1,023.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Oleg Evgenievich Yachnik. Reason why this individual was an interested party in the transaction: Oleg Evgenievich Yachnik is a member of the Board of Directors of OJSC RTS at the same time being CEO and a member of the Board of Directors of OLMA OJSC.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes dd. April 24, 2007).
9. Transaction type: non-arm’s length transaction; Date transaction conducted: February 5, 2007 Full name of the individual who originally owned securities placed by the transaction: Oleg Petrovich Safonov. Number of securities placed by the transaction: 7,211.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Oleg Petrovich Safonov. Reason why this individual was an interested party in the transaction: Oleg Petrovich Safonov is the sole executive body and member of the Board of Directors of OJSC RTS.
70 Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes dd. April 24, 2007).
10. Transaction type: non-arm’s length transaction; Date transaction conducted: February 7, 2007. Full name of the individual who originally owned securities placed by the transaction: Oleg Petrovich Safonov. Number of securities placed by the transaction: 16,789.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Oleg Petrovich Safonov. Reason why this individual was an interested party in the transaction: Oleg Petrovich Safonov is the sole executive body and a member of the Board of Directors of OJSC RTS.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes dd. April 24, 2007).
11. Transaction type: non-arm’s length transaction; Date transaction conducted: March 5, 2007 Full name of the individual who originally owned securities placed by the transaction: Oleg Petrovich Safonov. Number of securities placed by the transaction: 1023.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Oleg Petrovich Safonov. Reason why this individual was an interested party in the transaction: Oleg Petrovich Safonov is the sole executive body and a member of the Board of Directors of OJSC RTS.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes dd. April 24, 2007).
12. Transaction type: non-arm’s length transaction; Date transaction conducted: February 2, 2007 Full name of the individual who originally owned securities placed by the transaction: Dmitry Aleksandrovich Shatsky. Number of securities placed by the transaction: 4,800.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Dmitry Aleksandrovich Shatsky. 71 Reason why this individual was an interested party in the transaction: Dmitry Aleksandrovich Shatsky is a member of the Executive Board of OJSC RTS.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes No.07-13-1304 dd. April 13, 2007).
13. Transaction type: non-arm’s length transaction; Date transaction conducted: March 5, 2007 Full name of the individual who originally owned securities placed by the transaction: Dmitry Aleksandrovich Shatsky. Number of securities placed by the transaction: 1,023.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Dmitry Aleksandrovich Shatsky . Reason why this individual was an interested party in the transaction: Dmitry Aleksandrovich Shatsky is a member of the Executive Board of OJSC RTS.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes No.07-13-1304 dd. April 13, 2007).
14. Transaction type: non-arm’s length transaction; Date transaction conducted: February 5, 2007 Full name of the individual who originally owned securities placed by the transaction: Roman Yurievich Goryunov. Number of securities placed by the transaction: 6,400.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Roman Yurievich Goryunov. Reason why this individual was an interested party in the transaction: Roman Yurievich Goryunov is a member of the Executive Board of OJSC RTS.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes No.07-13-1304 dd. April 13, 2007).
15. Transaction type: non-arm’s length transaction; Date transaction conducted: February 1, 2007 Full company name of the legal entity that originally owned securities placed by the transaction: Not-for-profit Partnership St. Petersburg Stock Exchange. Short company name of the legal entity that originally owned securities placed by the transaction: NP St. Petersburg Stock Exchange. 72 Address of the legal entity that originally owned securities placed by the transaction: 15 26th Line of Vasilevsky Island, St. Petersburg, 199026. Number of securities placed by the transaction: 16,000.
Individual recognized as the interested party in the transaction on behalf of the issuer: Full name of individual: Viktor Vasilievich Nikolaev. Reason why this individual was an interested party in the transaction: Viktor Vasilievich Nikolaev is a member of the Board of Directors and also the executive body of NP St. Petersburg Stock Exchange.
Details on the approval of the transaction by the issuer’s authorized management body: The resolution on approval of the non-arm’s length transaction was made at a special shareholders’ meeting of OJSC RTS (Minutes No.07-13-1304 dd. April 13, 2007).
73 LIST OF AFFILIATES
Russian Trading System Stock Exchange Open Joint Stock Company
Full Legal Entity Ground(s) Share of Proportion Date on No. Company Location or for participation of the which the Name Individual’s Recognizi of affiliate joint-stock Reason(s) (Name of Address ng the in the company’ was (were) Not-for- (disclosed Entity as charter s ordinary recognized capital of Profit only with the an shares the joint-
Organizati individual’s Affiliate stock belonging on) or Full consent) company, % to the Name of affiliate, Affiliate %
1 2 3 4 5 6 7 1. Roman Moscow Chief Executive 0.8 0.8 July 25, 2007 Yurievich Officer Goryunov Member of the August 17, Executive Board of 2006 the Company 2. Jacques Der Moscow Member of the Board - - June 19, 2007 Megreditchian of Directors of the Company June 19, 3. Andrey Moscow Member of the Board - - 2007 Yurievich of Directors of the Babenko Company June 19, 4. Alexander Moscow Member of the Board - - 2007 Naumovich of Directors of the Pertsovsky Company June 19, 5. Oleg Moscow Member of the Board - - 2007 Petrovich of Directors of the Safonov Company June 19, 6. Anatoly Moscow Member of the Board - - 2007 Grigorievich of Directors of the Gavrilenko Company June 19, 7. Dominic Paul Moscow Member of the Board - - 2007 Gualtieri of Directors of the Company June 19, 8. Alexander Moscow Member of the Board - - 2007 Vladimorovic of Directors of the h Kandel Company June 19, 9. Sergey Moscow Member of the Board - - 2007 Aleksandrovic of Directors of the h Zharov Company June 19, 10. Marlen Moscow Member of the Board - - 2007 74 Jeraldovich of Directors of the Manasov Company June 19, 11. Viktor Moscow Member of the Board - - 2007 Vasilievich of Directors of the Nikolaev Company June 19, 12. Ivan Moscow Member of the Board - - 2007 Aleksandrovic of Directors of the h Tyryshkin Company June 19, 13. Oleg Moscow Member of the Board - - 2007 Evgenievich of Directors of the Yachnik Company June 19, 14. Evgeny Moscow Member of the Board - - 2007 Borisovich of Directors of the Kogan Company June 19, 15. Sergey Moscow Member of the Board - - 2007 Vladimirovich of Directors of the Marinich Company June 19, 16. Vladimir Moscow Member of the Board - - 2007 Nikolaevich of Directors of the Melentiev Company June 19, 17. Dmitry Moscow Member of the Board - - 2007 Nikolaevich of Directors of the Snesar Company June 19, 18. Aleksey Moscow Member of the Board - - 2007 Viktorovich of Directors of the Timofeev Company August 17, 19. Anna Moscow Member of the - - 2006 Vasilievna Executive Board of Kuznetsova the Company August 17, 20. Dmitry Moscow Member of the - - 2006 Aleksandrovic Executive Board of h Shatsky the Company August 17, 21. Evgeniya Moscow Member of the - - 2006 Ivanovna Executive Board of Gracheva the Company 22. RTS Clearing Bldg 1, 38 The entity belongs to - - May 22, 2007 Center Closed Dolgorukovskaya the group of entities
Joint Stock St, Moscow, to which the joint Company 127006 stock company belongs. OJSC RTS may take direct control as it is in ownership of 100% of the votes to the shares that form the charter capital of this entity. 75
23. Non-Banking Bldg 1, 38 The entity belongs to - - October 1, Credit Dolgorukovskaya the group of entities 2007 Organization St, Moscow, to which the joint RTS 127006 stock company Settlement belongs. Chamber OJSC RTS may take (Limited direct control as it is Liability in ownership of 100% Company) of the votes to the stock that forms the charter capital of this entity. 24. Depository Bldg Б, The entity belongs to - - May 28, 2007 Clearing Shabalovka St, the group of entities
Company Moscow, 115162 to which the joint Closed Joint stock company Stock belongs. Company OJSC RTS may take direct control as it is in ownership of 56.52% of the votes to the shares that form the charter capital of this entity. The entity belongs to 25. RTS Index Bldg 1, 38 - - the group of entities September 20, Agency LLC Dolgorukovskaya to which the joint 2004 St, Moscow, stock company 127006 belongs. OJSC RTS may take indirect control as it is in ownership of 100% of the votes of RTS Clearing Center CJSC, which is 100% of the total number of votes to the stock that forms the charter capital of this entity. The entity belongs to .2005 26. CPM Limited 10, Kolskaya St, - - the group of entities Liability Moscow, 129329 to which the joint Company stock company belongs. OJSC RTS may take indirect control as it is in ownership of 100% of the votes of RTS Clearing Center CJSC, which is 35% of the total number of votes to the stock that forms the charter capital of this entity.
76
77
List of Instruments Admitted to Trading as of December 31, 2007
78
List of Instruments Admitted to Trading as of December 31, 2007
Classic Market T+0 Market Name of Issuer/Asset Management Type of List Admission to Code Code Company (Mutual Fund) Security Section trading/ transfer to a higher position on List Section in 2007 AG Capital INTERRA closed-end real estate investment fund, under the management of AG Capital Asset Investment AGAMIT AGAMITG Management CJSC units А1 + Ordinary EESR EESRG RAO UES of Russia OJSC shares А1 Ordinary LKOH LKOHG LUKOIL OJSC shares А1 Ordinary RTKM RTKMG Rostelecom OJSC shares А1 Ordinary SBER SBERG Sberbank of Russia OJSC shares А1 Ordinary TATN TATNG Tatneft OJSC shares А1 Ordinary URSI URSIG Uralsvyazinform OJSC shares А1 Ordinary AFLT AFLTG Aeroflot OJSC shares А2 Privileged EESRP EESRPG RAO UES of Russia OJSC shares А2 Ordinary ENCO ENCOG Sibirtelecom OJSC shares А2 Privileged ENCOP ENCOPG Sibirtelecom OJSC shares А2 ESMO ESMOG CenterTelecom OJSC Ordinary А2 79
shares Ordinary IRGZ IRGZG Irkutskenergo OJSC shares А2 Ordinary KUBN KUBNG UTK OJSC shares А2 Ordinary MSNG MSNGG Mosenergo OJSC shares А2 Ordinary NKNC NKNCG Nizhhnekamskneftekhim OJSC shares А2 + Ordinary NNSI NNSIG VolgaTelecom OJSC shares А2 Privileged NNSIP NNSIPG VolgaTelecom OJSC shares А2 Ordinary OMZZ OMZZG OMZ OJSC shares А2 Ordinary RBCI RBCIG RBC Information Systems OJSC shares А2 Privileged RTKMP RTKMPG Rostelecom OJSC shares А2 SibiryaK open-end bond investment fund under the management of SibiryaK Asset Investment SIBKBN SIBKBNG Management LLC units А2 + SibiryaK open-end investment share fund under the management of SibiryaK Asset Investment SIBKSH SIBKSHG Management LLC units А2 + Ordinary SPTL SPTLG North-West Telecom OJSC shares А2 Privileged SPTLP SPTLPG North-West Telecom OJSC shares А2 Privileged TATNP TATNPG Tatneft OJSC shares А2 Privileged URSIP URSIPG Uralsvyazinform OJSC shares А2 VZRZ VZRZG Vozrozhdenie Bank (OJSC) Ordinary А2 + 80
shares Ordinary AFKS AFKSG Sistema JSFC OJSC shares B Ordinary APTK APTKG Pharmacy Chain 36.6 OJSC shares B Ordinary ARMD ARMDG ARMADA PJSC shares B + Ordinary CHMF CHMFG Severstal OJSC shares B Ordinary CHZN CHZNG CZP OJSC shares B + Dagestan Regional Generation Company Ordinary DAGR DAGRG OJSC shares B Ordinary DGEN DGENG Dagenergo OJSC shares B Privileged ESMOP ESMOPG CenterTelecom OJSC shares B Ordinary ESPK ESPKG Dalsvyaz OJSC shares B Ordinary FESH FESHG FESCO OJSC shares B Ordinary GCHE GCHEG Cherkizovo Group OJSC shares B Ordinary GMKN GMKNG MMC Norilsk Nickel OJSC shares B Ordinary GRAZ GRAZG RAZGULAY Group OJSC shares B Ordinary IRKT IRKTG Irkut Corporation OJSC shares B Ordinary KLNA KLNAG KALINA Concern OJSC shares B Ordinary KMAZ KMAZG KAMAZ OJSC shares B KUBNP KUBNPG UTK OJSC Privileged B 81
shares Ordinary KZBE KZBEG Kusbassenergo OJSC shares B + Ordinary LEKZ LEKZG Lebedyansky OJSC shares B Ordinary LSNG LSNGG Lenenergo OJSC shares B + Privileged LSNGP LSNGPG Lenenergo OJSC shares B + Ordinary MAGN MAGNG MMK OJSC shares B Ordinary MGNT MGNTG Magnit OJSC shares B + Moscow Integrated Electricity Distribution Ordinary MSRS MSRSG Company OJSC shares B Ordinary MTLR MTLRG Mechel OJSC shares B Nevo Invest closed-end real estate investment fund under the management Investment MUZENI MUZENIG of Muzei Asseet Management LLC units B + Ordinary NLMK NLMKG NLMK OJSC shares B Ordinary NOMP NOMPG Novoship OJSC shares B + NOVA-CAPITAL closed-end direct investment fund under the management Investment NOVANK NOVANKG of NOVA CJSC units B Ordinary NTRI NTRIG NUTRINVESTHOLDING OJSC shares B + Ordinary NVTK NVTKG NOVATEK OJSC shares B Ordinary OGKB OGKBG OGK-2 OJSC shares B + OGKC OGKCG OGK-3 OJSC Ordinary B 82
shares Ordinary OGKD OGKDG OGK-4 OJSC shares B + Ordinary OGKE OGKEG OGK-5 OJSC shares B Ordinary OPIN OPING OPIN OJSC shares B Ordinary PHST PHSTG Pharmstandard OJSC shares B + Ordinary PIKK PIKKG PIK Company Group OJSC shares B + Ordinary PLZL PLZLG Polyus Gold OJSC shares B Ordinary PMTL PMTLG Polymetal OJSC shares B + Ordinary RASP RASPG Raspadskaya OJSC shares B + Renaissance-RTS Index open-end index investment fund, under the management of Renaissance Capital Asset Investment RENRTS RENRTSG Management Company LLC units B Ordinary ROSN ROSNG Rosneft Oil Company OJSC shares B Ordinary RTMC RTMCG RTM OJSC shares B + Ordinary RUSI RUSIG RUSS-INVEST OJSC shares B + Privileged SBERP SBERPG Sberbank of Russia OJSC shares B Ordinary SCON SCONG The Seventh Continent OJSC shares B Ordinary SIBN SIBNG Gazprom Neft OJSC shares B SILM SILMG Power Machines OJSC Ordinary B 83
shares Ordinary SITR SITRG SITRONICS OJSC shares B + Ordinary SNGS SNGSG Surgutneftegas OJSC shares B Privileged SNGSP SNGSPG Surgutneftegas OJSC shares B Strazhi Urala closed-end investment fund under the management of Sodruzhestvo Investment SODGSU SODGSUG Asset Management Company LLC units B + Ordinary SVAV SVAVG Severstal-auto OJSC shares B Ordinary TGKA TGKAG TGC-1 OJSC shares B + Ordinary TGKB TGKBG TGC-2 OJSC shares B + Ordinary TGKD TGKDG TGC-4 OJSC shares B + Ordinary TGKE TGKEG TGC-5 OJSC shares B Ordinary TGKF TGKFG TGC-6 OJSC shares B Ordinary TGKG TGKGG Volga TGC, TGC-7 OJSC shares B + Ordinary TGKH TGKHG SGC TGC-8 OJSC shares B Ordinary TGKI TGKIG TGC-9 OJSC shares B + Ordinary TGKJ TGKJG TGC-10 OJSC shares B + Ordinary TGKM TGKMG Yenisei TGC (TGC-13) OJSC shares B + Ordinary TRMK TRMKG TMK OJSC shares B + 84
Ordinary URKA URKAG Uralkaliy OJSC shares B Privileged URSAP URSAPG URSA Bank OJSC shares B + Ordinary VRPH VRPHG VEROPHARM OJSC shares B Ordinary VSMO VSMOG VSMPO-AVISMA Corporation OJSC shares B Ordinary VTBR VTBRG VTB Bank OJSC shares B + Ordinary WBDF WBDFG WBD Foods OJSC shares B Ordinary WTCM WTCMG WTC Moscow OJSC shares B + Privileged WTCMP WTCMPG WTC Moscow OJSC shares B + Ordinary YARE YAREG Yarenergo OJSC shares B Privileged YAREP YAREPG Yarenergo OJSC shares B Ordinary ZYGS ZYGSG Zeya HPS OJSC shares B Privileged ZYGSP ZYGSPG Zeya HPS OJSC shares B Ordinary NMTP NMTPG NCSP OJSC shares В + Ordinary STBK STBKG Saint Petersburg Bank OJSC shares В + Ordinary DIXY DIXYG DIXY Group OJSC shares I + Ordinary LSRG LSRGG LSR Group OJSC shares I + Ordinary MVID MVIDG M.video Company OJSC shares I + 85
AIZK02 AHML OJSC Bonds AIZK03 AHML OJSC Bonds AIZK04 AHML OJSC Bonds AIZK05 AHML OJSC Bonds AIZK06 AHML OJSC Bonds Ordinary AKHA AKHAG PAVA OJSC shares Ordinary AKRN AKRNG Acron OJSC shares ALNC01 Alliance Oil Company OJSC Bonds Ordinary ALRT ALRTG Alliance Russian Textile OJSC shares + Ordinary AMEZ AMEZG Ashinskiy Metallurgical Works OJSC shares APTK01 Pharmacy Chain 36.6 OJSC Bonds Ordinary ARHE ARHEG Arkhenergo OJSC shares Privileged ARHEP ARHEPG Arkhenergo OJSC shares Arsagera Residential Construction closed-end real estate investment fund under the management of Arsagera Investment ARSAHB ARSAHBG Asset Management Company OJSC units Arkhangelskaya Generation Company Ordinary ARSB ARSBG OJSC shares Arkhangelskaya Generation Company Privileged ARSBP ARSBPG OJSC shares Ordinary ASRE ASREG Arkhangelskenergo OJSC shares Ordinary ASSB ASSBG Astrakhan Energy Retail Company OJSC shares Ordinary AVAZ AVAZG AvtoVAZ OJSC shares AVAZ03 AvtoVAZ OJSC Bonds 86
AVAZ04 AvtoVAZ OJSC Bonds + Privileged AVAZP AVAZPG AvtoVAZ OJSC shares Ordinary BANE BANEG Bashneft OJSC shares Privileged BANEP BANEPG Bashneft OJSC shares Ordinary BEGY BEGYG Bashkirenergo OJSC shares Privileged BEGYP BEGYPG Bashkirenergo OJSC shares Ordinary BISV BISVG Bashinformsvyaz OJSC shares Privileged BISVP BISVPG Bashinformsvyaz OJSC shares BLGK01 Belgrankorm LLC Bonds BLNF01 Belon Finance LLC Bonds Ordinary BLNG BLNGG Belon OJSC shares Ordinary BLRS BLRSG Belgorodenergo OJSC shares Privileged BLRSP BLRSPG Belgorodenergo OJSC shares Ordinary BLSB BLSBG Belgorod Retail Company OJSC shares Privileged BLSBP BLSBPG Belgorod Retail Company OJSC shares Ordinary BNSB BNSBG Bryansk Retail Company OJSC shares Privileged BNSBP BNSBPG Bryansk Retail Company OJSC shares Ordinary BREN BRENG Bryanskenergo OJSC shares BRENP BRENPG Bryanskenergo OJSC Privileged 87
shares BROS01 ROSSIYA BANK OJSC Bonds + Ordinary BRZL BRZLG BuryatZoloto OJSC shares Ordinary BUSB BUSBG Buryatenergosbyt OJSC shares + Ordinary CHEP CHEPG ChTRP OJSC shares CHEP01 ChTRP OJSC Bonds Ordinary CHGZ CHGZG Chernogorneft OJSC shares Ordinary CHIE CHIEG Chitaenergo OJSC shares Privileged CHIEP CHIEPG Chitaenergo OJSC shares Ordinary CHMK CHMKG Chelyabinsk Metallurgical Plant OJSC shares Ordinary CHNG CHNGG Chelyabenergo OJSC shares Privileged CHNGP CHNGPG Chelyabenergo OJSC shares Ordinary CHSB CHSBG Chita Energy Retail Company OJSC shares Privileged CHSBP CHSBPG Chita Energy Retail Company OJSC shares Ministry of Finance of the Chuvash CHUR04 Republic Bonds Chelyabenergosbyt OJSC Ordinary CLSB CLSBG shares Chelyabenergosbyt OJSC Privileged CLSBP CLSBPG shares Ordinary CMST CMSTG COMSTAR UTS OJSC shares CNTL CNTLG Central Telegraph OJSC Ordinary 88
shares Privileged CNTLP CNTLPG Central Telegraph OJSC shares Ordinary DASB DASBG Dagestan Energy Retail Company OJSC shares Ordinary DGBZ DGBZG Dorogobuzh OJSC shares Privileged DGBZP DGBZPG Dorogobuzh OJSC shares DSCB02 DSC CJSC Bonds Ordinary DVEC DVECG FEEC OJSC shares + Ordinary EAGR EAGRG Energiya-Agro OJSC shares + European Bank for Reconstruction and EBRD01 Development Bonds European Bank for Reconstruction and EBRD02 Development Bonds Ordinary ELIB ELIBG ELSIB OJSC shares ENCO05 Sibirtelecom OJSC Bonds ENCO06 Sibirtelecom OJSC Bonds Ordinary ENGY ENGYG Energy OJSC shares Ordinary ERCO ERCOG ERCO OJSC shares ESMO04 CenterTelecom OJSC Bonds ESMO05 CenterTelecom OJSC Bonds Privileged ESPKP ESPKPG Dalsvyaz OJSC shares Ordinary FARM FARMG Farmakon OJSC shares FEES02 FGC UES OJSC Bonds FEES03 FGC UES OJSC Bonds 89
FEES04 FGC UES OJSC Bonds FEES05 FGC UES OJSC Bonds + Ordinary GAZA GAZAG GAZ OJSC shares Privileged GAZAP GAZAPG GAZ OJSC shares GAZF01 GAZ Finance LLC Bonds GAZP Gazprom OJSC Shares GAZP04 Gazprom OJSC Bonds GAZP06 Gazprom OJSC Bonds GAZP07 Gazprom OJSC Bonds + GAZP08 Gazprom OJSC Bonds + GAZP09 Gazprom OJSC Bonds + GMSF02 Glavmosstroy Finance LLC Bonds Ordinary GUMM GUMMG GUM Trading House OJSC shares GZPR01 Gazprombank (OJSC) Bonds Ordinary HALS HALSG Sistema-Hals OJSC shares + HCFB02 HCF Bank LLC Bonds HCFB03 HCF Bank LLC Bonds HCFB04 HCF LLC Bonds Ordinary HIMC HIMCG Khimprom OJSC shares Privileged HIMCP HIMCPG Khimprom OJSC shares Interfin ENERGIYA index investement fund under the management of Interfin CAPITAL Asset Management Company Investment IFCAEC IFCAECG CJSC units Investitsionniy closed-end investement fund under the management of Interfin CAPITAL Asset Management Company Investment IFCAIN IFCAING CJSC units 90
Interfin INDUSTRIYA open-end investment fund under the management of Interfin CAPITAL Asset Management Investment IFCAMC IFCAMCG Company CJSC units Interfin TELECOM open-end share investment fund under the management of Interfin CAPITAL Asset Management Investment IFCATC IFCATCG CJSC units Ordinary IGST IGSTG Izhstal OJSC shares Privileged IGSTP IGSTPG Izhstal OJSC shares Ordinary ILSO ILSOG Iletsksol OJSC shares INTF02 Integra Finance LLC Bonds + IRKO02 Administration of the Irkutsk Region Bonds IRKT03 Irkut Corporation OJSC Bonds Ordinary IVEN IVENG Ivenergo OJSC shares Privileged IVENP IVENPG Ivenergo OJSC shares Ordinary IVSB IVSBG Ivanovo Energy Retail Company OJSC shares Privileged IVSBP IVSBPG Ivanovo Energy Retail Company OJSC shares Ordinary JNOS JNOSG Slavneft-Yaroslavnefteorgsintez OJSC shares Privileged JNOSP JNOSPG Slavneft-Yaroslavnefteorgsintez OJSC shares Ordinary KAPM KAPMG Capital M OJSC shares + Ordinary KCHE KCHEG Kamchatsenergo OJSC shares + KHEL KHELG Kazan Helicopter Plant OJSC Ordinary 91
shares Ordinary KIRE KIREG Kirovenergo OJSC shares Privileged KIREP KIREPG Kirovenergo OJSC shares Ordinary KIRZ KIRZG Kirovsky Zavod OJSC shares Ordinary KISB KISBG Kirov Energy and Retail Company OJSC shares Privileged KISBP KISBPG Kirov Energy and Retail Company OJSC shares Ordinary KLEN KLENG Kalugaenergo OJSC shares Ordinary KLSB KLSBG Kaluga Retail Company OJSC shares Ordinary KMTZ KMTZG Kosaya Gora Iron Works OJSC shares + KMZF02 KAMAZ FINANCE LLC Bonds Department of Finance of the Administration of the Krasnoyarsk KNAK03 Territory Bonds Ordinary KOEN KOENG Komienergo OJSC shares Privileged KOENP KOENPG Komienergo OJSC shares Ordinary KOGK KOGKG Korshunov Mining Plant OJSC shares KOKS01 Koks OJSC Bonds Ordinary KOLE KOLEG Kolenergo OJSC shares Privileged KOLEP KOLEPG Kolenergo OJSC shares Ordinary KOMM KOMMG Kommunar Paper Mill OJSC shares + 92
Ministry of Finance of the Republic of KOMR08 Komi Bonds Ordinary KOPK KOPKG KOPEIKA Trading House OJSC shares KOPK02 KOPEIKA Trading House OJSC Bonds Ordinary KOSB KOSBG Kol Energy and Retail Company OJSC shares Privileged KOSBP KOSBPG Kol Energy and Retail Company OJSC shares Ordinary KOSG KOSGG Kostromaenergo OJSC shares Privileged KOSGP KOSGPG Kostromaenergo OJSC shares Ordinary KRGE KRGEG Kurganenergo OJSC shares Privileged KRGEP KRGEPG Kurganenergo OJSC shares Ordinary KRKN KRKNG Saratov Oil Refinery OJSC shares Privileged KRKNP KRKNPG Saratov Oil Refinery OJSC shares The Taganrog Boiler-Making Works Ordinary KRKO KRKOG Krasny Kotelshchik OJSC shares The Taganrog Boiler-Making Works Privileged KRKOP KRKOPG Krasny Kotelshchik OJSC shares Ordinary KRNG KRNGG Krasnoyarskenergo OJSC shares Privileged KRNGP KRNGPG Krasnoyarskenergo OJSC shares KRNK05 Administration of the City of Krasnoyarsk Bonds Ordinary KROT KROTG Krasny Oktyabr OJSC shares Privileged KROTP KROTPG Krasny Oktyabr OJSC shares 93
Ordinary KRSG KRSGG Krasnoyarsk Hydro Power Station OJSC shares Ordinary KTSB KTSBG Kostroma Retail Company OJSC shares Privileged KTSBP KTSBPG Kostroma Retail Company OJSC shares Ordinary KUBE KUBEG Kubanenergo OJSC shares Southern Telecommunications Company KUBN03 OJSC Bonds Southern Telecommunications Company KUBN04 OJSC Bonds Southern Telecommunications Company KUBN05 OJSC Bonds + Ordinary KUEN KUENG Kurskenergo OJSC shares Privileged KUENP KUENPG Kurskenergo OJSC shares Ordinary KUOS KUOSG Kuibyshevnefteorgsyntez OJSC shares Ordinary KUSB KUSBG Kursk Energy and Retail Company OJSC shares Privileged KUSBP KUSBPG Kursk Energy and Retail Company OJSC shares Ordinary KZMS KZMSG Krasnokamsk Metal Mesh Works OJSC shares Ordinary KZOS KZOSG Kazan Organichesky Sintez OJSC shares Ordinary KZRS KZRSG Kusbassenergo RSK OJSC shares + Ordinary LENA LENAG Hotel Lena OJSC shares + LENO02 Government of the Leningrad Region Bonds LENO03 Government of the Leningrad Region Bonds 94
Ordinary LIEN LIENG Lipetskenergo OJSC shares Ordinary LISM LISMG Lisma OJSC shares LKOH02 LUKOIL OJSC Bonds LKOH03 LUKOIL OJSC Bonds + LKOH04 LUKOIL OJSC Bonds + Ordinary LOMO LOMOG LOMO OJSC shares Privileged LOMOP LOMOPG LOMO OJSC shares Lipetsk Energy and Retail Company Ordinary LPSB LPSBG OJSC shares LSNG02 Lenenergo OJSC Bonds + LSNG03 Lenenergo OJSC Bonds + LSRI02 LSR Invest OJSC Bonds + Ordinary MAGE MAGEG Magadanenergo OJSC shares Privileged MAGEP MAGEPG Magadanenergo OJSC shares MARF01 MARF01G Mart Finance CJSC Bonds + MARF02 MARF02G Mart Finance CJSC Bonds + MARF03 MARF03G Mart Finance CJSC Bonds + DEMIDOFF RENTNAYA NEDVIZHIMOST closed-end investment fund under the management of Mayak Investment MASMRN MASMRNG Asset Management Company LLC units + Ordinary MASZ MASZG Mashinostroitelnyzavod OJSC shares MBWB03 MDM Bank OJSC Bonds + MDVF01 Medved Finance LLC Bonds Ordinary MFGS MFGSG Slavneft Megionneftegaz OJSC shares MFGSP MFGSPG Slavneft Megionneftegaz OJSC Privileged 95
shares MFON03 Megafon OJSC Bonds Ordinary MGNZ MGNZG Solikamsk Magnesium Works OJSC shares Moscow City Electricity Distribution Ordinary MGRS MGRSG Company OJSC shares Ordinary MGTS MGTSG Moscow City Telephone Network OJSC shares Privileged MGTSP MGTSPG Moscow City Telephone Network OJSC shares MIAB02 Moscow Mortgage Agency Bank (OJSC) Bonds Ordinary MIEN MIENG Marienergo OJSC shares Privileged MIENP MIENPG Marienergo OJSC shares Ordinary MISB MISBG Marie Energy and Retail Company OJSC shares Privileged MISBP MISBPG Marie Energy and Retail Company OJSC shares MOGF01 Mosoblgaz Finance LLC Bonds MOOB04 Government of the Moscow Region Bonds MOOB05 Government of the Moscow Region Bonds MOOB06 Government of the Moscow Region Bonds MOOB07 Government of the Moscow Region Bonds + Ordinary MORI MORIG Morion OJSC shares MOS029 Government of the City of Moscow Bonds MOS036 Government of the City of Moscow Bonds MOS038 Government of the City of Moscow Bonds MOS039 Government of the City of Moscow Bonds MOS041 Government of the City of Moscow Bonds MOS043 Government of the City of Moscow Bonds MOS044 Government of the City of Moscow Bonds MOS047 Government of the City of Moscow Bonds 96
MOTZ01 Motovilicha Plants OJSC Bonds Ordinary MREN MRENG Mordovenergo OJSC shares Mordovia Energy and Retail Company Ordinary MRSB MRSBG OJSC shares MSNG01 Mosenergo OJSC Bonds MSNG02 Mosenergo OJSC Bonds Moscow Integrated Electricity Distribution MSRS01 MSRS01G Plant OJSC Bonds Ordinary MSSB MSSBG Mosenergosbyt OJSC shares Moscow Heat Distribution Company Ordinary MSSV MSSVG OJSC shares MTLR02 Mechel OJSC Bonds Ordinary MTSS MTSSG MTS OJSC shares Ordinary MUGS MUGSG Murmansk CHPP OJSC shares Privileged MUGSP MUGSPG Murmansk CHPP OJSC shares Ordinary NFAZ NFAZG Neftekamsky Avtozavod OJSC shares + NEOFITOUS open-end share investment fund under the management of NEOFITUS Asset Management Investment NFTSFA NFTSFAG Company OJSC units + NEOFITOUS Index MMVB open-end index investment fund under the management of NEOFITUS Asset Investment NFTSIM NFTSIMG Management Company OJSC units + NEOFITOUS open-end blend investment fund under the management of NEOFITOUS Asset Management Investment NFTSSI NFTSSIG Company OJSC units + 97
Ordinary NGNR NGNRG Novgorodenergo OJSC shares Privileged NGNRP NGNRPG Novgorodenergo OJSC shares Novogorod Energy and Retail Company Ordinary NGSB NGSBG OJSC shares Novogorod Energy and Retail Company Privileged NGSBP NGSBPG OJSC shares NIKI02 NIKOSHIM INVEST LLC Bonds Ministry of Finance of the Nizhegorod NJGO02 Region Bonds NKNC04 Nizhnekamskneftekhim OJSC Bonds Privileged NKNCP NKNCPG Nizhnekamskneftekhim OJSC shares LUKOIL open-end First Fund investment fund under the management of UralSib Investment NKOLFI NKOLFIG Asset Management Company CJSC units LUKOIL open-end Professional Fund investment fund under the management of UralSib Asset Management Company Investment NKOLPR NKOLPRG CJSC units LUKOIL Branch Investment Fond under the management of UralSib Asset Investment NKOLSE NKOLSEG Management Company CJSC units LUKOIL Future Investment Fund under the management of UralSib Asset Investment NKOLTH NKOLTHG Management Company CJSC units Ordinary NKSH NKSHG Nizhekamskshina OJSC shares NLIC01 NLC CJSC Bonds Kuzmin Novosibirsk Metallurgical Works NMZK01 OJSC Bonds Ordinary NNGE NNGEG Nizhnovenergo OJSC shares 98
Privileged NNGEP NNGEPG Nizhnovenergo OJSC shares Ordinary NNSB NNSBG Nizhegorod Retail Company OJSC shares Privileged NNSBP NNSBPG Nizhegorod Retail Company OJSC shares NNSI02 VolgaTelecom OJSC Bonds NNSI03 VolgaTelecom OJSC Bonds NNSI04 VolgaTelecom OJSC Bonds Ordinary NOKN NOKNG Novosibirsk Tin Integrated Works OJSC shares Privileged NOMPP NOMPPG Novoship OJSC shares + Ordinary NOSP NOSPG Nefteport OJSC shares NSBG03 Novosibirsk City Administration Bonds Ordinary NVNG NVNGG Novosibirskenergo OJSC shares Privileged NVNGP NVNGPG Novosibirskenergo OJSC shares NVOB03 Novosibirsk Region Administration Bonds Ordinary NVRC NVRCG Novoroscement OJSC shares Privileged NVRCP NVRCPG Novoroscement OJSC shares Ordinary NZGZ NZGZG Nizhnevartovskneftegaz OJSC shares Ordinary OGKA OGKAG OGK-1 OJSC shares OGKE01 OGK-5 OJSC Bonds Ordinary OGKF OGKFG OGK-6 OJSC shares OLMA FINANCE Asset Management Investment OLMRTS OLMRTSG Company LLC units 99
OMKO01 United Metallurgical Company CJSC Bonds Ordinary OMNG OMNGG Omskenergo OJSC shares Privileged OMNGP OMNGPG Omskenergo OJSC shares Ordinary OMSB OMSBG Omskenergosbyt OJSC shares Privileged OMSBP OMSBPG Omskenergosbyt OJSC shares OMZZ05 OMZ OJSC Bonds Privileged OMZZP OMZZPG OMZ OJSC shares Ordinary OPCM OPCMG Orel Industrial Company OJSC shares Ordinary OPTM OPTMG Optima OJSC shares + Ordinary OREN ORENG Orelenergo OJSC shares Privileged ORENP ORENPG Orelenergo OJSC shares Ordinary ORSB ORSBG Orelenergosbyt OJSC shares Privileged ORSBP ORSBPG Orelenergosbyt OJSC shares OLMA open-end index investment fund under the management of Otkrytiye Investment OTKRBN OTKRBNG Asset Management Company LLC units OLMA open-end share investment fund under the management of Otkrytiye Investment OTKRSH OTKRSHG Asset Management Company LLC units Ordinary PAZA PAZAG Pavlovo Bus OJSC shares Ordinary PBSB PBSBG Petersburg Retail Company OJSC shares 100
Privileged PBSBP PBSBPG Petersburg Retail Company OJSC shares Machine Building Factory of Podolsk Ordinary PDMS PDMSG OJSC shares Ordinary PETR PETRG Petrocommerce Bank OJSC shares PETR02 Petrocommerce Bank OJSC Bonds PITI02 PIT Investments LLC Bonds Ordinary PKBA PKBAG Baltika Brewery OJSC shares Privileged PKBAP PKBAPG Baltika Brewery OJSC shares Ordinary PMNG PMNGG Permenergo OJSC shares Privileged PMNGP PMNGPG Permenergo OJSC shares Ordinary PMOT PMOTG Perm Motors OJSC shares Ordinary PMSB PMSBG Permenergosbyt OJSC shares Privileged PMSBP PMSBPG Permenergosbyt OJSC shares Ordinary PNTZ PNTZG Pervouralsk New Pipe Plant OJSC shares Ordinary PNZE PNZEG Penzaenergo OJSC shares Privileged PNZEP PNZEPG Penzaenergo OJSC shares Ordinary PPND PPNDG Permpromnedvizhimost OJSC shares PRFN01 Protek Finance LLC Bonds Ordinary PRIM PRIMG Primorsk Shipping Corporation OJSC shares PROM PROMG Promactive OJSC Ordinary 101
shares Ordinary PRPM PRPMG Proton Permskiye Motory OJSC shares Ordinary PSEN PSENG Pskovenergo OJSC shares PTRK01 Pyaterochka Finance LLC Bonds PTRK02 Pyaterochka Finance LLC Bonds Ordinary PTRL PTRLG RUSIA Petroleum OJSC shares Ordinary PTRM PTRMG ProfTehResource M OJSC shares + Ordinary PZSB PZSBG Penzaenergosbyt OJSC shares Privileged PZSBP PZSBPG Penzaenergosbyt OJSC shares RALF03 Russian Aluminium Finance LLC Bonds Renaissance open-end blend investment fund - Active Management Fund under the management of Renaissance Asset Investment RENMAM RENMAMG Management LLC units + Index investment fund – Dividend Shares and Corporate Bonds under the management of REGION Asset Investment RGAMSB RGAMSBG Management Company CJSC units Russian Innovation Fuel and Energy Ordinary RITK RITKG Company OJSC shares Russian Innovation Fuel and Energy Privileged RITKP RITKPG Company OJSC shares Ordinary ROSB ROSBG ROSBANK OJSC shares ROSINTER RESTAURANTS Ordinary ROST ROSTG HOLDIONG OJSC shares + ROTR01 ROTR01G Rotor LLC Bonds RSAM RSAMG Russkiye Samotsvety OJSC Ordinary 102
shares RSBN04 Russian Standard Bank CJSC Bonds RSBN05 Russian Standard Bank CJSC Bonds RSBN06 Russian Standard Bank CJSC Bonds RSBN07 Russian Standard Bank CJSC Bonds RSHB01 Rosselhozbank OJSC Bonds RSHB02 Rosselhozbank OJSC Bonds Ministry of Finance of the republic of RSYO06 Sakha (Yakutia) Bonds Ministry of Finance of the republic of RSYO07 Sakha (Yakutia) Bonds Ordinary RTKK RTKKG RTK Kapital OJSC shares Energosbyt Rostovenergo OJSC Ordinary RTSB RTSBG shares Energosbyt Rostovenergo OJSC Privileged RTSBP RTSBPG shares Rostovenergo OJSC Ordinary RTSE RTSEG shares Rostovenergo OJSC Privileged RTSEP RTSEPG shares RUSF01 Rusfinance Bank LLC Bonds + RUSF02 Rusfinance Bank LLC Bonds + RUSN01 RussNeft Oil Company OJSC Bonds Ordinary RUSP RUSPG Ruspolimet OJSC shares Ordinary RZEN RZENG Ryazanenergo OJSC shares RZHD03 Russian Railways OJSC Bonds RZHD05 Russian Railways OJSC Bonds RZHD06 Russian Railways OJSC Bonds RZHD07 Russian Railways OJSC Bonds Ryazan Energy and Retail Company Ordinary RZSB RZSBG OJSC shares 103
Ordinary SAGO SAGOG Samaraenergo OJSC shares + Privileged SAGOP SAGOPG Samaraenergo OJSC shares + Ministry of Finance of the Samara SAMR03 Region Bonds Ministry of Finance of the Samara SAMR04 Region Bonds + National Oil and Gas Company Ordinary SANG SANGG Sakhaneftegaz OJSC shares Saratovenergo OJSC Ordinary SARE SAREG shares + Saratovenergo OJSC Privileged SAREP SAREPG shares + SATR01 NPO Saturn OJSC Bonds SATR03 NPO Saturn OJSC Bonds + Ordinary SBNK SBNKG Sobinbank OJSC shares SDFN01 Sodruzhestvo Finance LLC Bonds Ordinary SGMA SGMAG SIGMA OJSC shares + Ordinary SILV SILVG Silvinit OJSC shares SLST01 Salavatsteklo OJSC Bonds SLST02 Salavatsteklo OJSC Bonds Smolenskenergo OJSC Ordinary SMOE SMOEG shares Smolenskenergo OJSC Privileged SMOEP SMOEPG shares SMRT03 SMARTS CJSC Bonds Smolenskenergosbyt OJSC Ordinary SMSB SMSBG shares Smolenskenergosbyt OJSC Privileged SMSBP SMSBPG shares 104
Salavatnefteorgsintez OJSC Ordinary SNOZ SNOZG shares SNOZ02 Salavatnefteorgsintez OJSC Bonds Ordinary SNTZ SNTZG Sinarsky Tube Works OJSC shares SPTL03 North-West Telecom OJSC Bonds SPTL04 North-West Telecom OJSC Bonds + Neporozhniy SGES OJSC Ordinary SSHG SSHGG shares Neporozhniy SGES OJSC Privileged SSHGP SSHGPG shares Ordinary STBN STBNG Stella Bank OJSC shares Stavropol Electricity Generation Ordinary STGR STGRG Company OJSC shares Stavropol Electricity Generation Privileged STGRP STGRPG Company OJSC shares STGZ01 Stroytransgaz OJSC Bonds Stavropolenergo OJSC Ordinary STRG STRGG shares Stavropolenergo OJSC Privileged STRGP STRGPG shares Stavropolenergosbyt OJSC Ordinary STSB STSBG shares + Stavropolenergosbyt OJSC Privileged STSBP STSBPG shares + SVAV01 Severstal-auto OJSC Bonds Ordinary SVER SVERG Sverdlovenergo OJSC shares Privileged SVERP SVERPG Sverdlovenergo OJSC shares Sverdlovenergosbyt OJSC Ordinary SVSB SVSBG shares SVSBP SVSBPG Sverdlovenergosbyt OJSC Privileged 105
shares Ordinary SVTZ SVTZG Seversky Tube Works OJSC shares Ordinary SYNG SYNGG Synergy OJSC shares + Ordinary SZRP SZRPG North-West Shipping Company OJSC shares Tambovenergo OJSC Ordinary TAEN TAENG shares Tambovenergo OJSC Privileged TAENP TAENPG shares TALF01 TuranAlem Finance LLC Bonds Ordinary TAMZ TAMZG Taganrog Metallurgical Works OJSC shares Tantal OJSC Ordinary TANL TANLG shares Tantal OJSC Privileged TANLP TANLPG shares Tambov Energy and Retail Company Ordinary TASB TASBG OJSC shares Tambov Energy and Retail Company Privileged TASBP TASBPG OJSC shares Privileged TGKBP TGKBPG TGC-2 OJSC shares Privileged TGKDP TGKDPG TGC-4 OJSC shares Ordinary TGKK TGKKG TGC-11 OJSC shares + Ordinary TGKN TGKNG TGC-14 OJSC shares + Ordinary TGKO TGKOG Tagnarog Combine Factory OJSC shares Ordinary TLEN TLENG Tulenergo OJSC shares 106
Ordinary TLSB TLSBG Tula Retail Company OJSC shares Ordinary TMAT TMATG Utair Airline OJSC shares TMEN02 Tyumenenergo OJSC Bonds + Tomsk Distribution Company OJSC Ordinary TORS TORSG shares Tomsk Distribution Company OJSC Privileged TORSP TORSPG shares Tomsk Energy and Retail Company Ordinary TOSB TOSBG OJSC shares Tomsk Energy and Retail Company Privileged TOSBP TOSBPG OJSC shares Ordinary TRAV TRAVG Travers OJSC shares TRMH02 Transmashholding CJSC Bonds + TRMK02 TMK OJSC Bonds TRMK03 TMK OJSC Bonds Privileged TRNFP TRNFPG Transneft OJSC" shares Open-end investment fund – Dobrynya Nikitich under the management of Troika Investment TROYDN TROYDNG Dialog Asset Management CJSC units Open-end blend investment fund – Druzhina under the management of Investment TROYDR TROYDRG Troika Dialog Asset Management CJSC units Troika Dialog Electric Power open-end share investment fund under the management of Troika Dialog Asset Investment TROYEN TROYENG Management CJSC units + Troika Dialog Federal open-end investment fund under the management of Troika Dialog Asset Management Investment TROYFD TROYFDG CJSC units + 107
Troika Dialog Financial Sector open-end investment fund under the management of Troika Dialog Asset Management Investment TROYFS TROYFSG CJSC units + Open-end bond investment fund Ilya Muromets under the management of Investment TROYIM TROYIMG Troika Dialog Asset Management CJSC units Troika Dialog Metallurgy open-end investment fund under the management of Troika Dialog Asset Management Investment TROYMT TROYMTG CJSC units + Troika Dialog Oil and Gas Sector open- end investment fund under the management of Troika Dialog Asset Investment TROYNG TROYNGG Management CJSC units + Troika Dialog Consumer Sector open- end investment fund under the management of Troika Dialog Asset Investment TROYPS TROYPSG Management CJSC units + Potential index investment fund under the management of Troika Dialog Asset Investment TROYPT TROYPTG Management CJSC units Risk Bonds index bonds investment fund under the management of Troika Dialog Investment TROYRB TROYRBG Asset Management CJSC units Sadko open-end bonds investment fund under the management of Troika Dialog Investment TROYSD TROYSDG Asset Management CJSC units Troika Dialog Telecommunications open- end share investment fund under the management of Troika Dialog Asset Investment TROYTC TROYTCG Management CJSC units + Ordinary TTLK TTLKG Tattelecom OJSC shares TVRE TVREG Tverenergo OJSC Ordinary 108
shares Tverenergo OJSC Privileged TVREP TVREPG shares Tver Energy and Retail Company OJSC Ordinary TVSB TVSBG shares Tver Energy and Retail Company OJSC Privileged TVSBP TVSBPG shares Ordinary TZUM TZUMG TSUM Trading House OJSC shares Udmurtenergo OJSC Ordinary UDME UDMEG shares Udmurtenergo OJSC Privileged UDMEP UDMEPG shares Privileged UDMNP UDMNPG Udmurtneft OJSC shares Udmurt Energry and Retail Company Ordinary UDSB UDSBG OJSC shares Udmurt Energry and Retail Company Privileged UDSBP UDSBPG OJSC shares Ufa Engine industrial Association OJSC Ordinary UFMO UFMOG shares UFMO02 Ufa Engine industrial Association OJSC Bonds + Ufaneftekhim OJSC Ordinary UFNC UFNCG shares Ufaneftekhim OJSC Privileged UFNCP UFNCPG shares Ufaorgsintez OJSC Ordinary UFOS UFOSG shares Ufaorgsintez OJSC Privileged UFOSP UFOSPG shares UKGO01 GidroOGK OJSC Bonds Ordinary UKUZ UKUZG Southern Kuzbass Coal Company OJSC shares UNMF01 UNIMILK Finance LLC Bonds 109
URHC02 Ural Chemical Company OJSC Bonds URSI05 Uralsvyazinform OJSC Bonds Ordinary USBN USBNG URALSIB OJSC shares UTRF02 UTair Finance LLC Bonds UVZF01 Uralvagonzavod Finance LLC Bonds UVZF02 Uralvagonzavod Finance LLC Bonds Russian Regional Development Bank VBRR01 VBRR01G OJSC Bonds VBUM01 Volgaburmash OJSC Bonds Ordinary VDSB VDSBG Vladimirenergosbyt OJSC shares Ordinary VERT VERTG Vertical Industry Union OJSC shares + Volgogradenergo OJSC Ordinary VGEN VGENG shares Volgogradenergo OJSC Privileged VGENP VGENPG shares Volgogradenergosbyt OJSC Ordinary VGSB VGSBG shares Volgogradenergosbyt OJSC Privileged VGSBP VGSBPG shares Ordinary VIMP VIMPG Vimpel Communications OJSC shares Ordinary VJGZ VJGZG Varieganneftegaz OJSC shares Ordinary VLEN VLENG Vladimirenergo OJSC shares Zhigulev Hydroelectric Power Station Ordinary VLGS VLGSG OJSC shares Zhigulev Hydroelectric Power Station Privileged VLGSP VLGSPG OJSC shares Volga Interregional Distribution Company Ordinary VMRK VMRKG OJSC shares + 110
Volga Interregional Distribution Company Privileged VMRKP VMRKPG OJSC shares + Ordinary VOLE VOLEG Vologdaenergo OJSC shares Volga Hydroelectric Power Station OJSC Ordinary VOLG VOLGG shares Volga Hydroelectric Power Station OJSC Privileged VOLGP VOLGPG shares Ordinary VOSB VOSBG Vologda Retail Company OJSC shares Votkinsk Hydroelectric Power Station Ordinary VOTG VOTGG OJSC shares Voronezh Energy and Retail Company Ordinary VRSB VRSBG OJSC shares Voronezh Energy and Retail Company Privileged VRSBP VRSBPG OJSC shares VTBR04 VTB Bank OJSC Bonds VTBR05 VTB Bank OJSC Bonds VTBR06 VTB Bank OJSC Bonds Voronezhenergo OJSC Ordinary VZEN VZENG shares Voronezhenergo OJSC Privileged VZENP VZENPG shares WBDF02 WBD Foods OJSC Bonds XFIN01 X5 FINANCE LLC Bonds + Ordinary YAEN YAENG Yakutskenergo OJSC shares Ordinary YAKG YAKGG Yakutgazprom OJSC shares Administration of the Yamalo-Nenets YMLO01 Autonomous Region Bonds Yaroslavl Retail Company OJSC Ordinary YRSB YRSBG shares YRSBP YRSBPG Yaroslavl Retail Company OJSC Privileged 111
shares Department of Finance of the Yaroslavl YRSO04 Region Bonds Department of Finance of the Yaroslavl YRSO05 Region Bonds Ordinary ZAGR ZAGRG Zagorskaya PSPP OJSC shares Ordinary ZEMC ZEMCG ABS ZEiM Automation OJSC shares Ordinary ZILL ZILLG The Likhachov Plant OJSC shares ZiO-Podolsk Machine Building Plant Ordinary ZIOP ZIOPG OJSC shares Ordinary ZMZN ZMZNG Zavolzhsky Engine Plant OJSC shares Ordinary ZVEZ ZVEZG Zvezda OJSC shares
113 FORTS Derivatives Contracts Specifications Futures Contracts
No. Short Code Full Contract Code Underlying Asset Volume Type
Stock Market Futures on Shares 1 Delivery Contract on shares of RAO UES of ES EERU-mm.yy Russia, with quotations in roubles 1,000 shares delivery 2 Delivery Contract on shares of Gazprom OJSC, GZ GAZR-mm.yy with quotations in roubles 100 shares delivery 3 Delivery Contract on shares of Surgutneftegaz SN SNGR-mm.yy OJSC with quotations in roubles 1,000 shares delivery 4 Delivery Contract on shares of Lukoil Oil LK LKOH-mm.yy Company with quotations in roubles 10 shares delivery 5 Delivery Contract on shares of Rostelecom RT RTKM-mm.yy OJSC with quotations in roubles 100 shares delivery 6 Delivery Contract on shares of MMC Norilsk GM GMKR-mm.yy Nickel with quotations in roubles 10 shares delivery 7 Delivery Contract on ordinary shares of Sberbank of Russia OJSC SR SBRF-mm.yy 100 shares delivery 8 Delivery Contract on ordinary shares of Sberbank of Russia OJSC with quotations in SB SBER-mm.yy roubles 1 share delivery 9 Delivery Contract on ordinary shares of NK NOTK-mm.yy NOVATEK OJSC with quotations in roubles 100 shares delivery 10 Delivery Contract on ordinary shares of MTS OJSC with quotations in roubles MT MTSI-mm.yy 100 shares delivery 11 Delivery Contract on ordinary shares of Polyus Gold OJSC with quotations in roubles PZ PLZL-mm.yy 10 shares delivery 12 Delivery Contract on ordinary shares of Uralsvyazinform OJSC with quotations in roubles UI URSI-mm.yy 1,000 shares delivery 13 Delivery Contract on privileged shares of Transneft OJSC with quotations in roubles TN TRNF-mm.yy 1 share delivery 114 14 Delivery Contract on ordinary shares of VTB VB VTBR-mm.yy Bank OJSC with quotations in roubles 100,000 shares delivery 15 Delivery Contract on shares of Oil Company RN ROSN-mm.yy Rosneft OJSC with quotations in roubles 100 shares delivery Futures on Stock Market Indices 16 Contract on the RTS index with quotation in 2 US Dollars RI RTS-mm.yy index points * index value settlement 17 Contract on the RTS index – Consumer goods and retail trade - 2 US Dollars Rc RTSc-mm.yy with quotation in index points * index value settlement 18 Contract on the RTS index – Oil and Gas - 2 US Dollars Ro RTSo-mm.yy with quotation in index points * index value settlement Futures on Bonds 19 Contract on 10-year Moscow City (internal) M0 MB10-mm.yy loan bonds with quotations in roubles 10 bonds delivery 20 Contract on Moscow Region internal 6th issue loan bonds М6 МO06-mm.yy. 10 bonds delivery 21 Contract on Moscow Region internal 7th issue loan bonds M7 MO07-mm.yy 10 bonds delivery 22 Contract on Federal loan bonds issue ОФЗ-ПД 18 G018-mm.yy No.46018 10 bonds delivery 23 Contract on Federal loan bonds issue ОФЗ-ПД 20 G020-mm.yy No.46020 10 bonds delivery 24 Contract on Federal loan bonds issue ОФЗ-ПД No.46021 21 G021-mm.yy 10 bonds delivery 25 Contract on Federal loan bonds issue ОФЗ-ПД No.25061 61 G061-mm.yy 10 bonds delivery 26 Contract on Federal loan bonds issue ОФЗ-ПД 99 G199-mm.yy No.26199 10 bonds delivery 27 Contract on FGC UES OJSC 4th issue bonds
F4 FS04-mm.yy 10 bonds delivery 115 28 Contract on Gazprom OJSC 8th issue bonds
G8 GZ08-mm.yy 10 bonds delivery 29 Contract on Gazprom 9th issue bonds
G9 GZ09-mm.yy 10 bonds delivery 30 Contract on Russian Railways OJSC 6th issue R6 RZ06-mm.yy bonds 10 bonds delivery 31 Contract on Russian Railways OJSC 7th issue R7 RZ07-mm.yy bonds 10 bonds delivery Money Market
32 Contract on average rate for overnight ruble credit (deposit) on the Moscow inter-bank market MosIBOR overnight with quotations in MI MIBR-mm.yy per cent per annum 1 million roubles settlement 33 Contract on 3 month MosPrime credit rate
MP MOPR-mm.yy 1 million roubles settlement 34 Contract on cashless US dollar rate with Si Si-mm.yy quotations in roubles 1,000 US dollars settlement Commodity Market 35 GD GOLD-mm.yy Refined gold bullion contract 1 troy ounce settlement 36 Contract on Л-0,2-62 diesel fuel (GOST 305- DZ DIZL-mm.yy 82) 10 metric tons delivery 37 Contract on sugar manufactured in SU SUGA-mm.yy accordance with GOST 21-94 5 tons delivery 38 Refined silver bullion contract SV SILV-mm.yy 100 troy ounces delivery 39UR UR-mm.yy Contract on URALS oil 10 barrels settlement
Options Contracts
No. Underlying Asset Full Contract Volume Code Short Code
RTS -
RTS Financial Indicators in Accordance with Russian Accounting Standards
ACCOUNT BALANCE SHEET As of December 31, 2007 CODES Form No.1 Russian Classifier of 0710001 Management Documentation Date (year, month, 2007|12|31 day) Russian National OJSC “Russian Trading System” Stock Exchange” Classifier of 52658950 Businesses and Organization Organizations Taxpayer Identification Number Taxpayer ID 7707284328\775001001
Stock Exchange Activity Russian National Classifier of Types of 74.13.1 Type of Activity Economic Activity
Form of Incorporation / Form of Ownership 47 16
Open Joint Stock Company Russian National Classifier of Forms of Thousand roubles Ownership / Russian National Classifier of Forms of Incorporation Russian National Classifier of Unit of Measurement Measurement Units 384 Location (Address) Bldg 1, 38 Dolgorukovskaya St, Moscow, 127006
Date of Approval . . Date of Sending / . . Acceptance
120
Index Code At the beginning of the reporting period At the end of ASSETS the reporting period 1 2 3 4 I. Non-current Assets Intangible assets 110 - 1305 Fixed assets 120 1370 4780 Long-term financial investments 140 25 725954 Other non-current assets 150 2550 3941 Section I Total 190 3945 735980 II. Current Assets Inventories 210 1176 6306 including: raw materials, materials and other valuables 211 39 1275 deferred expenses 216 1137 5031 Value-added tax on acquired valuables 220 42 1444
Accounts receivable (payments expected within 12 months of the accounting date) 240 20197 62151 including: from customers 241 17408 54995 Cash Funds 260 146866 165264 Section II Total 290 168281 235165 BALANCE 300 172226 971145
Form 0710001 с.2 Line Code At the beginning of the reporting period At the end of LIABILITIES the reporting period 1 2 3 4 III. Equity and Reserves Charter Capital 410 80000 160000 Additional Capital 420 - 641119 Reserve Capital 430 3938 7720 Including: Reserve funds set up in accordance with the law 431 3938 7720 Undistributed profit (uncovered loss) 470 73819 138764 121
Section III Total 490 157757 947603 IV. Long-term Obligations Section IV Total 590 - - V. Short-term Obligations Accounts payable 620 14469 23542 including: to suppliers and contractors 621 6217 10788 payables for taxes and duties 624 2382 7147 other payables 625 5870 5607 Section V Total 690 14469 23542 BALANCE 700 172226 971145
INFORMATION ON VALUABLES INCLUDED IN OFF BALANCE-SHEET ACCOUNTS Leased fixed assets 910 16982 31988
Roman Yurievich Manager Goryunov Chief Accountant (signature (Print name) (signature ) Yevgeniya Ivanovna Gracheva (Print name)
March 29 2008
122
PROFIT AND LOSS REPORT
For the period January 1 – December 31, 2007 CODES Form No.2 Russian Classifier of 0710002 Management 12 31 Documentation Date (year, month, 2007 day)
Russian Trading System Stock Exchange OJSC Russian National Classifier of 52658950 Businesses and Organization Organizations 7707284328\775001001 Taxpayer Identification Number Taxpayer ID
Stock Exchange Activity Russian National Classifier of Types 74.13.1 Type of Activity of Economic Activity
Form of Incorporation / Form of Ownership 47 16
Open Joint Stock Company Russian National Classifier of Forms of Ownership / Russian National Classifier of Forms of Incorporation Russian National Thousand roubles Unit of Classifier of 384 measurement: Measurement Units
For the same Indicator period of the For the reporting period previous year Item Code
1 2 3 4 Income and expenses on ordinary activities
Revenue (net) from the sale of goods, products, work, services (minus value-added tax, excise duty and other similar mandatory payments) 010 378424 172305 Production costs of sold goods, products, work, services 020 (172068) (60672) 123
Gross profit 029 206356 111633 Administrative costs 040 (94669) (19813) Profit (loss) on sales 050 111687 91820 Other income and expenses Incomes from participation in other organizations 060 9907 1671 Other income 090 2109 11 Other expenses 100 (15359) (942) Profit (loss) before tax 140 108344 92560 Current tax on profits 150 (32693) (23720) Fines 180 (12) - Net profit (loss) for the reporting period 190 75639 68840 FOR REFERENCE: Permanent tax liabilities (assets) 200 6691 1506
Форма 0710002 с.2
BREAKDOWN OF INDIVIDUAL PROFITS AND LOSSES Indicator For the reporting period For the same period of the previous year
Item Code Profit Loss Profit Loss 1 2 3 4 5 6 -
Fines, penalties and forfeits levied or that have received a court decision (from the arbitration court) on their levy. 210 - - 160
Difference in rates of exchange for operations in foreign currency 240 2108 4069 10 40
Roman Yurievich Yevgeniya Ivanovna Manager Goryunov О Chief Accountant Gracheva (signature) (Print name)( (signature (Print name)
March 29, 2008 124
125
DCC Financial Indicators
ACCOUNT BALANCE SHEET As of December 31, 2007 C O D E S Form No.1 Russian Classifier of 0710001 Management Documentation Date (year, month, 2007|12|31 day) Russian National Depository Clearing Company CJSC Classifier of 31714058 Businesses and Organization Organizations
Taxpayer Identification Number Taxpayer ID 7710021150 Russian National Depository and clearing activity on the securities market Classifier of Types Type of Activity of Economic Activity 67.13.51
67 16 Form of Incorporation/ Form of Ownership Russian National CJSC / private Classifier of Forms
of Ownership / Russian National Classifier of Forms of Incorporation Russian National Thousands roubles Unit of Classifier of 384 Measurement Measurement Units
Bldg. B, 31 Shabolovka St, Moscow 115162, Russian Federation Address
Approval date Date of Sending (Approval) 126
Line At the beginning of the reporting year At the end of ASSETS Code the reporting year
1 2 3 4
I. Non-current assets
Intangible assets 110 14071 13965
Fixed assets 120 18359 20977 including: Buildings, vehicles, equipment 121 12733 16914
Other fixed assets 122 5626 4063
Construction in progress 130 714 721
Long-term financial investments 140 1204 1327 including:
Investments in other organizations 141 1204 1327
Other long-term financial investments 142 - -
Deferred tax assets 145 - -
Other non-current assets 150 - -
Section I Total 190 34348 36990 Form 0710001 p.2 Line At the beginning of the reporting period At the end of ASSETS code the reporting period
1 2 3 4
II. Current assets inventories 210 30147 55437 including: Raw materials, materials and other valuables 211 105 143
Unfinished production costs (marketing costs) 213 22041 19136 127
Finished production and goods for resale 214 400 478 Goods delivered 215 - - Deferred expenses 216 7601 35680 Other inventories and expenses 217 - -
Value-added tax on acquired valuables 220 1320 5162
Accounts receivable (payments expected in more than in 12 months after the accounting date) 230 4040 4040 including: Buyers and clients 231 - - Advances paid out 232 4040 4040 Other debtors 233 - -
Accounts receivable (payments expected within 12 months of the accounting date) 240 54076 69815 including: Buyers and clients 241 28121 32376 Advances paid out 242 4923 13317 Other debtors 243 21032 24122
Short-term financial investments 250 156574 133394 including: Investments in other organizations 251 - - Other short-term financial investments 252 156574 133394
Cash Funds 260 341895 498643 including: Cash account 261 56 57 Settlement account 262 340241 496770 Foreign currency account 263 1431 1652 Other cash funds 264 167 164
Other current assets 270 - -
Section II Total 290 588052 766491
BALANCE (total from Line 190 and Line 290 ) 300 622400 803481 Form 0710001 p.3 128
Line At the beginning of the reporting period At the end of LIABILITIES code the reporting period
1 2 3 4
III. Equity and Reserves
Statutory capital 410 368 368
Additional capital 420 9704 9704
Capital reserves 430 530 662 inlcuding: reserves made in accordance with the legislation 431 530 662
Reserves made in accordance with the constitutional documents 432 - -
Undistributed profit (uncovered loss) 470 228406 284400 inlcuding: Undistributed profit (uncovered loss) of previous years 471 228406 228406
Undistributed profit (uncovered loss) of the accounting period 472 Х 55994
Section III Total 490 239008 295134
IV. Long-term Obligations Loans and credits 510 1017 1027 Deferred tax liabilities 515 5442 4706 Other long-term obligations 520 - -
Section IV Total 590 6459 5733
V. Short-term Obligations Loans and credits 610 - - Accounts payable 620 376933 502614 inlcuding: Suppliers and contractors 621 16367 17900
Company staff 622 20820 30079
State non-budgetary funds 623 609 704
Payables for taxes and duties 624 3799 5396
Other payables 625 1303 1665 129
Advances received 626 38154 40248 Transfer of client income 627 295881 406622 participants (founding members) income disbursement 630 - -
Deferred income 640 - -
Provisions for liabilities 650 - -
Other short-term obligations 660 - -
Section V Total 690 376933 502614
BALANCE ( total from Line 490, Line 590 and Line 690) 700 622400 803481
INFORMATION ON VALUABLES INCLUDED IN OFF BALANCE-SHEET ACCOUNTS At the beginning of the reporting period At the end of Line Indicator the reporting code period
1 2 3 4
Leased fixed assets 910 41888 41888 Including leasing 911 - - 920 - - Commodity stocks and supplies in safekeeping Factored goods 930 - - Written-off debts of insolvent debtors 940 2759 2855 Security for liabilities and payments received 950 - - Security for liabilities and payments issued 960 - - Depreciation of housing stock 970 - - 980 - - Depreciation of outdoor improvements and similar facilities Intangible assets, held in trust 990
Manager Chief Accountant M. A. Laufer I. S. Yermolayeva (Signature) (Print name) (Signature) (Print name)
130
March 14, 2008 (professional accountant qualification certificate No. 048827 dd. July 14, 2000) PROFIT AND LOSS REPORT For the period January 1 to December 31, 2007 C O D E S Form No.2 Russian Classifier of 0710002 Management Documentation Date (year, month, 2007|12|31 day) Depository Clearing Company CJSC Russian National Classifier of 31714058 Businesses and Company Organizations
Taxpayer identification number Taxpayer ID 7710021150 Depository and clearing activity on the securities market Russian National Classifier of Types
Type of activity of Economic Activity 67.13.51 Form of Incorporation/ Form of Ownership 67 16 CJSC / private
Russian National Classifier of Forms of Ownership / Russian National Classifier of Forms of Incorporation Russian National Unit of Thousands roubles Classifier of 384 Measurement Measurement Units
Line Indicator For the reporting period Code For the same period of last year 1 2 3 4
Income and expenses on ordinary activities 131
Revenue (net) from the sale of goods, products, work, services (minus value-added tax, excise duty and other similar mandatory payments) 010 1072215 1292555 Production costs of sold goods, products, work, services 020 (838271) (1069286) Gross profit 029 233944 223269 Selling costs 030 (2946) (3545) Administrative costs 040 (158155) (139111) Profit (loss) on sales 050 72843 80613 Other income and expenses Interest receivable 060 16190 10849 Interest payable 070 (385) (10) Income in respect to debt securities 081 24380 3830 Expenses in respect to debt securities 082 (24748) (3926) Other income 090 1647 1583 Other expenses 100 (12004) (8661) Profit (loss) before tax 140 77923 84278 Deferred tax assets 141 38 381 Deferred tax liabilities 142 701 (4000) Current tax on profits 150 (22664) (17710) Tax sanctions 180 (1) (65)
Deferred tax assets, written off as an expense on the Profit and Loss Statement of the current reported period 181 (27) - Deferred tax liabilities, , written off as an expense on the Profit and Loss Statement of the current reported period 182 24 36 Net profit (loss) of the reporting period 190 55994 62920 FOR REFERENCE ONLY: Permanent tax liabilities (assets) 200 3410 1372 Base profit (loss) per share 201 3 3 Diluted profit (loss) per share 202
BREAKDOWN OF INDIVIDUAL PROFITS AND LOSSES
Line For the reporting year For the same period of last year Indicator code profit loss profit loss 1 2 3 4 5 6 132
Fines, penalties and forfeits levied or that have received a court decision (from the 210 5 (163) 17 - arbitration court) on their levy. Profit (loss) from previous periods 220 1 (20) - (49) Reimbursement of damages incurred by non-performance or improper performance of 230 - - - - obligations Difference in rates of exchange for operations in foreign currency payable in foreign 240 712 (510) 266 (314) currency 241 28 (65) 111 (6) Differences in rates of exchange for operations in foreign currency payable in roubles Contribution to valuation reserves 250 Х (387) Х (854) 260 33 (804) 9 (393) Bad debt write off 270
I. S. Yermolayeva M. A. Laufer Chief Manager (Signature) (Signature) (Print name) Accountant (Print name)