OREANDA-NEWS. January 17, 2008. MICEX Group, the largest integrated exchange in Russia and Central and Eastern Europe, announces today the results of the 2007 trading activities.

    * In 2007 the total volume of trading in all markets of the MICEX Group amounted to RUR 106.9 trillion (US$ 4.2 trillion), more than two times that achieved in 2006 (RUR 52 trillion or US$ 1.9 trillion). This is a record for exchange-based trading on MICEX. During the year, average daily turnover across all markets rose to RUR 431 billion (US$ 17 billion).

    * The MICEX Group confirmed its status as the largest exchange in Russia and more broadly in the CIS, Central and Eastern Europe. By the volume of exchange-based trading in securities, the MICEX Group joined the list of the world’s top 20 stock exchanges (on preliminary data it ranks 17th for the period Jan-Nov 2007).

    * Hosting more than half the global turnover in Russian securities, the MICEX Stock Exchange has become the centre of liquidity for Russian assets and the main route for international investment in leading Russian companies. The average daily trading volume in the corporate securities (equities, corporate and regional and municipal bonds and repos) reached RUR 175.4 billion (US$ 6.9 billion), accounting for 99% of the total trading volume on all Russian exchanges (90% in 2006). Trading in Russian equities on MICEX Stock Exchange rose to 71% of the total exchange-based trading in Russian stocks globally, including GDRs and ADRs (from 69% in 2006).

Alexander Potemkin, President of MICEX, said:

"The Group achieved a record-high volume of exchange-based trading as a result of implementing new exchange products and services, and thanks to the overall growth of the Russian stock market. The equity market is becoming an important tool for Russian companies to attract investments for their development and modernization. MICEX’s goal is the development of market mechanisms to set the currency’s exchange rate, and to secure the effective flow of capital into Russia's economy on the basis of advanced exchange and information technologies.”

The MICEX Group’s impressive results in 2007 were achieved thanks to the rapid development of all sectors across its exchange-based markets: the corporate securities market (which grew 2.1 times), the currency market (growth of 1.5 times), the government securities market and the money market (growth of 4.8 times) and the derivatives markets (growth of 2.5 times).

The most significant developments for the group in 2007 were:

    * In the currency market, MICEX implemented a new pattern of clearing using a central counterparty, the National Clearing Center (NCC), a specially created subsidiary bank.

    * The MICEX Stock Exchange had several highlights. It launched the Sector for Innovation and Growth Companies, to attract smaller, innovative companies; it hosted “people’s IPOs “ from Sberbank and VTB Bank; and it expanded the family of MICEX stock market indices. The number of individual investors trading on the Exchange doubled; trading in stock derivatives (the MICEX Index futures) was launched, and there was dramatic expansion in the repo market, which is being actively used to regulate the liquidity of the Russian banking system.

    * The MICEX Group continued to develop its network of regional exchanges by establishing regional exchange centers: MICEX-South, MICEX-Far East, MICEX-Volga Region and MICEX-Urals.

    * MICEX became an affiliated member of the World Federation of Exchanges (WFE) and signed agreements of cooperation with leading Asian exchanges.

Alexander Potemkin, the President of MICEX has reinforced the following areas as priorities for the MICEX Group going forward:

    * Strengthening the position of MICEX as the largest exchange in Russia, the CIS, Central and Eastern Europe, and creating an international financial center in Moscow.

    * Developing the exchange-based stock market as a mechanism for attracting investment by attracting companies to the Exchange for IPOs and listings. Measures here include the organization of trading in convertible bonds and Russian depository receipts, and the end of 100% margin requirements for trading operations.

    * Maintaining the competitiveness of the exchange-based currency market by introducing euro/US dollar instruments, launching transactions with TOM/NEXT settlement terms, improving the risk management system, and including the possibility of carrying out transactions in the currency market on the basis of a single trading limit.

    * Creating the repo market with a central counterparty and organizing new products and services for the interbank credit market.

    * Developing derivatives markets, including markets for stock futures, implementing a new risk management system, developing the market for currency, interest-rate and stock derivatives, and launching option contracts.

    * Developing the exchange-based commodity market, including the market for delivery futures on wheat

    * Improving the mechanisms of centralized clearing and settlement; developing subsidiary organizations: the NDC, the MICEX Settlement House and the NCC; implementing new procedures for clearing in exchange-based markets (the government securities market, the stock market, the derivatives market)

    * Integration of the network of regional exchanges.