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ANNUAL REPORT

RTS today Issuer relations Index projects and sale of market data in 2010 RTS markets in 2010 Relations with authorities and professional market participants International projects DCC, RTS Settlement Chamber, RTS Clearing Center Information technologies and software Corporate governance, committees and commissions Financial results of 2010 Appendices

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ANNUAL REPORT 2010

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

RTS TODAY

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ADDRESS OF THE RTS CHAIRMAN OF THE BOARD AND RTS CHIEF EXECUTIVE OFFICER
RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development Dear shareholders, clients and partners, RTS has been working in the Russian financial market for 15 years and today it is a vertically integrated holding that provides a full range of trading and post-trading services. Its core, Open Joint Stock Company Russian Trading System Stock Exchange, now confidently takes leading positions on the Russian exchange market. In the reporting year 2010, RTS completely met the shareholders expectations, and its performance indicators topped the most optimistic forecasts at the end of the year. We successfully accomplished all the tasks we were aiming to complete realizing the potential that was accumulated over many years and significantly strengthening our presence in all segments of the securities market in Russia and the CIS countries. The RTS Index, the main benchmark of the Russian stock market, posted a 22.5% increase for the year and closed at 1,770.28 points on December 30, 2010 hitting the years record high. The total trading volume across all markets of the RTS Group in 2010 rose by 94.38% to reach USD 1.55 trillion compared to 2009 figures. The largest growth on the securities market was seen in the RTS Standard segment where the securities turnover more than doubled during the year reaching USD 110.35 billion. The dynamic development of RTS Standard and the intense interest towards this market made evident the need to further upgrade technologies and expand the range of instruments. In early 2010 RTS started calculating the RTS Standard Index each second based on the prices for 15 most liquid shares trading on RTS Standard. In addition, RTS offered market participants the opportuninty to execute repo trades with the Central Counterparty including in the anonymous order book. The product offering on RTS Standard was extended by 11 stocks and fund shares of the open-end mutual investment index fund "Troika Dialog RTS Standard Index" managed by the Management Company Troika Dialog CJSC, the first ETF analogue launched in Russia. As a result, the total trading volume of the RTS cash equities market grew more than twice in 2010 as compared to the previous year, reaching USD 112.77 billion. In 2010, the share of RTS Standard in the Russian securities turnover exceeded 20%. The trading volume on FORTS, the derivatives market of RTS, added 107.14% in 2010 compared to the previous year. During 2010, as many as 117.0 million trades representing 617.5 million contracts for a total of RUB 29.4 trillion, i.e. USD 968 million, were made on FORTS.

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

RTS drammatically expanded the set of instruments offered in the index, foreign exchange and commodity segments of FORTS. The money section of the derivatives market was complemented by furures contracts on the GBP/USD exchange rate, AUD/USD exchange rate, and the first in Russia five-year futures on the USD/RUB exchange rate, and option contracts on the EUR/USD futures. Futures on raw sugar and copper as well as options on Brent oil futures and on platinum futures were added to the commodities section of FORTS. In cooperation with the SAINT PETERSBURG Exchange, we launched a gasoil futures, and together with the Moscow Energy Exchange futures on the average power price indices. In 2010, the total trading volume in the foreign exchange section of FORTS grew by 160%, whereas in the FORTS commodities section the total turnover increased by 122.4%. According to the Futures Industry Association, the RUB/USD and EUR/USD futures are among the TOP 20 of the most liquid FX derivatives in the world. In 2010, RTS continued to introduce products and services with the purpose of reducing the risks associated with trading financial instruments. In a bid to minimize investment risks, on May 17, 2010 the morning opening time for all RTS markets was moved half an hour earlier from 10.30 am to 10.00 am MSK. In December 2010, RTS started to calculate and publish the Russian volatility index that is recongnized globally as an indicator of potential recession events and a measure of the short-term market sentiments. Among the other large-scale projects implemented by the exchange in 2010 is the migration of FORTS and RTS Standard trading systems to the Plaza II protocol. As early as in 2009, RTS experts completed development of a new software platform for trading and clearing systems based on the Plaza II protocol. February 2010 saw the beginning of a stepwise transfer of the FORTS and RTS Standard trading systems to the Plaza II technology. As a result of this migration, a consolidated platform for all RTS markets and its settlement, clearing, statistics and accounting systems was created based on the internal protocol, which increased the overall efficiency of all markets and services. Starting from March 2010, a unified settlement technology has been available on FORTS and RTS Standard markets providing for a simultaneous delivery under single stock futures entered into on FORTS and cash equities trades on RTS Standard, as well as for netting a Clearing Members obligations on the cash equities and derivatives markets. In February 2010, representatives of the International Certification Company "Det Norske Veritas" carried out a recertification audit of RTS Stock Exchange. The audit included analysis of the internal documentation and regulations and interviews with the exchanges employees. Based on the results of the conducted audit experts from "Det Norske Veritas" confirmed that the quality management at RTS Stock Exchange complies with the requirements of the international standard ISO 9001:2008.

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development
Jacque Der Megredichyan Chairman of the Board of Directors, RTS Stock Exchange Roman Yu. Goryunov Chief Executive Officer, RTS Stock Exchange

In April 2010, RTS Stock Exchange became the first Russian trading floor to have its representation registered in London as a subsidiary company. The key functions of RTS Exchange Europe Limited are the promotion of products and services offered by the RTS Group among international investors, leading banks and investment companies and encouraging a positive environment for global players in the Russian securities market. Given its vigourous contributions to the development of financial markets in Ukraine and Kazakhstan and the constant presence in the very center of Europe, in 2010 RTS was more than a modern and reliable exchange platform revealing itself as a major international financial institution. Its subsidiary companies in the CIS space, Public Joint Stock Company UKRAINIAN EXCHANGE and Eurasian Trade System Commodity Exchange Joint Stock Company also reinforced their standing in the local markets significantly.

An important development for the Ukrainian securities market was the launch of derivatives trading on the Ukrainian Exchange in 2010. This helped boost the market liquidity, created a cost-efficiet and powerful risk management tool, and facilitated the introduction of new investment instruments into the market, including the UX Index futures. Compared to 2009, the overall trading volume on the Ukrainian Exchange grew nearly 9 times to hit USD 3.43 billion. The total turnover on the Eurasian Trade System Commodity Exchange increased by 28% reaching USD 513 million, including the derivatives market volumes which demonstrated an eightfold growth up to USD 73 million.

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

One of the most siginificant events of the last year was the opening of an integrated head office of RTS Group in Moscow that brought together the management and operational divisions of RTS Stock Exchange, Depository Clearing Company, Not-for-profit partnership "Russian Trading System" Stock Exchange, RTS Settlement Chamber and RTS Clearing Center. The integration of the exchange infrastructure enabled us to improve the quality of our services and to speed up the interaction between various internal divisions. During 2010 RTS won two prestigious awards. In June RTS Standard market was awarded "Best Project for the Securities Market Development" in the annual nationwide competition for the "Elite of the securities market 2009". In December during the solemn ceremony "Qualified investor 2010", initiated by IMAC Group, NAUFOR, NP "NAPF", National League of Management Companies and the Association of Regional Banks of Russia RTS Stock Exchange and "Troika Dialog" asset management company were awarded "Instrument of the Year, For outstanding achievements in developing the civilized market of qualified investors in Russia" for creating open-end mutual investment index fund "Troika Dialog RTS Standard Index", the first Russian ETF (exchange traded fund) analogue. We would like to express our gratitude to all our partners and clients for their help and support that we have enjoyed for more than 15 years. We will continue to justify your trust in the future and to do our utmost to ensure a successful development of the RTS Group. Sincerely yours, Jacque Der Megredichyan Chairman of the Board of Directors, RTS Stock Exchange Roman Yu. Goryunov Chief Executive Officer, RTS Stock Exchange

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BACKGROUND OF THE RTS GROUP

RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

The RTS Group is a vertically integrated Russian exchange holding that provides a full range of services for securities and derivatives trading. The RTS Group encompasses: Open Joint Stock Company Russian Trading System Stock Exchange, Joint-stock company RTS Clearing Center, Non-Banking Credit Organization Settlement Chamber RTS, Closed Joint Stock Company "Depository Clearing Company", Joint Stock Company UKRAINIAN EXCHANGE (Kiev, Ukraine), Central Counterparty, LLC (Kiev, Ukraine), Eurasian Trade System Commodity Exchange Joint Stock Company (Almaty, Kazakhstan), Clearing house ETS Ltd (Almaty, Kazakhstan), Open Joint-Stock Company SAINT PETERSBURG EXCHANGE. The core of the RTS Group is the Open Joint Stock Company Russian Trading System Stock Exchange. July 5, 1995 September 01, 1995 Summer 1998 Securities trading was launched on the RTS Classic Market. RTS Index, the key indicator of the Russian cash equities market, was calculated for the first time based on quotations of 13 securities from the most capitalized Russian companies. The RTS Technical Center completed its work on the new software RTS Plaza which resulted in replacement of RTS-2 terminals with the new workstation, and on September 14, 1998, RTS and RTS-2 were integrated on the basis of RTS Plaza. The introduction of the new software ensured a more reliable operation of RTS and helped implement new principles of trading organization. The RTS Index hit an all-time low of 37.74 points. RTS Settlement Chamber was set up RTS started concluding contracts with ruble settlements only via the RTS Electronic Document Circulation System on the Delivery Versus Payment basis. Not-for-profit partnership Russian Trading System Stock Exchange teamed up with Saint Petersburg Exchange, and RTS members obtained access to trading Gazprom shares on Saint Petersburg Exchange using RTS Workstations. RTS began to publish dynamically updated market data delayed by 15 minutes on its web-server.

October 02, 1998 February 17, 1999 August 02, 1999 November 1999

December 1999
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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group

1999

Based on the results of 1999, the Russian stock market was announced the most profitable cash equities market in the world, and the RTS Index grew by 194% during the year. According to Morgan Stanley Dean Witter, in 1999 it was rated first in terms of the growth rate around the world. RTS Board was launched as a bulletin board for indicative quotation of securities that are not admitted to trading on RTS Stock Exchange. Trading began on FORTS, a futures and options market of RTS. RTS Stock Exchange joins the World Federation of Exchanges as an affiliate member. The Board of Directors of Not-for-profit partnership Russian Trading System Stock Exchange made a decision to set up Open Joint Stock Company Russian Trading System Stock Exchange that began to work in November 2004. RTS Stock Exchange started to calculate the RTS Index in real time. At the nationwide competition Elite of the Securities Market RTS Stock Exchange got three nominations including the "Best Project for the Securities Market Development" (the winner was RTS itself) and Best New Instrument Promotion Project (the winners were the FORTS Derivatives Market and The Second Tier Stock Maket Development Project). Futures and options contracts on the RTS Index were introduced on FORTS. In 2007, the RTS Index futures became the most liquid instrument of the Russian securities market. Trading in blue chips on the RTS Classic Market went order-driven. The RTS Index futures was announced to win the Best New Instrument Promotion Project at the competition Elite of the Securities Market. RTS Stock Exchange launched trading in cash-settled futures contracts on gold and Urals oil that had not been available on the Russian regulated market before.

February 15, 2001 September 19, 2001

Main events of 2010 Position in the industry Main risk factors Main areas of development

October 2002 December 2003

January 2005 May 17, 2005

August 03, 2005 November 15, 2005 May 25, 2006 June 08, 2006

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors

January 29, 2007 April 05, 2007 May 23, 2007 May 27, 2007 September 17, 2007

RTS introduced RTS START, a platform for small- and mid-cap companies. The first physical delivery under a commodities futures contract in Russia was performed, namely under the diesel futures contract. The RTS commodity futures were announced to win the Best New Instrument Promotion Project at the 7th competition Elite of the Securities Market. Depository Clearing Company joined the RTS Group. The technology for executing trades with the Central Counterparty was implemented on RTS Classic Market (in the electronic trading mode) and on the RTS T+0 Market (in the trading mode with full collateral). Intraday clearing session was introduced on FORTS. The RTS Index closed at a record level of 2,487.92 points. RTS launched an evening trading session which extended the trading time until 11.50 pm MSK. The information system RTS Board was extended to include RTS Global, a project which allows Russian investors to access foreign securities in an easy and effective way. Clearing on all markets operated by the RTS Group was consolidated. As of September 2008, all trades have been cleared by RTS Clearing Center. Joint Stock Company UKRAINIAN EXCHANGE was established. The Regional Financial Centre of Almaty City (RFCA) and RTS Stock Exchange set up Eurasian Trade System Commodity Exchange Joint Stock Company (ETS) headquartered in Almaty, Kazakhstan.

October 08, 2007 Main areas of development May 19, 2008 May 26, 2008 September 16, 2008 September 24, 2008 October 02, 2008 December 10, 2008

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

January 01, 2009 February 27, 2009 March 26, 2009 March 30, 2009 April 15, 2009 April 23, 2009 May 22, 2009 June 10, 2009 June 18, 2009 July 24, 2009 August 28, 2009 October 22, 2009 November 02, 2009

RTS Stock Exchange introduced its new corporate brand. Futures-style options on futures were introduced on FORTS. Securities trading began on the Ukrainian Exchange. Trading was opened on the Eurasian Trade System Commodity Exchange (ETS), Almaty. Trading in platinum and palladium futures contracts began. Securities trading was launched on the RTS Standard Market. The Brent futures contract won the Best New Instrument Promotion Project at the 8th Elite of the Securities Market competition. The trading system of FORTS was upgraded to a new software version which resulted in a 30% increase of its throughput. The Futures Industry Association included RTS into the Top 10 of leading derivatives exchanges worldwide. A delegation from JPMorgan Chase Bank (USA) presented their 2008 Quality Recognition Award in US Dollar Clearing to RTS Settlement Chamber. The main trading session on all RTS markets (RTS Classica, RTS Standard, FORTS, T+0) was extended to 6.45 pm MSK. The trading volume in the RTS Index futures exceeded 1 million contracts. Prices for the RTS Index constituents that trade on RTS Standard were included in the calculation of the RTS Index.

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

November 05, 2009

RTSs euro/dollar and euro/ruble futures contracts won the award for "Best Innovation in Product Design 2009 Eastern Europe", given by the leading magazine in derivatives markets, Futures & Options World (FOW). RTS Stock Exchange and Saint Petersburg Exchange began implementing a joint project called QUIN (QUalified INvestors). The project is intended for trading participants who are recognized as qualified investors. NAUFOR, NSMA, MICEX and RTS signed a cooperation agreement on developing general risk management principles for trading on a stock exchange and for OTC trading, working out approximate terms and conditions of repo agreements and standards related to the execution of repo trades, and also for the purpose of developing conditions of securities lending.

December 02, 2009

December 17, 2009

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MAIN EVENTS OF 2010

RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

January 18 February 05 February 0810

RTS began to calculate the RTS Standard Index on the basis of trade prices and quotes for the 15 most liquid stocks trading on RTS Standard. A new trading platform based on the Plaza II protocol went live. Representatives of the International Certification Company Det Norske Veritas carried out a recertification audit of RTS which included the analysis of internal documents and exchanges regulations. Based on the results of the conducted audit experts from "Det Norske Veritas" confirmed that the quality management at RTS Stock Exchange complies with the requirements of the international standard ISO 9001:2008. A futures contract on the RTS Standard Index (RTSS) was launched on the derivatives market FORTS. Unified settlement technology was introduced on FORTS and RTS Standard. RTS made an announcement about setting up RTS Exchange Europe Limited, its subsidiary company based in London. The opportunity to enter into repo trades with the Central Counterparty was introduced on RTS Standard. RTS Group in cooperation with the SAINT PETERSBURG EXCHANGE launched trading in a cashsettled futures contract on gasoil. The morning opening time for all RTS markets was moved half an hour earlier from 10:30 am to 10:00 am MSK. As part of its cooperation with the Inter-Regional Association for Economic Cooperation of Subjects of the Russian Federation "Siberian Agreement", RTS launched a new benchmark index for Siberianbased companies the RTS Siberia Index. RTS Standard was acknowledged the "Best Project for the Securities Market Development" by the results of the annual nationwide competition Elite of the Securities Market 2009.

February 15 March 12 April 14 April 16 April 16 May 17 May 25

June 03
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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry

June 21 July 05 July 08 July 12 August 12 September 02

Within the framework of the cooperation between the RTS Group and Moscow Energy Exchange, trading in futures contracts on the average power price indices was launched. RTS Group relocated to a unified head office. An option contract on EUR/USD futures was introduced on FORTS. Futures-style options on refined platinum futures were introduced on FORTS. A new instrument was added to RTS Standard, namely fund shares of the open-end mutual index fund "Troika Dialog RTS Standard Index" managed by the Management Company Troika Dialog CJSC. The first in the history of the Russian market five-year futures on USD/RUB exchange rate started trading on FORTS. RTS Stock Exchange implemented a unique technology for execution of repo trades with the Central Counterparty in the anonymous order book on the RTS Standard market. Trading in options on Brent oil fututres was launched on the RTS derivatives market. Cash-settled futures contracts on raw sugar were added to the list of instruments trading on FORTS. Copper futures contracts were introduced on FORTS. The FX section of the FORTS market was complemented by futures contracts on the GBP/USD and AUD/USD exchange rates. RTS Stock Exchange won two FOW Awards for Innovation 2010 including Best innovation by an exchange in the field of product design Eastern Europe for the RTS Standard Index Futures and Best innovation by an exchange in the field of customer service Eastern Europe for the RTS unified settlement on FORTS and RTS Standard.

Main risk factors Main areas of development September 07 October 18 October 25 November 24 December 01 December 02

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

December 06 December 07 December 07

The list of instruments of RTS Standard market was supplemented by 11 securities. RTS started to compute and publish the Russian Volatility Index. At the official Qualified Investor 2010 awarding ceremony (initiated by the IMAC Group, NAUFOR, NAPF, National Management Company League, Association of Regional Banks Russia) RTS and the Management Company Troika Dialog won the award For the Remarkable Achievements in the Formation of A Civilized Market of Qualified Investors in Russia in the nomination "Instrument of the Year" for the creation of Russias first ETF analogue, namely the open-ended mutual investment index fund "Troika Dialog RTS Standard Index". Trading in the first Russian depositary receipts on RUSAL ordinary shares was started.

December 24

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POSITION IN THE INDUSTRY

RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

RTS Stock Exchange is one of the leading and largest trading platforms of the world. Despite the global financial crisis and its implications in 20082010, thanks to its unique risk management system, high-quality trade execution controls and implementation of the policy for continuous upgrading of its trading technologies, RTS Group has successfully maintained its rate of development. Even in the complex economic environment, RTS Stock Exchange has not only retained its current customers, but also increased its market share (see Figure 1). Today RTS takes the lead in providing a full package of exchange products and services in Russia, CIS countries and Eastern Europe. The overall number of RTS market participants and their customers at whose expense trades are executed totals nearly 200,000 across the globe (see Figure 2). One of the main competitive advantages of RTS is our lifetime commitment to introduction of innovative technologies and services that are sought after by the market and crucial for its development, and we still remain an exclusive provider of some of these. Thus, RTS was the first to start calculating and publishing a benchmark of the Russian cash equities market the RTS Index. Likewise, we were the first to introduce a technology that provides for execution of trades with the Central Counterparty, to integrate clearing on the spot and derivatives markets, and to create a platform for securities trading without full advance depositing of assets with settlement on T+4. Besides, RTS is the only stock exchange in Russia where the trading session lasts from 10.00 am to 11.50 pm MSK. The risk management system implemented at RTS is unique for the Russian market and has proved its reliability during the crisis of 2008. RTS is successfully sharing its experience and know-how facilitating the development of financial markets in the CIS countries. Besides, RTS is the only Russian stock exchange to have set up a subsidiary company in Europe. The launch of RTS Standard, a new cash equities market of RTS that offers trading with the Central Counterparty without full advance depositing of assets and with settlement on T+4 in 2009 allowed RTS to substantially increase its presence in one of its priority areas trading in Russian securities (see Figure 3, 4). In 2010, FORTS remained the largest derivatives trading platform in Russia. It accounts for more than 95% of all futures trades (see Figure 5). According to the Futures Industry Association, one of the worlds biggest independent associations of derivatives exchanges, FORTS is ranked among the TOP 10 leading futures exchanges worldwide for the second year running (see Figure 6). In addition, throughout the year the RTS Index and RUB/USD futures contracts were always included in the TOP 10 most liquid index and FX derivatives, whereas the EUR/USD and Brent oil futures ranked among the TOP 20 most widely traded FX and energy contracts globally. 16 / 154

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer

Figure 1. Total trading volume across all markets of the major Russian exchanges in 2010

30 % Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development 70 % RTS MICEX

Including on-exchange and OTC trades in stocks, fund shares, corporate bonds and derivatives. Exclusive of repo trades, spot FX trades, and trades executed on the government securities and money markets.
Source: RTS and MICEX market data.

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group

Figure 2. Client base across all RTS markets in 2010

250 000

200 000

Main events of 2010


customers

Position in the industry Main risk factors Main areas of development

150 000

100 000

50 000

0 01.2010 02.2010 03.2010 04.2010 05.2010 06.2010 07.2010 08.2010 09.2010 10.2010 11.2010 12.2010

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

Figure 3. Breakdown of Russian stocks turnover by major exchanges in 2010

35.3 %

RTS MICEX LSE 19.9 %

44.8 % Including on-exchange and OTC trades in stocks and fund shares, exclusive of repo trades.
Source: RTS market data (RTS Standard, RTS Classica, RTS T+0 Market), MICEX market data (Main Trading Mode and Negotiated Deals Trading Mode), and Bloombergs data on trading in depositary receipts representing Russian stocks on LSE.

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

Figure 4. Breakdown of Russian securities turnover by major exchanges in 2010

42.4 %

RTS MICEX LSE 17.2 %

40.4 % Including on-exchange and OTC trades in stocks, fund shares and corporate bonds, exclusive of repo trades.
Source: RTS market data (RTS Standard, RTS Classica, RTS T+0 Market), MICEX market data (Main Trading Mode and Negotiated Deals Trading Mode), and Bloombergs data on trading in depositary receipts representing Russian stocks on LSE.

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

Figure 5. Structure of the total derivatives turnover by Russian exchanges in 2010

4.0 %

RTS MICEX

96.0 %

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

Figure 6. Top 15 derivatives exchanges worldwide in 2010 (by turnover in terms of contracts)

Source: Futures Industry Association.

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

Figure 7. Top 15 equity index futures and options worldwide in 2010 (by turnover in contracts)

Source: Futures Industry Association.

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

Figure 8. Top 15 FX futures and options worldwide in 2010 (by turnover in contracts)

Source: Futures Industry Association.

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MAIN RISK FACTORS

RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

The policy of the RTS Group is aimed at identifying, analyzing and managing the risk exposures of RTS Stock Exchange, setting risk limits, establishing various controls and ongoing monitoring of compliance with these limits and risk management rules and procedures. RTS Stock Exchange sees credit risk, liquidity risk, market risk, operational risk and some other risks as its main risk factors. Credit risk is the risk of suffering financial losses due to counterparties default on their obligations (including Clearing Participants default). As a rule, the credit risk arises with credit operations including provision of loans to participants of settlement under trades executed on the financial markets, and with buying debt securities and with other balance sheet and off-balance sheet transactions susceptible to credit risk. RTS Stock Exchange has developed a policy and clearly defined procedures for management of the credit risk including tools for setting limits on risk concentration for selected counterparties. The companys policy on approving these limits provides for setting limits on counterparties exposure including limits on exposure to companies whose transactions are cleared in accordance with the applicable rules of proper settlement of counterparties obligations. RTS restricts risk concentration by single counterparties, issuers, credit rankings and liquidity (in respect of debt securities) as well as by groups of related counterparties and issuers. The following risk reduction mechanisms are available: ongoing monitoring of credit risk by each transaction, regular re-assessment of counterparties solvency, collateralization of the outstanding obligations through the Collateral and Contingency Funds (liquid securities, cash in rubles and US dollars, bank guarantees and guarantees issued by Clearing Participants and Clearing Members). Liquidity shortfall risk is the risk of RTS Stock Exchange experiencing difficulties in raising the amount of cash required for performance of its obligations. The liquidity risk occurs when the timing and maturity of assets and liabilities cash flows do not coincide. As a financial institution, RTS manages its liquidity risk mainly by ensuring that maturities or interest rates on assets and liabilities match or mismatch within the allowed range. Due to the diversity of operations conducted by financial firms and the inherent uncertainty of these operations, timing and maturity of assets and liabilities cash flows of financial firms do not coincide typically which can potentially increase the profitability and raise the risk of losses at the same time. In order to curb the liquidity risk, RTS ensures availability of liquid assets (in cash or as a diversified portfolio with a high quick ratio) in the amount sufficient to both address its daily liquidity obligations and withstand a period of liquidity stress. The exchange also maintains a diversified and stable structure of funding sources and adjusts the structure of assets and liabilities to reflect the market situation. 25 / 154

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

Market risk is associated with open positions made up from interest rates, foreign exchange and equity financial instruments that are influenced by general and specific market movements and the volatility of prices. Market risk can be controlled by keeping it within the allowed range and optimizing return on investments with regard to the risk associated with them. RTS Stock Exchange manages market risk by setting limits on open positions in respect of financial instruments, interest rates, foreign currencies and settlement dates of the financial instruments. The exchange monitors if these limits are complied with on a regular basis. Foreign exchange risk means the impact that changing foreign exchange rates may have on the financial position and cash flows of the company. Generally, FX risk arises from open FX positions. This type of risk can be minimized by implementing a well-thought policy that takes into account the balance during trading and by introducing a system of cash-settled futures. FX risk mitigation was largely facilitated by the launch of a ruble-denominated RTS Standard Index as an alternative to the RTS Index that is calculated in US dollars, the improved methodology of the RTS Index calculation and the switch to using globally recognized currency exchange rates provided by Thomson Reuters. Industry risks The core business of RTS Stock Exchange is organizing trading in securities and derivatives which exposes it to the risks associated with continuous market slumps, adverse market trends, or delisting of instruments due to low liquidity, and lack of economic drivers for participants of the on-exchange and OTC market, and insufficient/excessive trading activity on the cash equities and derivatives markets. These risks can be mitigated by adding new services for market participants, improving the reliability of the trading system under peak load, establishing intraday price fluctuation limits for each instrument in order to smooth out volatility spikes in line with the regulations, and ensuring a flexible pricing model for various categories of clients, as well as by cross-selling of products and services, and encouraging clearing of OTC trades by the RTS Group entities.

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

Infrastructure risks RTS Stock Exchange is a technologically advanced company whose business depends on the efficient, continuous and safe functioning of the trading system, on the compatibility and smooth interaction of the trading system with the client-side systems, as well as on the reliability of the connection/market data channel and adaptability of the software, etc. In order to address these risks, RTS employs the following mechanisms: continuous efforts for systematic improvement of hardware performance; software upgrades, platforms sophistication; development of and compliance with procedures for emergency situations (backup data centers, independent power supply that can support the system for a long time) in case of malfunction and/or failure of technical facilities; publishing a description of the systems operation with requirements to clients hardware and software; a front office that provides an opportunity to correct market participants errors (help desk); hiring highly qualified specialists with relevant experience. Political and macroeconomic risks The principal place of RTSs business is located in the Russian Federation. RTS Stock Exchange operates in full compliance with the applicable Russian legislation. Therefore, the company is subject to risks associated with changes in the political and economic situation in the country and market regulators activities. Changes in the political environment as well as modifications (reforms) of the state economic policy may result in a decreased GDP, high inflation, growing budget deficit and foreign debt, dramatic shifts in the exchange rate of ruble against major world currencies, and lead to a restriction or expansion of rights of groups of companies and individuals related to trading on the cash equities and derivatives markets. All these factors may cause the public welfare to deteriorate, increase unemployment, change customer preferences and decrease the interest towards exchange products and services. The mechanisms for reduction of these risks include ensuring that the company remains fully compliant with the current provisions of the applicable Russian law and cooperates with the legislative and executive authorities within the framework of public professional organizations, and stays abreast of all law amendments, as well as educates the public about professional activities of RTS.

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

Reputation risks This group of risks is largely connected with the public activities of RTS and protection of copyright and related rights. In order to minimize these risks, RTS pursues a well-balanced policy on public appearances, adequately reflects the results of its activities in mass media, discloses information on its activities to a sufficient extent, provides for registration and maintenance of copyright and related intellectual property rights both in the territory of the Russian Federation (registration of exclusive trademark rights in the Russian jurisdiction) and abroad (RTS has applied for registration of the RTS Exchange trademark in the United Kingdom, United States and EU for trademark protection in the financial markets class). International activities risks (Country risks) RTS is carrying out a number of investment projects abroad. It holds various stakes in several companies (in Ukraine and Kazakhstan). Possible changes of the political landscape, amendments to the local legislation, deteriorating social and economic conditions may adversely affect the further development of these projects. These risks may be reduced by ongoing monitoring of the situation in the countries where RTS and its subsidiaries operate and by timely and adequate response to changes.

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MAIN AREAS OF DEVELOPMENT

RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

RTS prioritizes active development of its markets both on the derivatives side (rendering services that directly facilitate conclusion of contracts which are derivatives on various underlying assets) and on the cash equities side (organization of securities trading) because a consistent development of the derivatives market is predicated by a steady development of the cash equities market where the underlying assets are trading. A shrinking cash equities market may slow down the growth of derivatives trading causing stagnation in this market. RTS Group is a holding that includes the exchange itself and infrastructure companies providing services on financial and commodity markets. The development strategy of RTS is based on five key strategic goals. Accomplishing these goals will allow RTS Group to become a powerful player on the global financial market, a leader in various segments of exchange business with a capacity to service clients both in Russia and in any other jurisdiction. RTS Group has been actively contributing to the implementation of the Concept adopted by the Russian government for the Development of Moscow as an International Financial Centre (IFC). RTS plans to develop and propose the following projects shortly: model of the IFCs exchange and clearing infrastructure; model of a centralized accounting system as a key element of the IFC with participation of the existing settlement depositories; models for promoting Moscow as an IFC among foreign investors. Currently RTS is one of the major exchanges operating on the regulated European market and is willing to expand its presence to other CIS countries as well as to Central and Eastern Europe and to rank among the TOP 10 exchanges globally. To this end, RTS is planning to put efforts into: attracting new customers including foreign ones to the Russian securities market; raising performance and reliability of the trading and settlement complex; launching a number of projects in cooperation with major international exchange groups; strengthening its position in the CIS markets and boosting the liquidity of the existing regional platforms. Taking the lead in derivatives trading in Eastern Europe, RTS at the same time remains a universal exchange aiming to become a leading organizer of trading in various market segments. Therefore RTS is seeking to increase its share in the Russian stock market up to 50% by adding more stocks to the list of instruments offered for trading on RTS Standard as well as by launching and developing new markets and services, in particular, the anonymous market for execution of repo trades with the Central Counterparty. In addition, RTS intends to remain the unrivaled leader in the derivatives segment and to extend its product line with FX, commodity and interest rates contracts as well as with totally new instruments for the Russian and CIS markets. 29 / 154

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RTS today Address of the RTS Chairman of the Board and RTS Chief Executive Officer Background of the RTS group Main events of 2010 Position in the industry Main risk factors Main areas of development

Since RTS Group is a vertically integrated exchange holding, improving the efficiency of its operation on the whole and of its corporate governance in particular is a key objective of the stockholders and management team of RTS. To attain this objective, RTS Group has developed an action plan for upgrading its corporate structure. We believe that RTS needs to retain a diversified structure of its share capital and continue operating under control of market participants. Besides, RTS plans to put efforts into optimizing the corporate governance system and increase the performance of the management team. RTS has to remain a highly capitalized and financially stable organization capable of ensuring proper operation of the infrastructure irrespective of any external factors. For this purpose, RTS is planning to implement a raft of measures aimed at: upgrading the risk management system employed by the RTS Group; optimization of the fee policy.

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Issuer relations

ISSUER RELATIONS

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ISSUER RELATIONS

Issuer relations

For RTS as for any other stock exchange atttracting issuers is an important field of business. In this area RTSs efforts are centered around: designing and launching new products and services for issuer companies; improving services rendered to issuer companies on an ongoing basis; promoting its products and services targeted at issuer companies; attracting new issuer companies; effectively cooperating with issuer companies when securities are being admitted to trading on the exchange and later on; monitoring the compliance of securities admitted to trading on the exchange with legal requirements and the rules set by the Exchange. These are the responsibilities of the listing department of the RTS Stock Exchange. LISTING RESULTS IN 2010 Instruments In 2010, the Exchanges List of Instruments was supplemented by 41 new securities (see Figure 9). However, the total number of securities on the Quotation List decreased by 22 securities in absolute terms (a decrease by less than 5%). In 2010, 15 new securities were added to the quotation lists of RTS. Two out of those had not been available before on the Russian market. These instruments have already demonstrated good liquidity levels: the first Russian ETF analogue open-end mutual index fund "Troika Dialog - RTS Standard Index" managed by the Management Company Troika Dialog CJSC; Russian Depositary Receipts on ordinary shares of RUSAL.

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Issuer relations

Figure 9. Changes in the list of instruments in 2010

600 securities on the list as of December 31, 2009 500 number of securities, units securities on the list as of December 31, 2010 securities added to the list in 2010 (new instruments) securities taken off the list in 2010 300

400

200

100

0 total stocks bonds fund shares

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Issuer relations

Figure 10. Number of securities on the list of instruments, 2004-2010 (by security type)

700 stocks 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 bonds fund shares RDRs

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Issuer relations

Figure 11. Number of securities on the list of instruments, 2004-2010 (by list sections)

700 on quotation lists 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 total

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Issuer relations

Figure 12. Securities added to removed ratio

new securities added to the list securities removed from the list 2010

2009

2008

2007

-150

-100

-50

0 number of securities, units

50

100

150

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Issuer relations

Figure 13. Securities upgraded to downgraded ratio

securities moved up the list securities moved down the list 2010

2009

2008

2007

-30

-20

-10

0 number of securities, units

10

20

30

40

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Issuer relations

Figure 14. Breakdown of grounds for removal of securities from the list of instruments in 2010

1% 1% 2% 2% 3% 3% 3% maturity (bonds) at the request of the issuer/asset management company termination of the agreement on admitting securities to trading dissolution of investment fund securities redemption (convertion) assumed violation of rights and/or interests of securities holders bankruptcy of the issuer failure to meet admission rules (issuer, securities) liquidation of the issuer as a result of restructuring repeated breaches of law by the issuer failure to provide information

8%

51 % 11 %

15 %

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Issuer relations

Figure 15. Split of issuers whose shares are on the exchanges list of instruments by industries (in terms of number of companies represented)*

3%

3% 5%

24 % 7% trade power food transport telecom finance chemical mining metallurgy engineering other

8%

12 %

9%

9% 10 % 10 %
* Data as of December 31, 2010

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Issuer relations

Figure 16. Split of issuers whose shares are on the exchanges list of instruments by industries (in terms of market capitalization)* 1 %1 % 2 %2 %

2% 3% 4% trade telecom chemical power metallurgy finance mining transport engineering food other

10 % 48 %

13 %

14 %

* Data as of December 31, 2010

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Issuer relations

Nevertheless, the tendency towards a reduction in the number of instruments on the exchanges quotation lists that was first seen in 2009 still exists (see Figure 11). In absolute terms, the decrease totaled 5 securities. The number of securities on the Exchanges list of instruments began to decrease in 2008 and continued to drop over 20092010 (see Figure 10). In 20082010, the number of securities that were removed from the list of instruments exceeded that of those added (see Figure 12). A similar trend was seen in the exchanges quotation lists in 20092010 (see Figure 13). The main grounds for removing securities from the exchanges list of instruments in 2010 were: bonds reaching maturity 51 %; initiative of the issuer/asset management companies (termination of agreements with the exchange, submission of relevant applications) 26 % (see Figure 14). The notable activity on the part of issuers aimed at having their securities taken off the exchanges list of instruments is attributable to: a tendency towards consolidation of shareholders capitals (majority shareholders tend to accumulate larger stakes and groups of companies consolidate their shares); adoption of federal law On amending the federal faw On the Securities Market and specific legislative acts of the Russian Federation No. 264-FZ dd. October 04, 2010 and approval of Order No. 10-75/ pz-n dd. December 09, 2010 by the FFMS of Russia that establish a procedure for issuers seeking to obtain relief from disclosure obligations in respect of their securities. Most IPOs announced by issuers in 2010 were cancelled (postponed) due to the high volatility of financial markets which also had a negative impact on the inflow of new financial instruments. With regard to industry classification of issuers, power companies (in terms of the number of companies represented Figure 15) and extracting companies (in terms of market capitalization Figure 16) continue to take the lead. Food and transport industries are still underrepresented. Improving Services for Issuer Companies In January 2010, RTS deployed an electronic document circulation system accessible via the Internet (Issuers Personal Account). It is designed for submission of issuers and asset managing companies documents as required by the Russian law and Rules for admission of securities to trading on RTS markets. This system allows for the electronic digital signature (EDS) usage and transfer of data via an encrypted communication channel using a secure SSL connection.

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Issuer relations

Implementation of the EDS system allows the exchange to: require less documents to be submitted in hard copy and later cancel documents submission in hard copy (in case of using EDS), which will decrease the time and material expenses of issuer/management companies of mutual investment funds on document submission to the Exchange and cut the Exchanges costs of paper documents handling and storage; optimize and intensify the processing of information provided to RTS; automate control over the issuers compliance with the RTS information disclosure requirements. In November 2010, RTS launched the Compliance Control System, a new online service designed for asset management companies and issuers. This system enhanced the functionality of the existing customer service Issuers Personal Account. Now, asset management companies and issuers whose securities are adimitted to trading on RTS can do the following in a realtime mode: verify if securities comply with the main requirements of the Russian law and the Rules for Admitting Securities to Trading on RTS markets established for securities maintained in the list of instruments admitted to trading on the exchange; monitor the turnover in their securities; estimate the prospects for their securities to be upgraded to a Quotation List of a higher level; check if they need to submit any documents to the exchange. Promoting products and services targeted at issuers In order to promote its products and services targeted at issuers, RTS focuses on: Participation in public events dedicated to cash equities market functioning and attracting investments. In 2010, the Listing Department team was very active in regional events arranged as part of a larger project on improving the populations financial literacy. Thanks to its well established business contacts with the regional divisions of the FFMS of Russia and the local Chambers of Commerce and Industry and with their support RTS holds both public events and individual meetings with business executives.

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Issuer relations

Holding events of its own for issuer companies. In November 2010, the annual working meeting with issuer companies took place. Annual meeting guests: listened to a presentation of the research carried out by Standard & Poors, a partner of RTS, studying the transparency of the largest public companies in Russia in 2010; took part in a workshop session dealing with preparation of annual reports where the latest trends in preparation and promotion of annual reports were discussed and various aspects of transparency were highlighted; the winners of the 13th Annual Reports Competition arranged by the RTS Stock Exchange were awarded. Annual Reports Competition In 2010, the exchange held its 13th Annual Reports Competition which had already become a traditional issuers event. This year 34 companies won awards in 13 nominations. A record number of 138 Russian and foreign companies participated in the competition representing virtually all economy sectors: oil-extracting, metallurgy, finance, telecommunications, consumer & retail, etc. Publishing advertising and guidance materials for issuer companies. Publishing feature articles and expert comments in business mass media. Active PR support of services offered by RTS to issuer companies. Plans for 2011 New Opportunities In 2009, amendments to Federal Law No. 39-FZ On the securities market dd. April 22, 1996 came into force allowing securities of foreign investors to be publicly offered and traded in the Russian Federation. When the regulatory background governing the public offering and trading of foreign investors securities in the Russian Federation is in place in 2011, the range of RTS's instruments will be expanded. Foreign issuers relations were actively developed in 2010 and it will remain one of our priorities in 2011.

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Understanding the interest towards events aimed at promoting exchange services for issuers and professional securities market participants as well as for private investors where employees of the Listing and OTC Market Department took part as speakers,

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Issuer relations

since 2011 RTS Stock Exchange has been arranging events of its own for the issuer companies on the premises of its new offices. More than 10 various events have been scheduled for the first half of 2011. Risks and their minimizing The enactment of some legislative regulations including those purposed for toughening the requirements to financial market players may result in a lower number of public companies in Russia. These new regulations include: federal law On amending the federal law On the securities market and specific legislative acts of the Russian Federation No. 264-FZ dd. October 04, 2010 that broadens the scope of disclosable information significantly and establishes a procedure for issuers seeking to obtain relief from disclosure obligations in respect of their securities; federal law On counteracting illegal usage of insider information and market manipulation No. 224-FZ dd. July 27, 2010; federal Law On consolidated financial statements No. 208-FZ dd. July 27, 2010 that requires all companies whose securities have been admitted to trading on a stock exchange to prepare and disclose IFRS reports. Factors that facilitate growth in the number of securities admitted to trading on RTS markets: stabilization of global economy and, as a result, recovering Russian economy; revival of the Russian IPO market; return of foreign capital to the Russian stock market; protectionism policy pursued by FFMS of Russia to facilitate development of the national stock market, creation of an international financial center in Russia; development of new investment products for the stock market; improving liquidity of the RTS cash equities market thanks to new technological solutions, cooperation with professional market participants, a flexible rate policy and a convenient settlement infrastructure.

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Index projects and sale of market data in 2010 Index projects in 2010 Market data sales in 2010

INDEX PROJECTS AND SALE OF MARKET DATA IN 2010

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INDEX PROJECTS IN 2010

Index projects and sale of market data in 2010 Index projects in 2010 Market data sales in 2010

In 2010, the family of RTS indices was supplemented by two new indices. In January 2010, RTS Stock Exchange started calculating the RTS Standard Index based on ruble prices of 15 most liquid local stocks trading on RTS Standard. This benchmark is updated each second. In May 2010, RTS Stock Exchange started publishing its first regional index RTS Siberia Index tracking Siberian-based enterprises. Regional indices are made up from stocks of companies whose main business is concentrated in the relevant federal districts of the Russian Federation. RTS Siberia Index is the first regional indicator introduced in the Russian market. It was designed to help all kinds of investors estimate the investment attractiveness and rate of economic development of Siberia. On May 17, 2010, RTS began to calculate its indices half an hour earlier, i.e. at 10:00 am to reflect the same changes in its trading hours. This enables the investors to start monitoring the situation on the Russian stock market half an hour earlier. In the autumn of 2010, RTS amended the methodology of RTS indices calculation in order to increase the precision with which the free float is determined to 1%. This was achieved thanks to the improved transparency of the information disclosure by the issuers. Within the framework of cooperation with the Ukrainian Exchange RTS was actively sharing its experience with specialists of the Ukrainian Exchange that may be relevant for calculation of the UX Index, constituents list preparation and for taking into account corporate events.

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MARKET DATA SALES IN 2010

Index projects and sale of market data in 2010 Index projects in 2010 Market data sales in 2010

Early in 2010, RTS connected to the global network BT Radianz which helped us reach out to a wider range of potential market data subscribers and simplify the connectivity to RTS Stock Exchange for market participants located anywhere in the world. Significant work has been done together with information agencies to improve the quality of RTS market data representation at data terminals. In 2010, RTS Stock Exchange held a series of specialized workshops for customers of the major information agencies both in Russia and abroad to highlight the issues related to data search and peculiarities of RTS markets operation. The work on implementation of a globally recognized protocol for dissemination of market data - FAST (FIX Adapted for Streaming) was continued. Last year such information agencies as Bloomberg and CQG moved to using the FAST protocol. At present, we continue to actively switch other information agencies to the new data protocol. RTS participated in events arranged by the FISD. This association brings together the largest stock exchanges, brokers, information agencies, investment banks and other financial institutions that are interested in moving forward dissemination, management and usage of financial information. FISD events provide a good opportunity for sharing industry experience and finding new business partners.

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RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

RTS MARKETS IN 2010

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RTS MARKETS: 2010 IN REVIEW

RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

In 2010, the total trading volume on the RTS Group markets increased by 94.38% compared to 2009 figures to reach USD 1.55 trillion. The stock market turnover grew by 108.7% to hit USD 112.77 billion, whereas the trading volume on the derivatives market FORTS grew by 111.36% to reach USD 946.1 billion. In 2010, the RTS Index went up by 22.5% (see Figure 17) to close at the years high of 1,770.28 points at the end of the trading session on December 30, 2010. The years low for the RTS Index 1,226.57 points was seen on the 25th of May. Table 1. Trading volume on RTS Stock Exchange markets, million US dollars
2009 Total trading volume FORTS Securities trading volume Reported OTC trades including RTS Board 799 704 456 144 54 173 289 278 109 2010 1 554 437 964 102 112 772 477 419 145 Change, % 94,38 111,36 108,17 65,04 32,76

In 2010, the RTS Standard Index tracking rouble prices of local blue chips added 19.1% to reach 11,393.51 (9,568.83 as of December 31, 2009). It hit the years low of 8,176.05 points on May 25, and saw the years high of 11,403.82 points on December 23, 2010. The securities market growth at the end of the year was accompanied by a lower market volatility, with the Russian Volatility Index (RTSVX) dropped 32.5% to 26.29 points (38.97 points as of December 31, 2009). Last year RTS-2 Index, the second tier stock market indicator, soared by 56.8% to end up at 2,237.93 points. In 2010, RTS-2 Index reached its minimum of 1,461.25 points on January 11, and its maximum on December 27 was 2,250.60 points. In 2010, the largest growth was demonstrated by the consumer & retail sector: The RTS Consumer & Retail Index gained 82.5%, whereas the oil & gas sector showed the smallest growth, with the RTS Oil & Gas Index adding 5.9%.

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RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

Table 2. RTS Indices Family


Index RTS Index RTS Standard Index RTS-2 Index RTS Metals & Mining Index RTS Oil & Gas Index RTS Consumer & Retail Index RTS Industrial Index RTS Telecom Index RTS Finances Index RTS Electric Utilities Index RTS Siberia Index Russian Volatility Index 2010 1 770,28 11 393,51 2 237,93 355,8 196,97 440,71 211,17 264,43 452,95 273,55 999,95 26,29 2009 1 444,61 9 568,83 1 427,28 228,97 186,02 241,42 135,02 190,31 369,61 204,3 752,56 38,97 Change, % 22,50 19,10 56,80 55,40 5,90 82,50 56,40 38,90 22,50 33,90 32,90 -32,50 High 1 770,28 (30.12.10) 11 403,82 (23.12.10) 2 250,60 (27.12.10) 356,38 (29.12.10) 202,34 (15.04.10) 440,71 (30.12.10) 211,55 (27.12.10) 268,12 (23.12.10) 460,41 (24.12.10) 299,05 (13.04.10) 1 021,84 (14.04.10) 55,17 (25.05.10) Low 1 226,57 (25.05.10) 8 176,05 (25.05.10) 1 461,25 (11.01.10) 226,54 (1.07.10) 146,9 (25.05.10) 245,1 (13.01.10) 134,24 (26.01.10) 183,24 (25.05.10) 298,51 (25.05.10) 204,99 (15.02.10) 774,56 (12.02.10) 20,83 (26.10.10)

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RTS markets in 2010 RTS markets: 2010 in review

Figure 17. RTS Index dynamics in 2010

1900

RTS Stock Market FORTS: futures and options market

1800 1700 1600 points 1500 1400 1300 1200 1100


11.01.2010 11.02.2010 11.03.2010 11.04.2010 11.05.2010 11.06.2010 11.07.2010 11.08.2010 11.09.2010 11.10.2010 11.11.2010 11.12.2010

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RTS markets in 2010 RTS markets: 2010 in review

Figure 18. Year-on-year growth of turnover on the stock market of RTS

120 000

RTS Stock Market FORTS: futures and options market


100 000

80 000 million USD

60 000

40 000

20 000

0 2009 2010

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RTS STOCK MARKET

RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

One of the key priorities of RTS in 2010 was further development of technologies implemented on RTS Standard, the new cash equities market of RTS launched in 2009. Thanks to the introduction of unique services and customer support on this platform, RTS Standard and the securities market of RTS as a whole doubled in 2010. These positive developments drove the trading volume higher. The total trading volume on the securities market more than doubled in 2010 as compared to 2009 (see Figures 18, 19). This was predominantly due to the growing trading volumes on the RTS Standard platform (see Figure 20). In addition to the overall turnover growth RTS managed to increase its share in the on-exchange blue chips turnover (see Figure 21 and Figure 22). The most significant market share increase was achieved by RTS in respect of ordinary stocks of Sberbank: RTSs share versus MICEX more than doubled (232%) reaching 40.3% of the turnover in Sberbank stocks on MICEX. The success of the new platform is attributable to implementation of the following initiatives: creating new opportunities for trading participants on RTS Standard; upgrading technologies; integration with the FORTS market; aggressive marketing policy; introduction of new instruments on RTS Standard. One of the key improvements is the opportunity to execute repo trades with the Central Counterparty offered on RTS Standard. This enables participants of the securities market to lend and borrow cash and securities without running counterparty risks and at the same time increases the range of counterparties on the repo market. Market participants were also offered an opportunity to extend their repo trades enetered into with any of the market participants without incurring additional funding costs and with settlement guaranteed by the Central Counterparty. Obligations arising from repo trades are netted with those under indirect and direct trades executed on RTS Standard. Since the spring of 2010 repo trades can be executed based on direct orders, and starting from September 2010 a unique technology for execution of repo trades with the CCP based on indirect orders has been available. The launch of the indirect repo market further broadened the customers opportunities to effect risk-free lending and borrowing of cash and securities and brought the Russian repo market to the new level of development.

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RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

Figure 19. Year-on-year growth in terms of number of trades on the stock market of RTS

9 000 000 8 000 000 7 000 000 6 000 000 trades 5 000 000 4 000 000 3 000 000 2 000 000 1 000 000 0 2009 2010

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RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

Figure 20. RTS Standard turnover dynamics in 20092010

350 000 300 000 250 000 million rubles 200 000 150 000 100 000 50 000 0
0 0 0 01 .2 12 .2 0 0 0 9 9 9 9 9 9 9 9 9 0 0 0 0 0 01 01 01 01 01 00 00 00 00 00 00 00 00 00 01 01 01 01 01 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 09 10 .2 05 06 07 04 05 06 07 08 09 10 11 12 01 02 03 04 08 11 01 0

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RTS markets in 2010 RTS markets: 2010 in review

Figure 21. Growth of RTSs share in selected blue chips turnover on MICEX in 20092010, %

45 %

RTS Stock Market


40 %

2009 2010

FORTS: futures and options market

35 % 30 % 25 % 20 % 15 % 10 % 5% 0% GAZPS GMKNS LKOHS ROSNS SBERS

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RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market

Figure 22. Growth of RTSs share in selected blue chips turnover on LSE in 20092010, %

35 % 30 % 2009 2010 25 % 20 % 15 % 10 % 5% 0% GAZPS GMKNS LKOHS ROSNS

FORTS: futures and options market

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RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

Before the introduction of the indirect repo market RTS Stock Exchange changed the settlement time for trades executed on RTS Standard from 9.30 am to 5.00 pm at the request of market participants. Moving settlement to a later time enabled market participants to avoid posting cash and securities for settlement until the delivery day itself. With the option to credit cash and securities for settlement on the delivery day, market participants are able to execute buy/sell transactions in direct trading mode with settlement on the actual trade date. Trades settled on T+0 can be entered into with any counterparties until 4.00 pm that day. From 4.00 pm to 4.30 pm, direct trades with settlement on T+0 can only be made between sections of the registers opened for the same Clearing Member. At the request of market participants, in December 2010 the list of instruments traded on RTS Standard was extended to include 11 securities more. In addition, in August 2010 trading started in fund shares of open-end mutual index fund "Troika Dialog RTS Standard Index" managed by the Management Company Troika Dialog CJSC, the first ETF analogue launched in Russia. Speaking of other cash equities platforms of RTS, its worth mentioning a successful market making initiative carried out by RTS in 2010. As a result 16 new market maker agreements were signed, and at the end of 2010 RTS had 37 effective market maker agreements with 21 market makers in various trading modes of RTS. Under these agreements market makers are to maintain quotes for 40 securities of 38 issuers, a total of 97 positions. The existing market maker agreements provide for maintenance of two-sided quotes for stocks of issuers representing a wide range of industry sectors: oil and gas, electric power, banks, transportation, agriculture, mechanic engineering, construction, medicine, etc. Three market makers, namely VTB Capital, Troika-Dialog and Renaissance Capital were maintaining the market for a brand new instrument RDRs on the stocks of RUSAL and created the initial liquidity. Thanks to their active participation, this instrument may be shortly put on the A1 quotation list.

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RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

Table 3. Best sellers in 2010*


Ticker Company name, type of shares Sberbank, ordinary Gazprom, ordinary Sberbank, preferred OJSC "MMC "NORILSK NICKEL", ordinary JSC VTB Bank, ordinary OAO LUKOIL, ordinary OJSC OC Rosneft, ordinary OJSC "Rostelecom", preferred Surgutneftegas, preferred JSC "RusHydro", ordinary Trading volume, USD 155 380 869 021 111 902 528 168 59 787 983 873 36 386 502 235 34 641 064 440 33 041 115 952 18 286 476 148 12 533 579 488 10 885 585 798 9 988 261 214 Share, %

1 2 3 4 5 6 7 8 9 10

SBER GAZP SBERP GMKN VTBR LKOH ROSN RTKMP SNGSP HYDR

27,59 19,87 10,61 6,46 6,15 5,87 3,25 2,23 1,93 1,77

* taking into account all trading modes, including OTC transactions.

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RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

Table 4. Top gainers in 2010


Ticker KRSG JNOSP ROST NKNCP WBDF Company name, type of shares Krasnoyarsk HES, ordinary Slavneft-Yaroslavnefteorgsintez, preferred OJSC "ROSINTER RESTAURANTS HOLDING", ordinary OAO "Nizhnekamskneftekhim", preferred Wimm-Bill-Dann Foods OJSC, ordinary Closing price, USD 6,28 0,375 25,5 0,435 124 Change, % 423,33 341,18 218,75 190,00 175,56

Table 5. Top losers in 2010


Ticker SITR APTK SIBN NMTP ROSN JSC SITRONICS, ordinary OAO PHARMACY CHAIN 36.6, ordinary JSC Gazprom Neft, ordinary PJSC Novorossiysk Commercial Sea port, ordinary OJSC OC Rosneft, ordinary Company name, type of shares Closing price, USD 0,0200 3,7000 4,1950 0,1350 7,1937 Change, % -40,3 -35,7 -24,4 -18,2 -14,6

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FORTS: FUTURES AND OPTIONS MARKET

RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

In 2010, the trading volume on the RTS derivatives market more than doubled to reach RUB 29.35 trillion compared to RUB 14.2 trillion in 2009. A total of 116.95 million trades representing 617.46 million contracts were executed. At the end of 2010, the open interest on FORTS stood at 4.056 million contracts, or RUB 141.6 billion in terms of notional value (see Figure 23). The largest growth was seen in the FX and commodities sections of the derivatives market. In 2010, several sought-after instruments of key importance were introduced in these segments: AUD/USD and GBP/USD futures contracts, five-year RUB/ USD futures, options on EUR/USD futures as well as futures on copper, raw sugar and Brent oil and options on platinum futures. In cooperation with the Moscow Energy Exchange futures on the average power price indices, and together with the Saint Petersburg Exchange futures contracts on summer gasoil were launched. Out of all contracts trading on FORTS the RTS Index futures remaind the leading product in terms of liquidity (this contract accounted for 69.58% of the total turnover or RUB 20.4 trillion) followed by the RUB/USD futures (8.49%), EUR/USD futures (5.48%), and futures contracts on Sberbank shares and Gazprom shares. The top liquid options in 2010 were the option contracts on the RTS Index futures (4.08%). Table 6. FORTS. Results of the year
2010 Total trading volume, billion rubles Trading volume in futures, billion rubles Trading volume in options, billion rubles Number of trades made during the year Average daily number of trades Average daily trading volume, billion rubles Average daily open interest, billion rubles Average daily open interest in futures, billion rubles Average daily open interest in options, billion rubles 29 350,43 27 986,18 1 364,26 116 958 921 471 609 118,35 172,40 114,58 57,81

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RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

Table 7. FORTS dynamics in 20012010


Year Trading volume, billion rubles 7,95 94,87 214,04 337,64 687,06 2 708,54 7 513,28 11 157,67 14 169,22 29 350,43 Open interest as of the end of the year, billion rubles 0,51 1,19 2,34 8,17 21,15 84,67 141,71 38,13 84,56 141,60 Trading volume, million contracts 2,06 22,06 33,76 42,56 53,28 89,65 144,92 239,83 474,44 617,46 Open interest as of the end of the year, ths. contracts 82,77 292,43 338,77 992,59 1 226,22 2 515,80 3 222,32 1 761,93 3 090,48 4 056,35 Number of trades, ths. trades 54,97 546,30 901,01 1 522,38 1 899,87 5 021,63 11 683,36 28 732,61 74 289,12 116 958,92

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Another important milestone marking the last year is the start of calculation and publishing of the Russian Volatility Index (RTSVX) which took place on December 07, 2010. The Russian Volatility Index is computed based on the current quotes for options on the RTS Index futures every 15 seconds. This is a totally new indicator for the organized securities market in Russia. It is designed to reflect the market participants speculations about the potential movements of the RTS Index and, therefore, about the entire Russian securities market. It completes the RTS indices family as a unique benchmark depicting the situation on the Russian securities market. Similar indices are calculated by the worlds leading exchange platforms and are of interest to both professional market participants and individual traders. There are plans to launch a futures contract on the Russian Volatility Index shortly. Throughout 2010, FORTS remained the leading trading venue for futures and options in Eastern Europe.

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RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market

Figure 23. FORTS dynamics in 20012010

35 000 trading volume, billion rubles 30 000 trading volume, billion rubles 25 000 20 000 open interest volume at the end of the year, billion rubles

160 140 120 100 80

FORTS: futures and options market

15 000 60 10 000 5 000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 40 20 0

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open interest, billion rubles

RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

According to the report prepared by the analytical agency Futures and Options Intelligence (FOI) for 2010, FORTS was ranked first among the worlds leading derivatives exchanges by the volume of trading in futures contracts on single stocks. For the 12 months of 2010 the trading volume in single stock futures totaled 226,504,533 contracts. The second largest turnover in single stock futures was seen on Eurex where it amounted to 202,188,048 contracts in 2010. NYSE Liffe London was placed in the third line with a total turnover in single stock futures of 183,614,306 contracts. Table 8. Top 10 leading exchanges in terms of single stock futures turnover in 2010
Exchange Russian Trading System Stock Exchange Eurex NYSE Liffe London National Stock Exchange of India Limited NYSE Liffe London (Bclear) Safex Financial Derivatives (stock futures) Korea Exchange MEFF Safex Financial Derivatives (IDX futures) Borsa Italiana SpA-Italian Derivatives Exch Mkt Source: Futures and Options Intelligence Trading volume in single stock futures (contracts) 226 504 533 202 188 048 183 614 306 175 674 069 105 626 407 78 756 323 44 460 687 19 684 108 15 475 768 12 713 330

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RTS markets in 2010 RTS markets: 2010 in review RTS Stock Market FORTS: futures and options market

Table 9. Most liquid index derivatives worldwide in 2010


Contract KOSPI 200 Option E-Mini S&P 500 Future Total NSE Index Options EURO STOXX 50 Index Future EURO STOXX 50 Index Option RTS Index Future SPX S&P 500 Option Total NSE Index Futures Nikkei 225 Mini Future TAIEX Option Source: Futures and Options Intelligence. Trading volume (contracts) 3 525 898 562 555 328 670 529 773 463 372 229 766 284 707 318 224 533 601 175 291 508 156 351 505 125 113 769 95 666 916

The RTS Index futures has been the most liquid instrument of the Russian securities market since 2007. In 2010, the turnover in this product reached 224,533,601 contracts, or RUB 20.4 trillion in notional value. In February 2010, the index derivatives offering on FORTS was enlarged with the launch of a futures contract on the ruble-denominated RTS Standard Index tracking blue chips. From the very start of trading and throughout the year the new instrument has remained among the top 10 most widely traded contracts.

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Relations with authorities and professional market participants

RELATIONS WITH AUTHORITIES AND PROFESSIONAL MARKET PARTICIPANTS

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RELATIONS WITH AUTHORITIES AND PROFESSIONAL MARKET PARTICIPANTS


Relations with authorities and professional market participants The year 2010 brought new prospects for a rapid development of the Russian financial market with the implementation of a raft of measures aimed at creating an international financial center in the Russian Federation. In the middle of 2010, President's Council for the Development of the Russian Financial Market set up a task force for creation of an international financial center (in the Russian Federation, whose primary goal is coordination of the IFC initiatives. RTS takes an active part in the work of those of the Task Forces divisions that address the issues related to improvement of the financial infrastructure and regulatory environment as well as with promoting the IFC project. Within this framework RTS filed a number of proposals for the development of the current legislation including those regarding prudential supervision and amendments to the regulations governing circulation of foreign securities on the Russian market, as well as proposals on regulated trading at weekends and on public holidays, and establishing a centralized accounting system in the Russian Federation. One of the key positive developments of 2010 was the adoption of the federal law On counteracting illegal usage of insider information and market manipulation by the State Duma. This law was drafted taking into account the best worlds practice to introduce international standards of counteracting insider information abuse on the Russian market. A number of proposals made by RTS in relation to identifying market manipulation, maintaining lists of insiders, and disclosing information about insiders and their transactions were taken into account by the law-makers and found their way in the approved version of this law. It should be noted that RTS experts continue contributing actively to the work of the task force that was set up to draft by-laws required for the efficient implementation of the above law. Its worth mentioning that within the framework of the plan for creation of the IFC in Russia the authorities also work on drafting a package of laws with the purpose of upgrading the financial market infrastructure. The draft of the law On clearing and clearing activities was approved in the first reading, and the law-makers aim to prepare it for final approval in early 2011. This law will provide a legal definition for a number of concepts related to clearing activities and will establish a procedure for cooperation between clearing companies and organizers of trading, settlement depositories and settlement credit institutions. It will aslo introduce close-out netting in the Russian market. RTS takes part in all the discussions of amendments to be made before the draft goes into the second hearing and comes up with proposals for its improvement. The package of infrastructural laws also includes a draft of the law On exchanges and regulated trading and a draft of the law On central depository. These drafts are also being reviewed by the authorities taking into account the expertise provided by RTS specialists in preparation for the second hearing.

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Relations with authorities and professional market participants

RTS places a special focus on cooperation with the FFMS of Russia in the field of developing proposals for improvement of the legislation and commenting on the drafts prepared the by FFMS of Russia. In 2010, FFMS of Russia developed Regulations on the types of derivatives and regulatory documents establishing the procedure for calculation of market and settlement prices of securities that incorporated the proposals made by RTS. RTS pays special attention to supervision over trading participants activities. At the end of 2010, RTS in cooperation with representatives of other infrastructural organizations proposed changes to the list of information to be disclosed by trading participants to organizers of trading. These changes are supposed to make supervision more orderly and efficient and to take the exessve load off the market participants. These amendments are expected to come into effect in the first half of 2011. In 2010, RTS continued to share its expertise with self-regulating organizations. In particular, within the framework of cooperation with the National Association of Securities Market Participants (NAUFOR) RTS experts participate in the meetings of the NAUFORs Board of Directors and its Risks Committee. In 2010, Not-for-profit partnership Russian Trading System Stock Exchange became a member of NAUFOR. RTS participates in the projects carried out by the Russian Repo Council. On July 1, 2010, certain clauses of the Regulations on reduction (restriction) of risks related to the management of investment funds assets, placement of pension reserves, investment of pension savings and investment of savings for provision of housing for the military that was approved by the Order of FFMS of Russia in 2009 became effective. With these clauses coming into force, asset management companies are entitled to include financial derivatives in the portfolios made up from pension reserves and investment funds assets. In association with the National League of Asset Management Companies RTS developed standard amendments to the rules of management of investment funds and standard risk management rules that contain a procedure for the risk management system operation and a methodology for estimation of risks. In 2010, RTS became the first Russian stock exchange to have its Rules of internal control aimed at counteracting money laundering and terrorism financing approved by the FFMS of Russia after having received the releavant clarifications from the regulator. Implementation of these rules will improve the efficiency of the internal control at the exchange and create additional protective mechanisms preventing the use of cash equities and derivatives markets for money laundering or terrorism financing.

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Many of the events arranged by RTS in 2010 were targeted at notifying market participants about important changes in legislation and supervision over market participants activities by the regulator and the exchange.

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Relations with authorities and professional market participants

In October 2010, the FFMS of Russia deployed a comprehensive monitoring system capable of tracking all stock market transactions and check them against several suspicious trading patterns. At the end of 2010, RTS held a number of workshops for market participants dedicated to the new monitoring principles with participation of experts who had implemented this system at the FFMS of Russia. RTS also arranged a series of events on algorithmic trading with participation of the management and employees of the FFMS of Russia highlighting the relevant issues and concerns of the regulator. The main topics discussed at these events included principles of algo trading, impact of algorithms on the market liquidity, and viable basic principles of algorithmic trading regulation. In addition, RTS has been putting a lot of effort into improving the image of the Russian infrastructure among foreign financial market participants through participation in the activities of international associations bringing together stock exchanges from various countries. In particular, as an affiliate member of the World Federation of Exchanges (WFE), RTS filed an application with the WFE in April 2010 to obtain a full membership in the federation. In October 2010, the WFEs Board of Directors approved this application preliminary and decided that a group of WFE inspectors needed to visit RTS at the start of 2011. After this inspection takes place, the WFEs Board will vote on RTSs application for a full membership in the federation. Besides, RTS submitted an application to the Federation of European Securities Exchanges (FESE) seeking an observer status in this organization. Once granted the observer status, RTS will benefit from a direct access to the FESE's informational services including consultations of the EC Commission, EC Parliament, European Securities and Markets Authority and European Central Bank and will also have an opportunity to participate in bilateral meetings where FESE members and regulators share their experience and discuss relevant issues.

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International projects Major international projects RTS projects in the CIS countries

INTERNATIONAL PROJECTS

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MAJOR INTERNATIONAL PROJECTS

International projects Major international projects RTS projects in the CIS countries

The most important event of 2010 for RTS in terms of its international activities was the establishment of RTS Exchange Europe Limited, its subsidiary company based in London. The main functions of this representative office are marketing the products and services of RTS Group among international investors and ensuring the optimal environment for global investors on the Russian securities market. As a result of the efforts undertaken by RTS Exchange Europe Limited a significant increase in foreign participants interest towards the Russian market and to RTS markets specifically was seen. By the end of the year, Morgan Stanley had joined FORTS as a Clearing Member. A growing number of global banks and other legal entities including clients of global banks are in the process of connecting to trading on FORTS and RTS Standard. Another fundamental part of the RTSs international activities is the arrangement of international seminars and conferences aimed at intensifying the dialogue with the representatives of the global financial community, attracting foreign customers, establishing relationships with professional organizations and foreign press. RTS successfully held several workshops in London attended by major international financial organizations, investment banks and investment funds. On December 2, 2010, two panel discussions were held: RTS Standard as an example of how the Russian securities market can be attractive for western investors and Getting familiar with DMA in Russia. During the official visit of President of Russia Dmitry Medvedev to the Republic of Cyprus in 2010, RTS and the Cyprus Stock Exchange signed a memorandum of understanding with the purpose of enhancing economic and financial relations between the two countries. Top managers and experts of RTS Stock Exchange held a number of meetings with officials of financial organizations of Asian countries. In September 2010, RTS was visited by a delegation of the Dalian Commodity Exchange of China willing to share experience and proposing cooperation between the exchanges, and in October 2010 RTS held a workshop meeting with representatives of stock exchanges, financial regulators, pension and insurance funds of Indonesia. RTS continues to support international student organizations. In 2010, two workshops were held for Dutch student associations Asset First International (Tilburg University) and The Economic Study Association (Radboud University).

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RTS PROJECTS IN THE CIS COUNTRIES

International projects Major international projects RTS projects in the CIS countries

Regional projects carried out by RTS in the CIS countries are part of its long-term strategy of creating a single exchange environment. The key to success of RTS in Ukraine and Kazakhstan is the launch of new products and introduction of new technologies. Ukrainian Exchange In 2010, the Ukrainian Exchange that was established in 2008 reinforced its position significantly by offering to the securities market participants the following products and technological solutions: derivatives market, which is a solid step forward for the entire Ukrainian regulated securities market; Central Counterparty and promotion of the repo market among the professional investors, which created additional liquidity in the market. In 2010, the Ukrainian Exchange together with the leading brokers arranged a series of events with the purpose of attracting new participants to trading on the exchange including the Best private investor competition that was held for the first time in the history of the Ukrainian market. The Ukrainian Exchange participated in the industrys exhibitions and conferences, and arranged workshops in various regions of the country for all categories of investors trying to educate the public. For this purpose the Ukrainian Exchange invited the best speakers representing the Russian securities market to speak at these workshops. As a result, a dramatic growth was seen in all markets of the Ukrainian Exchange compared to 2009 figures. Table 10. Average daily trading volumes by markets of the Ukrainian Exchange in 2010
Segment Stock market Repo market Derivatives market Bonds market 2010, million USD 174,5 61,8 56,2 15,8 2009, million USD 46,4 3,6 % + 276 + 1 617 -

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International projects Major international projects RTS projects in the CIS countries

Figure 24. Turnover dynamics by markets of the Ukrainian Exchange, May 2009 February 2011

1000 shares, million USD 800 repo, million USD derivatives, million USD 600 bonds, million USD open interest (right-hand axis), million USD

10

400

200

0
11 11 10 10 10 10 10 10 10 10 10 10 10 10 09 09 09 09 09 09 09 09 .20 6.20 7.20 8.20 9.20 0.20 1.20 2.20 1.20 2.20 3.20 4.20 5.20 6.20 7.20 8.20 9.20 0.20 1.20 2.20 1.20 2.20 0 0 1 1 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 05

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International projects Major international projects RTS projects in the CIS countries

Figure 25. Grain on-exchange turnover in Kazakhstan, 20072010


800 on-exchange trading volume, million USD ratio of on-exchange trading to production (right-hand axis) 40 %

600

30 %

400

20 %

200

10 %

0 2007 2008 2009 2010

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International projects Major international projects RTS projects in the CIS countries

In August 2010, the Ukrainian Exchange held a privatization auction for shares of Prykarpattyaoblenergo to a value exceeding USD 10 million (the shares were placed at a price 3 times higher than the initial lot price). Development priorities of the Ukrainian Exchange for 2011: increasing its share of the local stock market; further development of post-trading infrastructure; retaining the leading position on the derivatives market; creating an integrated order book for the CIS markets. urasian rade System ommodity Exchange (Kazakhstan) Set up in 2008, ETS saw an increase in the ratio of on-exchange grain turnover to grain production to 25% (3.6 million tons) for the second year running (see Figure 25). In November 2010, ETS introduced a cash-settled futures on gold. This instrument caught the attention of investors immediately, and the open interest/executed contracts ratio reached a high level of 3.74 in 2010. In 2010, ETS launched a new specialized trading market section for state procurement by companies in whose capital the government of the Republic of Kazakhstan has a stake. The high efficiency of the offered infrastructure helped to arrange trading for a total of USD 10 million in 2010. The key priorities of ETS in 2011 will be: reinforcing its position on the market as a commodity exchange; developing the derivatives market and expanding the range of exchange-traded products; developing the infrastructure of the speicialized trading section.

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DCC, RTS Settlement Chamber, RTS Clearing Center Depository services Development of clearing and settlement techologies Settlement services

DCC, RTS SETTLEMENT CHAMBER, RTS CLEARING CENTER

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DEPOSITORY SERVICES

DCC, RTS Settlement Chamber, RTS Clearing Center Depository services Development of clearing and settlement techologies Settlement services

Closed Joint Stock Company Depository Clearing Company DCC is the leading settlement depository for stocks in Russia. As a key element of the centralized settlement and depository infrastructure DCC provides a full range of services expected from a modern settlement depository meeting the global quality standards. The services offering include assets safekeeping, clearing and settlement of trades, corporate actions and informational services. DCC provides all types of securities trades settlement including DVP in local and foreign currencies. Over the reporting period, in line with the plans for development of the RTS Groups business, DCC implemented a range of projects aimed at improving its services: the scheme for faster settlements between DCC and Sberbank of Russia and between DCC and VTB Bank was introduced; the scheme for faster settlements between DCC and Citibank and between DCC and ING Bank was made available for Gazprom stocks; a direct account was set up for DCC with Euroclear Bank S.A./N.V.; a contract establishing correspondence relations with The National Depository of Ukraine was signed; electronic communication channels to the registrars on the collective investment market were set up; real-time DVP settlements were introduced; the audit company KPMG performed an operational audit of DCC in accordance with the SAS-70 standards; the international agency Thomas Murray confirmed DCCs overall A+ rating, stable outlook. Whereby two ratings (operational risk and asset servicing risk) were upgraded; professional liability was insured for USD 50 million. Among the important events of 2010 was the change in the ownership structure of DCC as a result of NDC withdrawing from DCC. Below you can see the list of DCC shareholders as of the reporting date (December 31, 2010). Table 11.
Shareholders Open Joint Stock Company Russian Trading System Stock Exchange ZAO AKIB Zerich ZAO Capital Regent Securities AOZT Navigator Capital Stake, % 97,7567 % 2,2413 % 0,0010 % 0,0010 %

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DEVELOPMENT OF CLEARING AND SETTLEMENT TECHOLOGIES


DCC, RTS Settlement Chamber, RTS Clearing Center Depository services Development of clearing and settlement techologies Settlement services Joint-stock company "RTS Clearing Center" RTS Clearing Center was founded in 1995. Currently it provides clearing services on FORTS, the derivatives market of RTS, and on cash equities markets of RTS. RTS Clearing Center is one of the most highly capitalized clearing entities in Russia. During the years of its operation the risk management system implemented by the RTS Clearing Center proved reliable in a highly volatile Russian securities market with a significant open interest. RTS Clearing Center ensures a high level of settlement guarantees thanks to a progressive system of guarantee funds formation. One of the key steps made by the RTS Clearing Center in 2010 towards further development of clearing and settlement technologies was the start of clearing of derivatives trades executed on the markets of Joint stock company Moscow Energy Exchange and Closed joint-stock company Exchange Saint Petersburg. In addition, in 2010 RTS Clearing Center developed and registered with the FFMS of Russia a new procedure for settlement of deliverable futures contracts on single stocks (unified delivery on the FORTS and RTS Standard markets) which is another initiative of RTS bringing the Russian exchange infrastructure to a new development level. In order to cut the costs incurred by market participants and to increase the risk management system efficiency, RTS implemented a new methodology for calculation of contributions to the Contingency Fund in 2010. The updated methodology provides for a graduated rate of membership contributions depending on the market participants open interest. Amendments were introduced to the RTS Clearing Centers documents to account for the changes in the federal Law On the securities market related to conclusion of contracts that are recognized as derivatives.

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SETTLEMENT SERVICES

DCC, RTS Settlement Chamber, RTS Clearing Center Depository services Development of clearing and settlement techologies Settlement services

Non-Banking Credit Organization Settlement Chamber RTS RTS Settlement Chamber is a non-banking credit organization that renders cash settlement services in various segments of the financial market. The primary task of the RTS Settlement Chamber is servicing accounts of RTS Group clients who trade on RTS Classica, RTS T+0 Market, FORTS and RTS Money. The electronic settlement system implemented by the RTS Settlement Chamber makes it possible to complete all settlements in a timely manner which is very important for market participants given the nature of trading on the financial market. Moreover, clients of the RTS Settlement Chamber are able to move funds between the RTS markets with regard to the current market situation very fast. Among other activities, RTS Settlement Chamber carries out bank operations in rubles and foreign currencies: sets up and maintains bank accounts for legal entities; performs settlement on behalf of legal entities including on behalf of correspondent banks using their bank accounts; and buys and sells foreign currency via non-cash transfers. The high speed of client operations performed by the RTS Settlement Chamber is achieved through the use of the Bank Client remote access system. The information security of the RTSs Electronic Document Circulation system is ensured by the cryptographic transformation algorithms implemented in the certified software product Verba-O. In the area of information technologies, a lot of effort was put into improving the quality of customer services, reducing operational risks and supporting amendments to the Russian legislation. In April 2010, RTS Settlement Chamber launched a system for straight-through processing of payments via a correspondent account with the Central Bank of the Russian Federation (in Moscow). In July 2010, RTS Settlement Chamber connected to the BEUP (Bank Electronic Urgent Payments) system which allowed for real-time inter-regional payments. In the second half of 2010, RTS Settlement Chamber modified the procedure for exchange of data with DCC (Online DCC DVP) which made it possible to settle securities trades in the online mode, whereas the previous technological solution required waiting for the settlement and clearing session to be completed. Besides, a technology was developed for trading on the European securities market with settlements via the Euroclear bank.

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DCC, RTS Settlement Chamber, RTS Clearing Center Depository services Development of clearing and settlement techologies Settlement services

Throughout 2010, RTS Settlement Chamber was developing and testing a new technology for foreign currency trading integrated into the RTS Standard platform. This technology brings securities and foreign currency markets onto the same platform which enables market participants to efficiently move assets between these markets during trading. By the end of 2010, the total number of open accounts increased by 4.8% as compared to the end of 2009, reaching 1,727 accounts. The balances in client accounts opened with the RTS Settlement Chamber grew from 27.4 billion rubles in 2009 to 13.5 billion rubles as of the end of 2010 (a 103.4% increase). The increase in balances was due to the transfer of RTS Clearing Centers operations from the Savings Bank of Russia to the RTS Settlement Chamber. In June 2010, RTS made a decision to reorganize the Non-Banking Credit Organization RTS Settlement Chamber (LLC) into Non-Banking Credit Organization RTS Settlement Chamber (CJSC). On December 31, 2010, the Non-Banking Credit Organization RTS Settlement Chamber (CJSC) was registered in the Unified State Register of Legal Entities. In 2010, the equity capital of RTS Settlement Chamber was increased from 1,299.3 million rubles in 2009 to 1,395.4 million rubles. However, the net profits fell by 73% to 95 million rubles in 2010 (352 million rubles in 2009). The lower profitability of RTS Settlement Chamber in 2010 can be attributed to the decrease in interest rates on the money market that affected interest rates paid on deposits by the Bank of Russia (by 2.5 times on average) and swap rates (by more than 3.5 times).

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Information technologies and software

INFORMATION TECHNOLOGIES AND SOFTWARE

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INFORMATION TECHNOLOGIES AND SOFTWARE

Information technologies and software

Ongoing upgrades of its technonlogical solutions is a core competitive advantage of RTS Group on all markets. Today, the platforms and technologies designed by RTS experts are successfully implemented both on the domestic market and on the CIS markets. RTS has a unique proprietary base for development of hardware and software ensuring a smooth and stable operation of the trading system under any conditions. Having survived the crisis of 2008, RTS confirmed the high reliability of its current technologies. The key event of 2010 in terms of technological development was the migration of the FORTS and RTS Standard trading system to the Plaza II protocol. This is an important step towards creating an integrated platform based on a proprietary protocol. This integrated platform is to bring together all RTS markets and its clearing, settlement, reporting and statistics infrastructure. The main infrastructure changes included a transfer of the data dissemination system, order management system and the administration system from MS SQL technology to the Plaza II protocol. The new platform enhanced the general performance of the RTS trading system and increased the rate of transaction processing by the trading system core. The implementation of the PUSH data distribution technology ensured a flexibility in terms of managing the received traffic volume thanks to the optimized data flows, and helped to significantly reduce the delay in market data updates. Besides, deployment of the new platform broadened the opportunities for direct access to trading thanks to provision of additional procedures in the API gateway (P2ClientGate). These developments made it possible to launch on March 12, 2010 a technology for simultaneous settlement of deliverable futures on single stocks and trades in stocks on the RTS Standard market. This technology allowed for netting the obligations of a Clearing Member on the cash equities and derivatives markets. The unified settlement technology lowered the costs associated with arbitration strategies and reduced operating risks during the settlement of delivery obligations. The introduction of the new technology also increased the overall trading efficiency both on the cash equities and derivatives markets.

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Information technologies and software

Besides, a new service was launched for participants of FORTS and RTS Standard markets a transactions log of unlimited depth. It allowed the clients interacting with the trading system via a gateway to receive the list of all orders accepted by the trading system during the current trading session, specifying the current order status (announced/deleted) and changes in the order parameters (partial execution, order transfer). The log also contains trade records that specify the identification number of the order that was matched which resulted in this trade. This service makes the process of market data handling more flexible and faster. It enables market participants to use various software for data processing, aggregating and analysis. This facilitates the use of automated decision making and order management systems, which increases the rate of decision making for algorithmic and, in particular, high frequency trading. The time of order acceptance by the trading system is reflected to the accuracy of a millisecond which helps analyze the micromovements of the market and act immediately. On July 5, 2010, the gap between scheduled market data updates was reduced thanks to the completion of another stage of migration of FORTS and RTS Standard trading platforms to the Plaza II protocol. This enabled market participants to respond to the changing situation on the cash equities and derivatives markets faster. A speedier market data update on the access servers of the FORTS trading system was made possible thanks to the reduction of the market data dissemination sampling frequency after the load testing.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

CORPORATE GOVERNANCE, COMMITTEES AND COMMISSIONS

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CORPORATE GOVERNANCE

Corporate governance, committees and commissions Corporate governance Committees and commissions

RTS meets the guidelines of the Code of Corporate Governance recommended to joint stock companies by Oder No. 421/r of the FFMS of Russia dd. April 4, 2002. In elaboration of the Code of Corporate Governance issued by the FFMS of Russia, the RTS Board of Directors approved the Code of Corporate Governance of RTS Stock Exchange (minutes No. 06-10-2809 dd. September 28, 2006). The Corporate Governance Code aims to enhance corporate governance at RTS. The Code seeks to ensure effective and professional functioning of all governing bodies of the exchange, protection of rights and interests of shareholders, disclosure of information and transparency as well as implementation of effective risk management and internal control systems. The Code of Corporate Governance of RTS was developed on the basis of international standards for corporate governance taking into account the Code of Corporate Conduct recommended by the FFMS of Russia and the Articles of Association and other internal documents of RTS. Principles of corporate management According to the Code of Corporate Governance of RTS, corporate governance at RTS is based on the following principles: transparency, responsibility, fairness, accountability. Besides, the Code determines the principles of using insider information, disclosing information and protecting confidential information and also fair interaction with all market participants. RTS follows the above-mentioned principles and norms in its day-to-day activities and raises their importance for all company employees. RTS discloses information in full and in a timely fashion as required by legal acts of the Russian Federation governing the disclosure of information by issuers (joint stock companies), in particular by federal law On joint stock companies and by Provision on disclosure of information by issuers of securities as approved by Order of the FFMS of Russia No. 06-117/pz-n dd. October 10, 2006, and subject to the provisions of regulatory acts of the Russian Federation governing the activities associated with organization of trading on the securities market, in particular, of the federal law On securities market and Provision on the activities associated with orgainzation of trading on the securities market as approved by Order of the FFMS of Russia No. 07102/pz-n dd. October 09, 2007.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

Figure 26. Structure of the RTS Group as of December 31, 2010

urasian rade System ommodity Exchange JSC (ETS)


(Kazakhstan, Almaty)

61,82 %

Open Joint Stock Company Russian Trading System Stock Exchange


100 %

Closed Joint Stock Company


97,76 % "Depository Clearing Company"

74,90 %

ETS Clearing House Limited Liability Partnership


(Kazakhstan, Almaty)

25,10 %

100 %

Joint-stock company RTS Clearing Center

Non-Banking Credit Organization Settlement Chamber RTS

Private Joint Stock Company Ukrainian Exchange Holding


(Ukraine, Kiev)

100 % 10 %

100 %

RTS EXCHANGE EUROPE LIMITED


(England, London)

Central Counterparty, LLC


(Ukraine, Kiev) 100 %

Joint stock company Moscow Energy Exchange

5,83 %

20,64 %

Public Joint Stock Company UKRAINIAN EXCHANGE


(Ukraine, Kiev)

22,44 %

Open Joint-Stock Company SAINT PETERSBURG EXCHANGE

9,67278 %

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Corporate governance, committees and commissions Corporate governance Committees and commissions

Information is generally disclosed through publication on the Internet at www.rts.ru and, in certain cases, also by publication of the appropriate information in the news bulletin and by sending press releases to the FFMS of Russia. In case of information disclosure on the corporate website any interested party is provided with a free and easy access to this information. If the information is meant for qualified investors only, it is only made available to the persons meeting requirements to qualified investors. Every year RTS publishes its annual report which incorporates a corporate governance section. RTS guarantees protection of confidential information in accordance with the legislation of the Russian Federation and RTSs internal documents, in particular with the List of measures for preventing illegal use of insider information in the course of professional activities on the securities market. RTS prepares financial reports both in accordance with the Russian accounting principles and the International Financial Reporting Standards (IFRS). These reports undergo an annual audit and are published on the Internet at www.rts.ru. RTS discloses the list of shareholders holding 5% of its ordinary shares or more, including in case of any changes in the ownership structure. This list is published on the Internet at www.rts.ru. Besides, RTS must disclose information about any changes in the stakes in RTS held by members of the Board of Directors, Executive Board and RTS Chief Executive Officer and their stakes in the share capitals of RTSs subsidiary and affiliated companies.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

Shareholders, General Shareholders Meeting The supreme governing body of RTS is the General Shareholders Meeting which provides for shareholders participation in the corporate governance. The competence of the General Shareholders Meeting is determined by federal law On joint stock companies and reflected in the RTSs Articles of Association. The procedure for preparation, convocation and holding of the General Shareholders Meeting is governed by the Articles of Association and Provision on the RTS's General Shareholders Meeting as approved by the General Shareholders Meeting. Each shareholder has the right to attend the General Shareholders Meeting, vote on all issues of the agenda, timely receive authentic, objective and complete information which is sufficient for making reasonable decisions on the issues of the agenda. RTS takes measures which are necessary for providing a shareholder with an opportunity to participate in the General Shareholders Meeting and vote on any issues of the agenda, including an available place for holding the General Shareholders Meeting, presence of the members of management bodies, comprehensible and transparent voting procedures. For this purposes: shareholders are notified about holding the General Shareholders Meeting no later than 30 (Thirty) days prior to the date of its holding, irrespective of any issues included in its agenda, unless the applicable legislation envisages a longer term; shareholders have an opportunity to get acquainted with the list of persons entitled to participate in the General Shareholders Meeting, starting from the day of notice about holding such General Shareholders Meeting and until the closure of the physical General Shareholders Meeting, and in case of an absentee General Shareholders Meeting until the last date of receipt of voting bulletins; a shareholder has an opportunity to include an issue in the agenda of the General Shareholder Meeting or demand the convocation of the General Shareholders Meeting without providing an extract from the Shareholders Register, if his share rights are accounted in the Shareholders Register maintenance system, and if his share rights are accounted on the REPO account, an account statement of the securities account is sufficient for the execution of the said rights. The RTS Shareholders Register is delivered to an independent registrar (Registrar R.O.S.T.), which provided for reliable and effective registration of RTS share ownership.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

The Annual General Shareholders Meeting was held on June 30, 2010. It considered the following issues: approval of the annual report, annual financial statements including the profit and loss report of RTS as well as distribution of profit and loss of RTS subject to the results of the 2009 financial year; election of members of the RTS Board of Directors; election of members of the RTS Internal Auditing Commission; election of the RTS Chief Executive Officer; approval of the RTS Auditor; approval of the new edition of the RTS Articles of Association; approval of the new edition of the Provision on the RTS Executive Board; payment of remuneration to the members of the RTS Board of Directors. Besides, on December 30, 2010 RTS held an Extraordinary General Shareholders Meeting which made decisions on the following issues: splitting the allotted ordinary shares in RTS; increasing the Authorized Capital of RTS by way of allocation of extra shares; making amendments to the RTS Articles of Association. Board of Directors The RTS Board of Directors includes 17 members elected by the RTS General Shareholders Meeting in the course of cumulative voting (for personal structure, see Details of Members of RTS Board of Directors). The structure of the RTS Board of Directors meets the requirements established by the Russian legislation, including the normative legal acts of the federal executive authority for the securities market.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

In particular, the RTS Board of Directors does not include any persons who have ever been found guilty of committing crimes in the field of economic activities or crimes against the state power, interests of state service and service in the local authorities or to whom administrative punishment has been applied for any violations in the field of entrepreneurial business or in the field of finance, taxes and receipts, securities market and the activities of the Board of Directors are governed by the RTS Articles of Association and Provision on the RTS Board of Directors as approved by the General Shareholders Meeting, which in particular establishes the procedure for holding meetings and absentee voting of the RTS Board of Directors. The Board of Directors determines the priority lines of activities of RTS, approves internal documents (except for the internal documents the approval of which is referred by the Federal Law On Joint Stock Companies to the competence of the General Shareholders Meeting and any other internal documents the approval of which is referred by the Articles of Association to the competence of the executive bodies of RTS), determine the quantitative composition of the Exchange Council of RTS and elects the members of the Exchange Council of RTS, establishes committees and commissions of RTS and elects the members of any such committees and commissions, and performs any other powers stipulated by the Federal Law On Joint Stock Companies and RTS Articles of Association. The members of the Board of Directors are remunerated for the performance of their functions. The amount of such remuneration is determined by the Provision on Payment of Remuneration to the Members of the RTS Board of Directors as approved by the Annual RTS General Shareholders Meeting. The amount of such remuneration for the accounting operating period of the Board of Directors is RUR 500,000 (Five hundred thousand rubles). The remuneration is paid to a member of the RTS Board of Directors provided that he has directly participated in (attended) at least half of the physical meetings of the RTS Board of Directors which were held during the accounting operating period of the RTS Board of Directors. The accounting period is calculated from the moment of electing a member of the Board of Directors by the Annual General Shareholders Meeting until the termination of his powers at the next Annual General Shareholders Meeting of the Exchange. The total amount of remuneration to be paid to the members of the Board of Directors at the end of a financial year is approved by the Annual General Shareholders Meeting of the Exchange. In order to increase the efficiency of activities of the Board of Directors, RTS has a number of committees which include members of the Board of Directors and perform the preliminary revision of the primary issues relating to the activities of the Exchange and prepare appropriate recommendations to the Board of Directors. The activities of such committees is governed by the internal documents of RTS containing the provisions on the structure, competence, working order of such committees, and on the rights and obligations of their members.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

In particular, RTS has a permanent Auditing Committee. The main functions of activities of this Committee are the following appraisal of a nominee auditor and submission of the results of such appraisal to the RTS Board of Directors; appraisal of the RTS Auditors opinion prior to its submission to the RTS General Shareholders Meeting; control of the scope and results of auditing procedures and their efficiency; appraisal of the efficiency of the internal control procedures effective in RTS and preparation of proposals on their upgrading; control of reliability and efficiency of the risk management system; review of proposals and preparation of recommendations relating to the organization of management of risks emerging in the course of RTSs financial and economic activities. Besides, RTS has a permanent Strategic Committee. Its goal is the development of recommendations on the issues relating to the strategic objectives and key lines of development of RTS and submission of such recommendations to the RTS Board of Directors. The competence of the Strategic Committee of RTS includes, inter alia, the revision of the following issues: approval of the strategy and business plan of RTS; approval of concepts, programs, plans and key trends of strategic development of RTS; approval of RTSs assets management policy; approval of the plans of strategic development of the subsidiary and affiliated companies of RTS. RTS also has a Personnel and Remunerations Committee. Its goal is the formation of a system of remuneration and motivation of the members of management and control bodies of RTS as well as members of RTS committees and employees of RTS. The competence of the RTS Personnel and Remunerations Committee includes the following issues: preliminary, prior to the submission to the RTS Board of Directors, review of the issue of approval of the remuneration and motivation system; analysis of the remuneration and motivation systems of the Russian and foreign companies providing financial services.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

Corporate Secretary RTS has an official appointed for the performance of functions of the corporate secretary and responsible for the development, maintenance and periodic revision of the corporate governance policy. The Corporate Secretary of RTS takes measures aimed at the preparation and holding of the General Shareholders Meeting and meetings of the Board of Directors, provides for the safe custody of documents and disclosure of information about RTS, arranges the procedure of considering applications and claims of shareholders and timely resolution of conflict relating to any violations of shareholders rights. RTSs Executive Board and Chief Executive Officer As of December 31, 2010, the RTS Executive Board includes 8 members elected by the Board of Directors (for personal structure, see Details of the Chief Executive Officer and members of the RTS Executive Board). The activities of the Executive Board is governed by the RTS Articles of Association and Provision on the RTS Executive Board as approved by the General Shareholders Meeting. The Executive Board of the Exchange agrees upon the corporate structure of RTS, develops the current and long-range business plan, considers of any issues submitted by the Chief Executive Officer and performs any other functions vested in him by the internal documents of RTS. The Chief Executive Officer of the Exchange is elected by the General Shareholders Meeting for a term of 2 (Two) years. In 2010, the Annual General Shareholders Meeting held on June 30, 2010 elected Roman Goryunov to be the RTS Chief Executive Officer. The rights and obligations of the RTS Chief Executive Officer are determined by the Russian legislation, RTS Articles of Association, Provisions on the RTS Chief Executive Officer as approved by the General Shareholders Meeting and the contract concluded with the Chief Executive Officer. The Chief Executive Officer settles all issues of RTSs day-to-day operations, except for the issues referred to the exclusive competence of the General Shareholders Meeting, Board of Directors and RTS Executive Board. The RTS Board of Directors does not include any persons who are a member, General Director, member of a management body or employee of a legal entity engaged in competition with RTS, and Directors does not include any persons who have ever been found guilty of committing crimes in the field of economic activities or crimes against the state power, interests of state service and service in the local authorities or to whom administrative punishment has been applied for any violations in the field of entrepreneurial business or in the field of finance, taxes and receipts, securities market.

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The reports of the RTS Executive Board are submitted to the RTS Board of Directors on a quarterly basis.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

Internal and External Supervision Systems The internal supervision over the financial and economic activities of RTS is carried out by the RTS Internal Auditing Commission and RTS Auditing Committee. The Internal Auditing Commission is a permanent supervising body of RTS. It is elected by the General Shareholders Meeting in order to carry out supervision over the financial and economic activities of the Exchange and compliance with the norms of the Russian legislation and provisions of the Articles of Association by the management bodies of the Exchange. The competence and operating procedures of the Internal Auditing Commission are determined by the Russian legislation, RTS Articles of Association and internal documents. The Internal Auditing Commission is elected to include three members. The external supervision over the financial and economic activities of RTS is carried out by the General Shareholders Meeting subject to recommendations of the Board of Directors, in view of the opinion of the Auditing Committee. The RTS Auditor is elected by the General Shareholders Meeting subject to recommendations of the Board of Directors, in view of the opinion of the Auditing Committee. Advisory Bodies of RTS In accordance with the provisions of the Russian legislation on securities market, RTS has an Exchange Council which is an internal advisory body established due to RTSs performance as a stock exchange. The activities of the Exchange Council is governed by the Provision thereon as approved by the Board of Directors. The competence of the RTS Exchange Council includes: revision of draft documents of RTS and draft amendments to such documents, the preliminary discussion of which by the Exchange Council is stipulated by the normative legal acts of the federal executive authority for the securities market; development of recommendations on the issues relating to the securities trading organization by RTS; introduction of new exchange technologies; development of recommendations on upgrading the RTS regulations in view of their practical application and borrowing of positive experience. The Exchange Council is elected by the Board of Directors to include 6 members. It is composed of authorized representatives of RTS, trading participants, issuer companies, any other interested organizations and independent experts.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

Dividends The procedure for, and principles of making decisions on payment of dividends on RTS shares are established in the Articles of Association and Provisions on Dividend Policy approved at the General Shareholders Meeting. These documents determine the minimum share of RTSs net profit allocated for dividend distribution. The above-mentioned documents are published on the Internet at www.rts.ru. Report of the RTSs Board of Directors on achievements of RTS in its priority business areas Before the vote on new members of the Board of Directors was held in 2010, RTS had held six meetings in presentia and 12 absentee votes of the Board of Directors. After the vote on new members of the Board of Directors, RTS held eight meetings in presentia and 11 absentee votes of the Board of Directors. In 2010, the RTSs Board of Directors considered and adopted resolutions on the following issues: approval of the corporate strategy of RTS Group for 2010-2012; management of subsidiary and affiliated companies of RTS, in particular development of RTSs projects in Ukraine and Kazakhstan; corporate governance, approval of provisions on RTS committees (commissions) and electing members of these committees (commissions); payment of remuneration to the members of committees (commissions) and members of the Board of Directors; cooperation with other participants of the securities and commodity markets; improving legislation and financial market regulations; preparation for the IPO of ordinary shares of RTS; placement of RTS shares by way of conversion during share split; approval of the business plan for 2011-2013 and the strategy of improving profitability of RTSs business.

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COMMITTEES AND COMMISSIONS

Corporate governance, committees and commissions Corporate governance Committees and commissions

In order to attract trading participants to the trading regulation process, RTS has committees which enjoy the status of permanent advisory bodies of the Exchange. They are responsible for the due diligence of documents prepared by RTS executive bodies and/or internal divisions and preparation of recommendations to the RTS Board of Directors. The committees are made up of RTS employees, trading participants, representatives of professional securities market participants, scientific and any other organizations, independent experts. Committee membership is voluntary and personal. Index Committee The Committees primary objectives are: developing the RTS family of indices, including development of new indices and terminating the calculation of existing indices; improving the index calculation methods; making amendments to the lists of securities according to which indices are calculated; expert evaluation during creation of index components list, when establishing the free float and also in other cases stipulated for in the methodology of the index calculation. In 2010, eight meetings of the Index Committee were held. They made the following strategic decisions: launch of calculation of the RTS Standard and RTS Siberia Indices; transfer of the time of index calculation from 10:30 am to 10:00 am MSK since May 17, 2010; making amendments to the methodology of RTS index calculation which allowed to increase the precision of establishing the free float up to the 1% level; four rebalancings of RTS indices baskets; making decisions on the procedure for registration of issuer companies reorganizations in the RTS indices.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

Legal Committee The Committees primary objectives are: development and due diligence of RTS regulatory documents, including forms of standard agreements and other RTS documents, and also development of proposals for improving the said documents; developing recommendations for RTS and also for trading participants on issues of application of securities market legislation and legal aspects of the exchange business; reviewing draft laws and other Russian Federation regulations which govern the activity of RTS. In 2010, the Committee held no meetings. Derivatives Market Committee The Committees primary objectives are: developing Trading Rules, Clearing Rules, and specifications of contracts and supervising their compliance with the Russian legislation; monitoring the compliance of Trading Participants with the requirements for the Risk Management System, technical requirements and other established requirements; developing requirements to Trading Participants, to their technological resources, for traders, risk management systems and automated trading systems etc; developing new contracts and technologies; admitting Trading Participants to the derivatives market section and excluding them; providing for control and surveillance over the management system functioning by means of collateral and the contingency fund of the RTS derivatives market. In 2010, 27 meetings of the Derivatives Market Committee were held.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

The meetings of the Committee made decisions on: admitting/excluding trading participants; changing the parameters of the RTS risk management system; developing and introducing new contracts and technologies; changing requirements to trading participants; changing amounts of contingency and reserve funds. New versions of Trading Rules, Clearing Rules, rates and new versions of a number of specifications were approved and made effective in relation to amendments to the normative legal acts of the Russian Federation and the regulatory documents of the Exchange. A unified delivery between the FORTS and RTS Standard markets was introduced. The delivery of single stock futures resulted in the conclusion of a transaction on the RTS Standard market with +4 settlements. Stock Market Committee The Committees primary objectives are: preparing proposals on amending and adding to the Trading Rules of the Company, the NP RTS Trading Agreement and other documents which govern trade organization by the Company; reviewing together with other committees the issues of depository services, settlement and netting for securities transactions concluded at trading organized by RTS, and cooperating with depositories, clearing organizations, registrars and transfer agents; monitoring compliance of participants of trading organized by RTS with the established requirements relating to securities trading jointly with other authorized bodies of the Joint Stock Company.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

During 2010, the RTS Stock Market Committee held 4 meetings which considered the following issues: expediency of changing the time of transaction settlements in the Exchange Trading Mode with the T+4 settlements (RTS Standard); order of conversion of the time of delivery to RTS Standard; general principles of admitting securities to trading in the Exchange Trading Mode with the T+4 settlements (RTS Standard); accounting and transfer of dividend, interest, income or any other distributions to the Central Bank (hereinafter referred to as the Income) on transactions requiring the compilation of a list of persons entitled to such Income within the period from the date of their conclusion to the final date of obligations; organization of trading in issues in the Exchange Trading Mode with the T+0 settlements; new rates on the RTS Standard market; RTS stock market ratings. Technical Committee The Committees primary objectives are: reviewing and evaluating projects and proposals aimed at improving information technology used by RTS; preparing recommendations for development of RTSs information technology, including advising on development/ modernization/acquisition of software and equipment. In 2010, the Committee held three physical and two absentee meetings. The main issues considered at the Committees meetings were the issues of further development and upgrading of reliability and capacity of the trading platform.

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Corporate governance, committees and commissions Corporate governance Committees and commissions

Disciplinary Commission The Disciplinary Commission is a permanent body of the Exchange. The structure of the Commission is made up of the elected trading participants, staff members of the Exchange, independent experts (persons who are not employees of trading participants), any other persons and appointed Chairman of the RTS Disciplinary Commission. The primary goal of the Exchanges Disciplinary Commission is the promotion of: provision for the proper environment for professional activities of the securities market participants; development of norms and standards of professional activities and professional ethics on the securities market and supervision over their observance; protection of the interests of security holders and other clients of professional securities market participants who are also trading participants; development of regulations and standards for the performance of securities transactions. In particular, the RTS Disciplinary Commission: independently and/or in conjunction with any other bodies of (authorized representatives) of the Exchange, supervises the trading participants compliance with the norms of professional activities and professional ethics, provisions of documents of the Exchange; either at its own discretion or at the initiative of a body or authorized representative of the Exchange, at the request of trading participants or third parties, independently and/or in conjunction with any other bodies of (authorized representatives) of the Exchange investigates any facts of violation of provisions of the Exchanges documents, norms of professional activities and professional ethics by trading participants; independently applies disciplinary measures or recommends the RTS Board of Directors to apply such measures; adjusts decisions on the application of disciplinary measures which have been made by the Chairman of the RTS Disciplinary Commission. In 2010, the Commission held no meetings. However, the Chairman of the Disciplinary Commission reviewed within its competence 4 (Four) events of violation of norms of professional activities and professional ethics by trading participants, which resulted in the following: in two events, it was decided to apply disciplinary measures to trading participants in the form of Warning and in the form of Warning and Penalty; in two events, it was decided to excuse trading participants from the application of disciplinary measures, and to simultaneously admonish such trading participants. 99 / 154

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Financial results of 2010

FINANCIAL RESULTS OF 2010

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FINANCIAL RESULTS OF 2010

Financial results of 2010

In 2010, the total income of RTS made up 3,255 million rubles including operating income of 1,565 million rubles, interest income and other income of 1,260 million rubles, and income from the sale of subsidiary and affiliated companies of 430 million rubles. The income structure changed in the accounting period. As a result, operating income accounted for 48% of the total RTS income, whereas interest income and other income accounted for 39% and sales revenue was 13% (see Figure 27). By comparison, in 2009 the operating income accounted for 40%, and other income accounted for 60%. Operating Income In 2010, the operating income of RTS reached 1,565 million rubles including FORTS income of 762 million rubles, cash equities market income of 334 million rubles, market data income of 167 million rubles and depository services income of 270 million rubles. Table 12.
2010, ths RUB Cash equities market income FORTS market income Depository services Market data income Other operating income Total operating income 334 143 761 996 269 975 166 832 32 419 1 565 365 2009, ths RUB 168 320 542 619 237 310 186 969 19 327 1 154 545 2008, ths RUB 37 915 381 571 301 964 127 429 31 988 880 867 2010, % 21 49 17 11 2 100 2009, % 15 47 20 16 2 100 2008, % 4 43 34 15 4 100

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Financial results of 2010

Figure 27. Breakdown of operating income in 2010

2%

11 % 21 %

17 %

cash equities market FORTS market depository services market data sales other operating income

49 %

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Financial results of 2010

Figure 28. Breakdown of FORTS income in 2010

2% 10 % 0%

21 %

index contracts bonds contracts single stock contracts interest rates contracts FX contracts commodities contracts

0%

67 %

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Financial results of 2010

The total income in 2010 went up by 35% as against the 2009 figures an increase of 411 million rubles in absolute terms (see Figure 29). During the said period FORTS income increased by 40% (219 million rubles), mainly due to currency and index instruments (see Figure 28). The cash equities market income nearly doubled demonstrating a 166 million ruble growth which resulted from the increased trading volume. Depository services income went up by 14%, i.e. by 33 million rubles in absolute terms, due to the free delivery (advance payment, advance delivery) income growing by 8% and delivery versus payment by 13%. However, market data income dropped by 12%, i.e. by 23 million rubles as compared to the previous period, which can be mainly attributable to the fact that a sizable portion of such income is denominated in a foreign currency, and the ruble appreciated significantly against the US dollar in 2010. Interest Income and Other Income In 2010, interest income and other income of RTS made up 1,260 million rubles including income from short-term bank deposits of 801 million rubles, securities (bonds of Bank of Russia, federal loan bonds) income of 321 million rubles and other income of 137 million rubles. A decrease in the interest income as compared to 2009 figures was primarily due to the drop in the interest rates. Other income fell by 263 million rubles compared to 2009 figures, due to a smaller income from foreign currency transactions. Operating Expenses In 2010, the operating expenses of RTS amounted to 1,317 million rubles. Business development expenses including marketing and advertising expenses reached 895 million rubles. Information and telecommunications expenses stood at 153 million rubles. Rent expenses amounted to 143 million rubles, and other operating expenses reached 123 million rubles. Staff expenses amounted to 657 million rubles, which is a 9% increase (53 million rubles in absolute terms) on the 2009 figure. In 2010, the operating expenses of RTS grew by nearly 1.65 times (a 520 million ruble increase) (see Figure 30). This increase was mainly due to the investments in the development of RTS market. These investments are to facilitate RTS in obtaining a larger share of the Russian securities and to ensure future profit growth.

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Financial results of 2010

Figure 29. Operating income dynamics in 20082010

1 800 000 1 600 000 1 400 000 1 200 000 million rubles 1 000 000 800 000 600 000 400 000 200 000 0 2008 2009 2010

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Financial results of 2010

Figure 30. Operating expenses dynamics in 20082010

1 400 000 1 200 000 1 000 000 million rubles 800 000 600 000 400 000 200 000 0 2008 2009 2010

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Financial results of 2010

Profit In 2010, net profit reached 1,005 million rubles, which is 12% (139 million rubles) less than in 2009. The effective profit tax rate in 2010 was 21.5 %, and the profit tax totaled 276 million rubles. At the end of 2009, these figures stood at 22.9% and 340 million rubles respectively. Table 13.
2010 Operating income, million rubles Interest income and other income, million rubles Income from sale of assets, million rubles Operating expenses, million rubles EBITDA, million rubles Profit before tax, million rubles Net profit, million rubles Earnings per share, rubles Return on equity, % Return on assets, % 1 565 1 260 430 1 317 1 327 1 281 1 005 6,08 26,70 3,40 2009 1 155 1 730 0 794 1 520 1 487 1 145 6,84 26,40 4,63 2008 881 1 286 0 384 1 294 1 268 956 5,77 33,70 4,00

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Financial results of 2010

Figure 31. Structure of assets and liabilities

100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% 2010 2009 cash and cash equivalents financial instruments held for trading financial assets of the Central Counterparty investments fixed assets and intangible assets other assets

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Financial results of 2010

In 2010, return on operations in terms of net profit (ratio of net profit to revenues for the current year) stood at 35%. Return on equity reached 26.7%. In the accounting year earnings per ordinary share amounted to 6.08 rubles against 6.84 rubles in 2009, whereas earnings per a preferred share amounted to 7.30 rubles compared to 8.21 rubles in 2009. Capital expenses of RTS in 2010 made up 752 million rubles (120 million rubles in 2009), including expenses on RTS infrastructure development and setup of a new office to a value of 168 million rubles, which accounts for 22% of the total expenses. Expenses on computers and server equipment reached 33 million rubles, whereas software expenses made up 66 million rubles (9%). Assets acquisition cost the company 485 million rubles (64%) including the purchase of a stake in DCC for 438 million rubles. The growth of capital expenses in 2010 resulted mainly from the acquisition of assets and the setup of a new office. Assets and liabilities As of December 31, 2010, assets of RTS reached 39,801 million rubles showing a 36% increase (10,602 million rubles in absolute terms) as compared to 2009. The assets growth in 2010 resulted mainly from the growth in cash and cash equivalents, financial instruments and investments. As of December 31, 2010, the volume of cash and cash equivalents made up 15,616 million rubles. Cash is placed in current accounts and short-term deposits with major banks of the OECD countries, the Central Bank of Russia and one of the leading Russian banks (BBB credit rating by Fitch Ratings Agency). Financial instruments held for trading amounted to 16,248 million rubles including bonds of the Central Bank of Russia and federal loan bonds (16,239 million rubles), and municipal bonds of Moscow government (9 million rubles). The RTS Groups investments reached 5,370 million rubles. For a larger part these investments consist of long-term deposits. They also include investments in a number of associated and unconsolidated subsidiary companies. As of December 31, 2010, accounts receivable on repo trades made up 332 million rubles, which is 14% (42 million rubles) more than in 2009. Since September 2008, RTS Clearing Center has been acting as the Central Counterparty to trades executed on the cash equities market of RTS Stock Exchange. RTS Clearing Center guarantees the settlement of all on-exchange trades entered into with the CCP. It forms a pool of securities deposited in securities accounts with DCC. These securities are acquired by the RTS Clearing Center through a series of reverse repo trades. This pool of securities is created in order to ensure settlement of securities trades if for some reason securities cannot be delivered to the buyer who executed a trade on a certain cash equities market of RTS.

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Financial results of 2010

As of December 31, 2010, RTSs fixed and intangible assets made up 594 million rubles including property of 125 million rubles, intangible assets of 153 million rubles and equipment of 310 million rubles in cash equivalent. The year-on-year growth reached roughly 200%, with all intangible and fixed assets adding 299 million rubles. As of December 31, 2010, the total liabilities of the RTS Group stood at 34,467 million rubles. In 2010, the liabilities grew by 42% (10,154 million rubles) versus 2009. More than half of the said amount was used to increase the guarantee funds. As of December 31, 2010, shareholders equity amounted to 5,334 million rubles which is a 9% (447 million rubles in absolute terms) growth on 2009.

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

APPENDICES

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LIST OF SHAREHOLDERS OF OPEN JOINT STOCK COMPANY RUSSIAN TRADING SYSTEM STOCK EXCHANGE HOLDING 5% OF VOTING SHARES OR MORE, AS OF DECEMBER 31, 2010
Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more

Table 14.
Individuals full name/ Name of the legal entity Number of ordinary shares Number of blocked ordinary shares Number of votes Percentage of voting shares

Location

Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

ATON Limited Liability Company

27 Pokrovka St., Bldg. 6, Moscow, 105062, Russia 18 Krasnopresnenskaya Embankment, Block C, Bashnya na Naberezhnoy, Moscow, Russia 82 Sadovnicheskaya St., Bldg. 2, Moscow, 115035, Russia

157 055

157 055

9,82 %

Renaissance Broker Limited Liability Company

131 423

131 423

8,21 %

Closed Joint Stock company Deutsche Securities Closed joint stock company "Investment Company "Troika Dialog" Alfa Bank Open Joint Stock Company

143 997

143 997

9,00 %

4 Romanov Lane, Moscow, 125009, Russia 27 Kalanchevskaya St., Moscow, 107078, Russia

159 982

159 982

10,00 %

153 370

153 370

9,59 %

KIT Finance (Open Joint Stock Company) (nominee holder)

67-71 letter A Marata St., St. Petersburg, 191119, Russia

160 524

160 524

10,03 %

ING BANK (EURASIA) Z (CLOSED JOINT STOCK COMPANY) (nominee holder)

36 Krasnoproletarskaya St., Moscow, 127473, Russia

180 931

182 328

11,31 %

Citybank (Closed Joint Stock Company) (nominee holder)

8-10 Gasheka St., Moscow, 125047, Russia

113 586

113 586

7,10 %

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MEMBERS OF THE BOARD OF DIRECTORS OF RTS STOCK EXCHANGE


Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

As of January 01, 2010, the following persons sat on the Board of Directors of RTS Stock Exchange: Anatoly Grigorievich Gavrilenko Denis Viktorovich Soloviev Roman Yurievich Goryunov Aleksey Viktorovich Timofeev Jacques Der Megredichyan Ivan Aleksandrovich Tyryshkin Oleg Viktorovich Zhelezko Evgeniy Evgenyevich Fetisov Alexander Vladimirovich Kandel Maksim Yurievich Tsyganov Roman Yurievich Lokhov Andrey Viktorovich Shemetov Marlen Geraldovich Manasov Mikhail Vladimirovich Yudin Alexander Naumovich Pertsovsky Oleg Evgenievich Yachnik Viktor Mikhailovich Remsha On June 30, 2010, the following persons were elected to the Board of Directors of RTS Stock Exchange at the Annual General Shareholders Meeting: Anatoly Grigorievich Gavrilenko Denis Viktorovich Soloviev Jacques Der Megredichyan Mark Anatolievich Temkin Oleg Viktorovich Zhelezko Ivan Aleksandrovich Tyryshkin Anton Vyacheslavovich Zavjyalov Wiswel Timothy Bennet Roman Yurievich Lokhov Evgeniy Evgenyevich Fetisov Marlen Geraldovich Manasov Alexey Vladimirovich Tsyganok Alexander Naumovich Pertsovsky Andrei Viktorovich Shemetov Michael Pigiolis Oleg Evgenievich Yachnik Viktor Mikhailovich Remsha

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BRIEF INFORMATION ABOUT MEMBERS OF THE BOARD OF DIRECTORS OF RTS STOCK EXHANGE
Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Anatoly Grigorievich Gavrilenko (Member of the Board of Directors) Date of birth: July 20, 1946 Education details: M. Thorez Moscow State Institute of Foreign Languages, 1969, Foreign Language Assistant, majoring in English and Spanish; Foreign Trade Academy, 1984, Foreign Economic Relations (Foreign Trade Economics), qualified as an economist majoring in foreign economic relations with the knowledge of a foreign language Details of employment in other organizations (name of organization, position): 19992007 ALOR INVEST CJSC. Deputy General Director 20072009 ALOR INVEST CJSC. Chairman of the Board of Directors 2010 present ALOR Group of Companies. Chairman of the Supervisory Board Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Roman Yurievich Goryunov (Member of the Board of Directors until June 30, 2010) Date of birth: May 19,1975 Education details: St. Petersburg State Technical University, 1997, Information Systems in Economics Details of employment in other organizations (name of organization, position): 20022005 Not-for-profit partnership Russian Trading System Stock Exchange. Head of the Derivatives Market Department 20052007 Not-for-profit partnership Russian Trading System Stock Exchange. Vice-President 2007 present Open Joint Stock Company Russian Trading System Stock Exchange. Chief Executive Officer Not-for-profit partnership Russian Trading System Stock Exchange. President (second position) Stake in the share capital of RTS (ordinary shares of RTS): 0.7696% of the share capital (0.8% of the ordinary registered shares) of RTS

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Jacques Der Megredichyan (Chairman of the Board of Directors) Date of birth: October 22,1959 Education details: European Business Institute, 1984, Master of Economics; French Center for Financial Analysis, 1987, Financial Management Details of employment in other organizations (name of organization, position): 2000 present Investment Company Troika Dialog CJSC. Chief Executive Officer for Business Management Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Oleg Viktorovich Zhelezko (Deputy Chairman of the Board of Directors) Date of birth: September 26, 1969 Education details: Russian University of Chemical Technology, 1992; McKinsey mini-MBA programme (USA) Details of employment in other organizations (name of organization, position): 20042006 Renaissance Broker, LLC. Managing Director 20062007 Renaissance Capital Financial Advisor, LLC. General Director 2007 present Da Vinci Capital Limited Liability Company. Managing Director 2010 present Da Vinci Capital Limited (BVI). Director (second position) Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Anton Vyacheslavovich Zavjyalov (Member of the Board of Directors until June 30, 2010) Date of birth: January 17, 1970 Education details: London Business School, 2001; Moscow Institute of Electronic Technology, 1993 Details of employment in other organizations (name of organization, position): 2002 present Renaissance Capital Financial Advisor Limited Liability Company. Head of Fixed Income Franchise Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Alexander Vladimirovich Kandel (Member of the Board of Directors until June 30, 2010) Date of birth: October 14, 1971 Education details: Moscow Engineering and Physics Institute, 1994, Engineer and Physicist; The Academy of the National Economy under the Government of the Russian Federation, 1999, MBA Finance Details of employment in other organizations (name of organization, position): 19962002 ATON LLC. Financial Director 20032006 ATON Broker LLC. General Director 20062007 ATON Broker CJSC. General Director 20072009 UniCredit Aton CJSC. General Director 20092009 UniCredit Securities CJSC. General Director Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Roman Yurievich Lokhov (Member of the Board of Directors) Date of birth: June 19, 1976 Education details: Novosibirsk State University, major: Mathematical Methods and Economic Operations, qualification: Economist and Mathematician, 1998; Carl v. Ossietzky University Oldenburg PhD Economics. Desember 2004 Oldenburg. Germany. Kellog-WHU Executive MBA Starting date 15.09.2007 Germany-USA Frankfurt-Chicago, major: Economics, degree: Master of Economics Details of employment in other organizations (name of organization, position): 20052007 GL Trade AG Moscow Branch Moscow, Russia. Managing Director, Head of the Moscow Office 20072009 Limited Liability Company Otkritie Financial Corporation KIT Finance Investment Bank (OJSC). Managing Director - Global Markets 2007 present Otkritie Securities Ltd. London/UK. Director CEO (General Director)) 2007 present Otkritie finance (Cyprys) Limited Representative Office Frankfurt, Germany. Managing Director, Head of the Representative Office 2009 present Open Joint Stock Company OTKRITIE Joint Stock Bank. Managing Director, Head of the Capital and Investment Banking Capability Markets Transactions Division Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Marlen Geraldovich Manasov (Member of the Board of Directors) Date of birth: September 20, 1965 Education details: Lomonosov Moscow State University, 1990, Political Economy Details of employment in other organizations (name of organization, position): 20032008 UBS Securities CJSC. General Director 2008 present UBS Securities CJSC. Member of the Board of Directors Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Aleksander Naumovich Pertsovsky (Member of the Board of Directors) Date of birth: September 02, 1968 Education details: Moscow State Institute of Radio Engineering, Electronics and Automation, 1991, Engineer and Mathematician; Columbia Business School (MBA) New York Details of employment in other organizations (name of organization, position): 20022007 Renaissance Capital Investment Group. Deputy Chief Executive Officer 20072010 Renaissance Capital Investment Group. Chief Executive Officer 2004 present Renaissance Broker LLC. Consultant of General Director (second position) 2010 present Renaissance Capital Investment Group. First Deputy Chief Executive Officer, President Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Michael Pigiolis (Member of the Board of Directors since June 30, 2010) Date of birth: September 05, 1972 Education details: Coventry University, Business Computing, 1995; The University of Reading, MSc International Securities, Investment and Banking, 1996 Details of employment in other organizations (name of organization, position): 20032006 ATON Investment Group. Director, Head of Markets and Shares Division 20062008 Open Joint Stock Company BANK URALSIB. Managing Director for Trading and Stock Sales 2008 present Alfa Bank Open Joint Stock Company. Head of Markets and Shares Division Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Viktor Mikhailovich Remsha (Member of the Board of Directors) Date of birth: October 19, 1970 Education details: Moscow State Technical University, major: radio electronic systems, qualification: radio engineer, 1995 Details of employment in other organizations (name of organization, position): 20002009 FINAM Closed Joint Stock Company. General Director 2003 present Close Joint Stock Company FINAM Investment Bank. Director Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Denis Vyacheslavovich Soloviev (Member of the Board of Directors) Date of birth: January 12, 1971 Education details: Lomonosov Moscow State University, 1994; Griboedov Institute of International Law and Economics, 1998; University of Oxford Said Business School, 2007 Details of employment in other organizations (name of organization, position): 20032008 The National Depository Center. Deputy Director 2008 present Alfa Bank Open Joint Stock Company. Managing Director for Operating and Administrative Issues of the Corporate Investment Bank Division 2009 present Alforma Capital Markets. Director (second position) Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Mark Anatolievich Temkin (Member of the Board of Directors since June 30, 2010) Date of birth: May 08, 1974 Education details: Lomonosov Moscow State University, Economics, 1995 Details of employment in other organizations (name of organization, position): 20052007 Open Joint Stock Company BANK URALSIB. Chief Executive Officer of the Chief Executive Department for Investment and Banking Service 20062008 Uralsib Capital, Limited Liability Company. General Director (second position) 2008 present Uralsib Capital, Limited Liability Company. General Director Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Aleksey Viktorovich Timofeev (Member of the Board of Directors until June 30, 2010) Date of birth: May 03, 1972 Education details: Sverdlovsk Institute of Law (Ural State Academy of Law), 1994, Law, Lawyer Details of employment in other organizations (name of organization, position): 19982005 Stock Market Development Center Fund. Technical Adviser on Legal Matters 2005 present Self-regulatory Organization NAUFOR. Chief Executive Officer Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Ivan Aleksandrovich Tyryshkin (Member of the Board of Directors) Date of birth: August 09, 1973 Education details: Plekhanov Russian Economics Academy, 1995, Finance and Credit Details of employment in other organizations (name of organization, position): 20042006 Joint Financial Group CJSC. Senior Executive Director 20062008 ATON LLC. General Director 2008 present Rusgrain Holding. President 2009 present Faberge, LLC. General Director (second position) Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Wiswel Timothy Bennet (Member of the Board of Directors since June 30, 2010) Date of birth: January 22, 1979 Education details: Colby College, International Economy, 2001 Details of employment in other organizations (name of organization, position): 20042007 Closed Joint Stock Company United Financial Group. Assistant, Securities Trading Department 20082009 Closed Joint Stock company Deutsche Securities. Head of the Shares and Derivatives Trading Department 2009 present Closed Joint Stock company Deutsche Securities. General Director Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Evgeny Evgenievich Fetisov (Member of the Board of Directors) Date of birth: January 15, 1975 Education details: Financial Academy under the Government of the Russian Federation, Global Economy, 1992 Details of employment in other organizations (name of organization, position): 20042007 Europarts Ru, CJSC. General Director 20072007 Novaya Ploshchad, LLC (Moscow). Financial Director 2007 present Da Vinci Capital Limited Liability Company. Managing Director Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Maxim Yurievich Tsyganov (Member of the Board of Directors until June 30, 2010) Date of birth: November 06, 1972 Education details: St. Petersburg State University of Economics and Finance, qualification: Economist Details of employment in other organizations (name of organization, position): 20032005 Moscow Branch of Web-invest.ru Limited Liability Company. Head of the Branch 20022006 LenRos Invest Closed Joint Stock Company. General Director 20052007 KIT Finance Investment Bank (Open Joint Stock Company). Managing Director of the KIT Finance Investment Bank (OJSC) Branch in Moscow 20062007 KIT Finance (Limited Liability Company). General Director 20072008 KIT Finance Investment Bank (Open Joint Stock Company). Managing Director 20082008 KIT Finance Investment Bank (Open Joint Stock Company). Deputy General Director 20082009 KIT Finance (Limited Liability Company). President 2009 present KIT Finance IB (Limited Liability Company). General Director 2008 present KIT Finance Investment Bank (Open Joint Stock Company). Advisor to the General Director Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Alexey Vladimirovich Tsyganok (Member of the Board of Directors since June 30, 2010) Date of birth: June 04, 1971 Education details: Lomonosov Moscow State University, Applied Mathematics, 1993 Details of employment in other organizations (name of organization, position): 2002 present Closed joint stock company "Investment Company "Troika Dialog". Director of Global Markets Department Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Andrey Viktorovich Shemetov (Member of the Board of Directors) Date of birth: July 18, 1974 Education details: Ordzhonikidze State Academy of Management, major: Economics and Production Management, qualification: Economist, 1996 Details of employment in other organizations (name of organization, position): 20022007 Krasbank Commercial Bank Limited Liability Company. Head of the Stock Exchange Transactions Department 20082008 Strategy of Technological Investments Limited Liability Company. Head of the Analytical Department 2008 present ATON Limited Liability Company. General Director Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Mikhail Vladimirovich Yudin (Member of the Board of Directors until June 30, 2010) Date of birth: July 10, 1970 Education details: Moscow State Institute of International Relations of the Russian Ministry for Foreign Affairs, 1994, International Economic Relations Department Details of employment in other organizations (name of organization, position): 2003 present Deutsche Securities, CJSC. General Director Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Oleg Evgenievich Yachnik (Deputy Chairman of the RTS Board of Directors) Date of birth: August 02, 1951 Education details: Bauman Moscow Higher Technical School, 1974, Frames Production, Doctor of Engineering Details of employment in other organizations (name of organization, position): 1992 present OLMA Investment Company. General Director 2002 present OLMA Holding CJSC. General Director (second position) 2006 present Omelis CJSC. General Director (second position) 2008 present Toros CJSC. General Director (second position) Stake in the share capital of RTS (ordinary shares of RTS): none

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CHIEF EXECUTIVE OFFICER AND MEMBERS OF THE EXECUTIVE BOARD OF RTS STOCK EXCHANGE
Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

As of December 31, 2010, the RTS Executive Board included the following persons: Roman Yurievich Goryunov (position of Chief Executive Officer) Maxim Leonidovich Volkov Sergey Alexandrovich Zamolotskikh Igor Vasilyevich Larionov Svetlana Viktorovna Rybina Andrey Alexeyevich Salaschenko Evgeny Vladimirovich Serdyukov Andrey Valentinovich Uralsky

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BRIEF INFORMATION ABOUT THE CEO AND MEMBERS OF THE EXECUTIVE BOARD OF RTS STOCK EXCHANGE
Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Roman Yurievich Goryunov (Chief Executive Officer of RTS) Date of birth: May 19, 1975 Education details: St. Petersburg State Technical University, 1997, Information Systems in Economics Details of employment in other organizations (name of organization, position): 20052007 Not-for-profit partnership Russian Trading System Stock Exchange. Vice-President 20072007 Open Joint Stock Company Russian Trading System Stock Exchange. Deputy Chief Executive Officer 2007 present Not-for-profit partnership Russian Trading System Stock Exchange. President (second position) 2007 present Open Joint Stock Company Russian Trading System Stock Exchange. Chief Executive Officer Stake in the share capital of RTS (ordinary shares of RTS): 0.7696% of the share capital (0.8% of the ordinary registered shares) of RTS

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Maxim Leonidovich Volkov (Member of the Executive Board) Date of birth: February 08, 1982 Education details: Moscow University for the Humanities, 2004, Law, Lawyer, Master of Laws MBA Finance, the Academy of National Economy under the Government of the Russian Federation, 2009 Details of employment in other organizations (name of organization, position): 20042005 OAO RAO UES of Russia. Examiner-in-Chief of the Corporate Governance Analysis and Control Division, Corporate Center Corporate Governance Department 20052008 OAO RAO UES of Russia. Head of Shareholder Relations and Liquidity Maintenance Organization Division, Corporate Center Corporate Governance and Shareholder Relations Department 2008 present Open Joint Stock Company Russian Trading System Stock Exchange. Director of the Corporate Development Department Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Sergey Alexandrovich Zamolotskikh (Member of the Executive Board) Date of birth: January 10, 1980 Education details: St. Petersburg State University, 2002, Economics Department Details of employment in other organizations (name of organization, position): 20052007 Not-for-profit partnership Russian Trading System Stock Exchange. Head of the New Products Division, Derivatives Market Department 20072009 Open Joint Stock Company Russian Trading System Stock Exchange. Head of the New Products and Technologies Department 2009 present Open Joint Stock Company Russian Trading System Stock Exchange. Director of the Infrastructural Projects Department Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Igor Vasilyevich Larionov (Member of the Executive Board) Date of birth: May 12, 1972 Education details: Moscow Economic and Statistical Institute, 1994, Economic Cybernetics, Economist Mathematician; The Institute of State and Law of The Russian Academy of Sciences, 2002, Law, Lawyer Details of employment in other organizations (name of organization, position): 20052006 Stock Market Development Center Fund. Technical Adviser on Legal Matters 2006 present Open Joint Stock Company Russian Trading System Stock Exchange. Deputy Chief Executive Officer Director of Legal Department 2006 present Not-for-profit partnership Russian Trading System Stock Exchange. (second position) 2010 present RTS Clearing Center, Closed Joint Stock Company. Deputy General Director (second position) Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Svetlana Viktorovna Rybina (Member of the Executive Board) Date of birth: December 05, 1972 Education details: Russian State University for the Humanities, Data Protection Managing Engineer Details of employment in other organizations (name of organization, position): 20052007 Transcapitalbank (OJSC JSCB). Deputy Director of the Treasury 20072007 Transcapitalbank (OJSC JSCB). Director of the Treasury 2007 present Open Joint Stock Company Russian Trading System Stock Exchange. Director of the Stock Market Department Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Andrey Alexeyevich Salaschenko(Member of the Executive Board) Date of birth: September 12, 1980 Education details: Financial Academy of the Government of the Russian Federation, 2002 Details of employment in other organizations (name of organization, position): 20042007 FFMS of Russia. Deputy Head of the Securities Market Supervision Organization Department 20072009 Open Joint Stock Company Russian Trading System Stock Exchange. Head of the Commodities Market Department 2009 present Open Joint Stock Company Russian Trading System Stock Exchange. Director of Authorities and Professional Entities Relations Department Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Evgeny Vladimirovich Serdyukov (Member of the Executive Board) Date of birth: December 01, 1975 Education details: Auezov South-Kazakh State University, 1998, Civil Engineer, qualification: Industrial and Civil Engineering; St. Petersburg State Technical University, 2001, Economist, qualification: Finance and Credit Details of employment in other organizations (name of organization, position): 20052007 Not-for-profit partnership Russian Trading System Stock Exchange. Head of the Derivatives Market Development Division 20072009 Open Joint Stock Company Russian Trading System Stock Exchange. Head of the Futures and Options Market Participants Relations Department 2009 present Open Joint Stock Company Russian Trading System Stock Exchange. Director of the Derivatives Market Department Stake in the share capital of RTS (ordinary shares of RTS): none

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Andrey Valentinovich Uralsky (Member of the Executive Board) Date of birth: 01.09.1960 . Education details: Lomonosov Moscow State University, 1982, Economist Cybernetician, qualification: Economic Cybernetics; Central Economic Mathematical Institute, 1987, Ph.D. in Economics Details of employment in other organizations (name of organization, position): 20002007 DCC CJSC. Vice-President for Economy and Finance 2007 present Open Joint Stock Company Russian Trading System Stock Exchange. Deputy Chief Executive Officer for Finance Director of the Finance Department 2008 present Not-for-profit partnership Russian Trading System Stock Exchange. Vice-President (second position) Stake in the share capital of RTS (ordinary shares of RTS): none

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KEY AMENDMENTS TO THE DOCUMENTS OF THE RTS GROUP


Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Amendments to the Articles of Association and other internal documents On August 10, 2010, due to the change of RTS location, the new edition of the Articles of Association of RTS was registered which had been approved by the Annual General Shareholders Meeting on June 30, 2010. Amendments to the RTS documents governing the RTS activities associated with the securities trading organization In 2010, the following key amendments were made to the RTS documents governing the RTS activities associated with the securities trading organization: an opportunity was envisaged to conclude at the RTS trading in the Exchange Trading Mode with T+4 settlements (RTS Standard) transactions resulting from the fulfillment of derivatives contracts concluded at the RTS trading; an opportunity was determined to file at the RTS trading bids containing more than one offer to conclude transactions in the Exchange Trading Mode with T+4 settlements (RTS Standard); there was an expansion of the list of security types which may be engaged in concluding transactions at the RTS trading (the list of securities was supplemented by the Russian depositary receipts on shares and bonds); there was an adjustment in the grounds and procedure for the RTS trading suspension, as well as the grounds and procedure for the suspension/termination of access of trading participants to the Exchange trading; transfer of the trading session opening time to 10:00 am; transfer of the maturity time of delivery obligations under transactions concluded at the RTS trading in the Exchange Trading Mode with T+4 settlements to 05:00 pm; introduction of an opportunity to conclude at the RTS trading in the Exchange Trading Mode with T+4 settlements REPO transactions based on zero-address bids; introduction of an opportunity to conclude at the RTS trading in the Exchange Trading Mode with T+4 settlements (RTS Standard) transactions subject to specific application, with the minimum maturity period on the day of such transactions;

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Amendments to the RTS documents governing the RTS activities associated with the provision of services which directly promote the conclusion of contracts which are derivatives In 2010, the following amendments were made to the Regulations of Conclusion of Derivatives Transactions of the Open Joint Stock Company RTS Stock Exchange: in view of the necessity to reduce the load on trading systems and as a competitive advantage of RTS, the opening time of trading in the Derivatives Market Section was transferred from 10:30 am to 10:00 am MSK; in view of the introduction of the single delivery technology on transactions involving futures contracts for which the basic asset is securities and which have been concluded in the Derivatives Market Section as well as transactions concluded in the Exchange Trading Mode with T+4 settlements, there was an amendment made to the contents of bids and procedure of filing bids aimed at conclusion of derivatives transactions. In 2010, due to the keen interest of trading participants, the following specifications were approved: specification of a futures contract for the two-year federal loan bonds; specification of a futures contract for the four-year federal loan bonds; specification of a marginable option on the RTS Standard Index futures contract; specification of a copper futures contract. In 2010, due to the launch of a new system of establishing the dates of the last day of conclusion and day of contract performance, new editions of the following specifications were approved: specification of the RTS Index futures contract; specification of the RTS Standard Index futures contract; specifications of the Industrial RTS Indices futures contracts. In 2010, in view of the launch of indicative exchange rates calculation and agreement upon the Procedure for Calculation of Indicative Exchange Rates, the following specifications were approved: specification of a USD/CHF exchange rate futures contract; specification of a USD/JPY exchange rate futures contract.

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Amendments to the RTS documents governing the RTS activities associated with the receipt of reports on OTC trades In 2010, the following key amendments were made to the RTS documents governing the RTS activities associated with the receipt of reports on OTC trades: Amendments were made to the Regulations on Submission of Details of OTC Trades by Brokers, Dealers, Managers, Joint Stock Investment Funds and Management Companies and Maintenance of the OTC Trades Register, associated with increasing the time of submission of OTC Trades reports during the day. Amendments to the documents of RTS Clearing Center governing the procedure of clearing In 2010, RTS Clearing Center made the following basic amendments to the Regulations on Clearing Activities (Regulations on Clearing Activities on the Securities Market): adding the description of the clearing procedure in the course of performance of deliverable derivatives contracts with shares as the basic asset, which result in concluding transactions at the RTS trading in the Exchange Trading Mode with T+4 settlements (RTS Standard); adding the description of the clearing procedure in the course of conclusion and performance of foreign currency trades; adding the description of the clearing procedure for futures and options trades executed on the market of Open Joint Stock Company SPB.

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REPORT ON THE DISTRIBUTION OF ANNOUNCED DIVIDENDS ON RTS SHARES


Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

On June 30, 2010, the Annual General Shareholders Meeting decided to allocate an amount of 114,590.7 thousand rubles for the distribution of dividend on RTS shares, including: 68 rubles 38 kopecks per ordinary RTS share (the total amount for all ordinary RTS shares is 109,407.93 thousand rubles); 0 rubles 82 kopecks per preferred RTS share (the total amount for all preferred RTS shares is 5,182.77 thousand rubles). In accordance with the said decision of the Annual General Shareholders Meeting, the distribution of dividend must be completed within the term no later than December 31, 2010. The dividend was distributed in full within the established term.

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CRITERIA FOR DETERMINATION OF THE SIZE OF REMUNERATION PAYABLE TO EXECUTIVE BOARD MEMBERS AND MEMBERS OF THE BOARD OF DIRECTORS OF RTS
Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

The rate of remuneration of the Chief Executive Officer is determined by the RTS Board of Directors, and the rate of remuneration of the members of the Executive Board is determined by the RTS Chief Executive Officer within the scope of his powers. On June 30, 2010, the RTS Annual General Shareholders Meeting approved the Provision on payment of remuneration to the members of the RTS Board of Directors, under which the rate of remuneration of a member of the RTS Board of Directors is 500 thousand rubles for an accounting operating period of the Board of Directors. The said remuneration is paid to a member of the RTS Board of Directors provided that he has directly participated in (attended) at least half of the physical meetings of the Board of Directors which were held during the accounting operating period of the Board of Directors. The accounting period is calculated from the moment of electing a member of the Board of Directors by the Annual General Shareholders Meeting until the termination of his powers at the next RTS Annual General Shareholders Meeting. The total amount of remuneration to be paid to the members of the Board of Directors at the end of a financial year is approved by the RTS Annual General Shareholders Meeting. The remuneration is paid within 90 days after the date of holding the RTS Annual General Shareholders Meeting which was held following the accounting operating period of the Board of Directors, provided that the members of the Board of Directors have been supplied with the required documents. In case of an early termination of powers of a member of the RTS Board of Directors whose actual operating period in the Board of Directors was more than half of the accounting period, the remuneration is paid in the amount of 250 thousand rubles. In such case, remuneration is paid to such member of the RTS Board of Directors provided that he has directly participated in (attended) at least half of the physical meetings of the Board of Directors which were held after his election to the Board of Directors until the date of early termination of powers. The total amount of remuneration to be paid to the members of the Board of Directors in case of an early termination of their powers, is approved by the RTS Extraordinary Board of Directors which considers the issue of early termination of powers of members of the Board of Directors. The remuneration is paid within 90 days after the date of accounting statement compilation following the date of termination of powers of a member of the Board of Directors, provided that the members of the Board of Directors have been supplied with the required documents. On June 30, 2010, the Annual General Shareholders Meeting also decided to pay remuneration to the members of the Board of Directors in view of the results of the 2009 financial year for a total amount of 8.5 million rubles. The said remuneration was paid in full within the established term.

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POWER CONSUMPTION

Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

As a socially responsible company, RTS is specifically focused on such projects as energy supply employment minimization. Since RTS in its day-to-day activities systematically employs electric power, the holding company has developed and is currently implementing an action plan which provides for the best application of such resources. Among the basic efforts which are being taken to this end are the following engagement of up-to-date energy saving devices and appliances; supervision over the electric power distribution in various periods of time; continuous monitoring of the consumed power resources. In 2010, RTS consumed the following total energy resources: Table 15.
Costs of acquisition and consumption for the purposes of products manufacture (rubles) 1 498 865,43

Energy type electric

Power resources consumption (kW) 436 592,90

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GLOSSARY

Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

Share a security which grants the owner (shareholder) the rights to receive a share of the Joint Stock companys profit as dividends, take part in management of the Joint Stock company and receive part of the property remaining after the issuers liquidation. Exchange Open Joint Stock Company Russian Trading System Stock Exchange, OJSC RTS, RTS, RTS Stock Exchange. Unlisted securities admitted to trading a section of the List of securities that is meant for securities that have not undergone the listing procedure. Guarantee fund obligatory contributions of the members of the Settlement Chamber (in cash or in securities). Delisting the process of removing securities from quotation lists by the exchange. Investment Unit a registered security certifying its owners title to property which constitutes the fund. Clearing a system of mutual non-cash settlement for goods, securities and services based on the calculation of mutual financial claims and obligations. Quotation List a section of the List of securities that is meant for securities that have undergone the listing procedure. Listing the process of admitting securities by the exchange to a quotation list. Market Maker a trading participant of the exchange who has signed a market maker agreement either with the exchange, or with the exchange and the issuer of securities. Netting a process where the clients monetary claims are offset against the clients monetary obligations. Bond a security that obligates the issuer to pay the holder a fixed sum of money at a specified time in the future, or pay a pre-determined revenue fixed as a percentage of the bonds face value. Option Contract an agreement under which a buyer receives the right (but not the obligation) to buy or sell assets at a fixed price. Delivery versus payment a principle of settling securities transactions which ensures a simultaneous transfer of money to the seller and securities to the buyer.

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

RDR Russian Depository Receipts. REPO a trade to sell securities executed on an organized securities market simultaneously with a trade to repurchase these securities after a specified period and at a higher price. List a list of securities admitted to trading on the markets of RTS (the list of all securities which may constitute the subject of trades executed on the markets of RTS). RTS Board List a list of securities admitted to indicative quotation on RTS Board. Trading Participant a participant of trading organized by RTS. Stock Market an organized market for trading securities. Futures Contract an agreement to deliver a specific asset in the future. Securities financial instruments issued by companies, financial and state organizations to borrow funds and raise new capital. Central Counterparty a party to trades and obligations. EAC Electronic Agreement Center, a system which automates the exchange of electronic documents in order to execute sale and purchase agreements. EDS electronic digital signature. DMA Direct Market Access, direct access to trading securities for clients of brokerage companies. FIA Futures Industry Association. FISD The Financial Information Services Division of the Software & Information Industry Association. FORTS futures and options market of RTS.

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FOW Futures & Options World.

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Appendices
List of shareholders of OJSC RTS holding 5% of voting shares or more Members of the Board of Directors of RTS Stock Exchange Brief information about members of the Board of Directors of RTS Stock Exhange Chief Executive Officer and members of the Executive Board of RTS Stock Exchange Brief information about the CEO and members of the Executive Board of RTS Stock Exchange Key amendments to the documents of the RTS Group Report on the distribution of announced dividends on RTS shares Criteria for determination of the size of remuneration payable to Executive Board members and members of the Board of Directors of RTS Power consumption Glossary

OTC over-the-counter market where securities transactions are executed directly between the two parties. RTS Board RTSs information system for indicative quotation of securities not admitted to trading on RTS. RTS Global over-the-counter market for foreign securities. RTS Start a segment of the RTS securities market created for companies with small and medium market capitalization. RTS Plaza a software system and database installed on the market operators computer which allows securities transactions to be executed in real-time. WFE World Federation of Exchanges.

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RTS Stock Exchange 4/7 Vozdvizhenka Str, Bld 1 Moscow, Russia 125009 Phone: +7 (495) 705-90-31, 500-38-40 E-mail: info@rts.ru www.rts.ru