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REGULATIONS ...................................................................................................................................................................................... 2 Ministry of Justice Registers Order by FFMS on Requirements for СSD’s Code of Professional Ethics ...................................... 2 FFMS of Russia Publishes Order on Calculation of Equity Funds ................................................................................................. 2

MARKET NEWS .................................................................................................................................................................................... 3 Account Chamber of Russia to Work under International Standards ............................................................................................. 3 State Duma to Free Eurobonds ....................................................................................................................................................... 3 First Future Contract for BRICS .................................................................................................................................................... 3

MICEX-RTS GROUP ............................................................................................................................................................................. 4 KSD (The Republic of Korea) and NSD (Russia) sign mou on information sharing and cooperation ........................................... 4 Kemerovo JSC Azot Shares to Be Excluded from List of Securities Circulated through NSD Inter-Depository Schemes ............ 5 NSD to act as the settlement depository for trades executed in Standard sector ............................................................................. 5 MICEX-RTS to Get a New Name .................................................................................................................................................. 6 NSD to Develop Road Maps for Interactions with Registrars ........................................................................................................ 6 Urals Stampings Plant Shares Admitted to Circulation Using Inter-Depository Schemes ............................................................. 7 Bella Zlatkis Heads NSD Supervisory Board ................................................................................................................................. 7 NSD Reports RUB2.287 Billion Net Profit for 2011 According to RAS ....................................................................................... 8 MICEX-RTS Derivatives Market Committee Holds a Meeting ..................................................................................................... 9

PROSPECTS............................................................................................................................................................................................ 9 Financial Stability Council to be Established in Russia ................................................................................................................. 9

FUTURE EVENTS ................................................................................................................................................................................ 10 Events Calendar ........................................................................................................................................................................... 10

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CONTENTS

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REGULATIONS

Ministry of Justice Registers Order by FFMS on Requirements for СSD’s Code of Professional Ethics

02.05.2012, Interfax The Ministry of Justice registered the Order by the FFMS of Russia “On Establishing Requirements for CSD’s Code of Professional Ethics”.

According to this order, the Code should set the procedures to reveal and prevent conflict of interests, to prevent the usage of information available o the CSD by the CSD staff, to protect commercial or other secret protected by law and other standards of the professional ethics.

The Law on Central Securities Depository came into force on 1 January 2012. The Order of the FFMS of Russia “On Establishing Requirements for CSD’s Code of Professional Ethics” was the first related document registered in the Ministry of Justice.

Previously in April the Deputy Head of the FFMS Sergey Kharlamov had announced that the applicant for the status of the CSD would be able to submit all the documents required for qualification in the second quarter.

FFMS of Russia Publishes Order on Calculation of Equity Funds

29.05.2012, RBC-Daily The Federal Financial Markets Service (FFMS) published a new order on calculation of equity funds.

The order was discussed at the council for non-banking financial market by leaders of self-regulatory organizations, including the National Association of Securities Market Participants (NAUFOR), the Professional Association of Registrars, Transfer Agents, and Depositories (PARTAD), the National League of Managers, and others. Professional market participants are worried about the fact that the FFMS proposed to lower corrective coefficients from 1 to 0.7 for real estate property and to 0.5 for computers hardware and transport. Software and cash in cash registers will not be considered in calculation of capital.

According to Petr Lanskov, Deputy Chairman of the Board of PARTAD, this could worsen financial position of professional market participants. “In fact, it means tightening capital requirements”, he explained.

The Service elaborated this document on calculation of equity funds in order to take consideration of liquid assets that could be realized in a short period of time if necessary. Furthermore, in order to filfil its supervisory functions, the FFMS requires the documents proving that the assets concentrated in equity funds belong to this very company, according to the FFMS.

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MARKET NEWS

Account Chamber of Russia to Work under International Standards

14.05.2012, finmarket.ru The Head of the Account Chamber of the Russian Federation Sergey Stepashin announced that the Chamber had elaborated a new version of the draft law on financial supervision and control allowing to work under international standards. The announcement came in the course of his meeting with Russian President Vladimir Putin. During the election campaign the President had spoken of the necessity to adopt a new approach for staffing the Account Chamber’s governance board.

Mr. Stepashin also mentioned that in December the General Assembly of the United Nations had for the first time discussed the issue of the independent financial control and had approved a resolution to bring the legislation of UN countries in line with the international law. According to Mr. Stepashin, this was the main reason why the Account Chamber approved a new version of the law allowing to work under international standards.

State Duma to Free Eurobonds

21.05.2012, RBC-Daily The Committee on Budget and Taxes attached to the State Duma proposed to approve in the second reading the amendments which would free Eurobonds’ issues from the necessity of acting as tax agents for the income tax of companies where it deals with paying interest income to bondholders. Exemption will apply in case there is a double taxation treaty with the country where the SPV (Special Purpose Vehicle) was created. Eurobonds themselves will have to be listed on one or several foreign stock exchanges or to be safekept in depositories authorized by the Federal Financial Markets Service.

The Chairman of the Committee on Budget and Taxes Andrey Makarov explained that it was impossible to tax interest on Eurobonds because Russian companies have no information on the final beneficiaries of those funds. He added that the situation with taxation of Eurobonds worsened the position of companies on debt markets.

First Future Contract for BRICS

31.05.2012, RBC-Daily BRICS countries plan to launch a single index and a futures contract called BRICS Alliance Index. Experts at MICEX-RTS suppose that this instrument will be of much interest for institutional investors – funds and fund managers.

RBC Daily reports that BRICS exchanges such as MICEX-RTS, BM&F Bovespa, BSE, HKEx and JSE plan to launch a single index in the course of further cooperation and later a futures contract for instruments traded on these floors.

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It will much depend on indices of separate drating floors, cross-listing of which the exchange plans to launch in the nearest time. Brazil Bovespa Stock, FTSE/JSE South Africa, Bombay BSE Sensex and Hang Seng Index will be listed in Russia. Experts at MICEX-RTS note that these instruments will allow to trade indices without physical presence on external floors and with reduced costs.

Nikolay Podlevskikh, Head of the Analytical Department at Zerich Capital Management points out that the instrument might be interesting for funds investing in emerging markets, especially when the performance of BRICS Alliance Index will sufficiently differ from that of stock indices of developed countries. He also mentioned that derivatives in the single index will allow to mobilize venture capital that in is turn would increase liquidity.

MICEX-RTS GROUP

KSD (The Republic of Korea) and NSD (Russia) sign mou on information sharing and cooperation

02.05.2012 Seoul and Moscow - Korea Securities Depository (KSD) and National Settlement Depository (NSD) signed a Memorandum of Understanding (MOU) on May 2, 2012.

KSD and NSD will establish, under the terms of the MOU, a basis of cooperation in securities depository and settlement related matters to help foster the prosperity of their financial markets, promote cross border investment, and explore opportunities of cooperation in both depository and settlement operations and establishment of an operation linkage.

The parties also agreed to lay the groundwork for the exchange the information and provision of training and technical support with regard to services or business-related matters on the development of the fund industry of both countries.

The companies anticipate developing a closer working relationship in the future, and wish to maintain channels of communication for exchange of information, and to promote visits for reasons of friendship and other business purposes by personnel of the companies.

Speaking on this occasion, Mr. Kyung Dong Kim, Chairman and CEO of KSD, said: "This is the first step towards a partnership for mutual cooperation on the development of depository and settlement infrastructures and advancement of the asset management industry. With signing of this MOU, I hope we can develop a new future together."

Mr. Eddie Astanin, Chairman of the Executive Board of NSD, commented: "NSD’s integration into the world market and in the global infrastructure, through cooperation with key national infrastructure institutions such as the Korea Securities Depository, is in line with our company’s development strategy. We are very happy to begin our cooperation and we hope it will be long-lasting and mutually rewarding."

Prior to the signing ceremony the representatives of NSD and KSD have visited the orphan home #53 supported by NSD for a long time. In the framework of "Expanding Borders of Social Responsibility" charity event the representatives of KSD have granted computers and office equipment to the orphan home, and NSD’s executives have provided graduation suits and dresses to the children.

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About KSD Korea Securities Depository (KSD) is the sole central securities depository of Korea, providing services for issuance, deposit, settlement and exercise of rights as a core capital market infrastructure. KSD also offers a wide range of value-added services such as securities lending and borrowing, tri-party Repo and transfer agent services. For further information about KSD, please visit http://www.ksd.or.kr

Kemerovo JSC Azot Shares to Be Excluded from List of Securities Circulated through NSD Inter-Depository Schemes

15.05.2012 MOSCOW – National Settlement Depository (NSD), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, announces that starting 16 May, the shares of Kemerovo JSC Azot (Taxpayer Identification Number 4205000908) are excluded from a list of issuers with shares circulated by means of inter-depository schemes of NSD's interactions with DCC, ZAO Citibank and ING Commercial Banking (ING BANK (EURASIA) ZAO).

The exclusion is connected with forthcoming buyback of Kemerovo JSC Azot common shares in compliance with the Clause 84.8 of the Federal Law #208-FZ "On Joint Stock Companies" dated 26 December 1995.

An updated list of issuers with shares which may be transferred using inter-depository schemes of NSD's interactions with DCC, ZAO Citibank and ING Commercial Banking (ING BANK (EURASIA) ZAO) is available at NSD’s web site (in Russian).

NSD to act as the settlement depository for trades executed in Standard sector

16.05.2012 Starting from May 21, 2012 trades executed in the Standard sector of the Exchange’s Securities market will be settled using trading sections typed “Blocked for clearing. RTS Standard” of the securities accounts opened with National Settlement Depository (NSD).

DCC will continue to perform functions as the settlement depository for a while, including registering securities deposited as collateral assets.

The move represents the next stage in integrating National Settlement Depository and DCC implying planned migration of all settlement functions to NSD.

In March 2012, NSD’s participants were permitted to set up sections with the following types: “Blocked for clearing. FORTS” and “Blocked for clearing. RTS STANDARD”.

For any questions regarding settlement through NSD, please contact:

• personal managers in NSD for opening trading sections;

• Irina Antipova, Irina Zhigunova, Svetlana Vasilieva and Irina Chaptykova in RTS Clearing Center for registering trading sections for settlement at

• +7 (495) 363-32-32, ext 26090, 26094, 26095, 26038.

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The MICEX-RTS Group is the Russia’s integrated exchange business based on the comprehensive trading and settlement infrastructure that provides a wide range of opportunities to Russian and foreign investors for equities, bonds, currencies as well as derivatives trading. OJSC MICEX-RTS and CJSC MICEX Stock Exchange act as trading organizers within the Group. National Settlement Depository, CJSC Depository Clearing Company and RTS Settlement Chamber provide settlement and depository services. CJSC RTS Clearing Center and CJSC National Clearing Center render clearing services. Trading on the securities market of the MICEX-RTS Group is held in the following sectors: Main market, Standard sector and Classica sector. Trading in derivatives instruments is carried out on the FORTS Derivatives market (for futures and options on equities, bonds, currency and commodities) and MICEX Derivatives market (for futures on currency and interest rates). The Money market consists of two sections; one is for government securities repo operations and money market instruments and the other is for repo operations in equities and bonds. The MICES Index and RTS Index, the main benchmarks of the Russian stock market, are calculated on the basis of securities prices formed in the order books of the MICEX-RTS Securities market. The indices are calculated continuously from 10.00am MSK to 11.50pm MSK. The MICEX-RTS sector indices have been transformed into a single product line with unified calculation procedures and securities baskets.

MICEX-RTS to Get a New Name

17.05.2012, http://rts.micex.ru The MICEX-RTS Executive Board will put an item on changing the Exchange's business name on the agenda of the Board of Directors meeting.

The full business name "Moscow Exchange MICEX-RTS" that covers both the status of the integrated organization and continuity of the business has been chosen after consultations and selecting 500 possible names by experts. The short business name will be "Moscow Exchange".

In case the new name is approved by the Board, it will be submitted for consideration at the AGM and takes effect after changes to the Articles of association of the company are made.

NSD to Develop Road Maps for Interactions with Registrars

18.05.2012 MOSCOW – National Settlement Depository (NSD) announces that it has begun developing bilateral road maps in conjunction with registrars interested in testing of procedures and technologies of interactions with the central depository. At the first stage the company will be working on the road maps together with CJSC VTB Registrar, CJSC Irkol, CJSC Computershare Registrar, and CJSC STATUS.

The core idea of the bilateral road maps is to unify procedures and to test technologies of practical interactions of the central depository and registrars in accordance with the Federal Law #414-FZ “On the Central Depository” dated 7 December 2012. In particular, the road maps will describe the practical implementation of the following procedures: opening nominee holder’s account in the register, reconciling data during conducting operations of writing off (crediting) securities in the register, daily reconciliation, compiling lists of securities owners prior to the meetings of the shareholders and corporate actions. Special attention will be paid to the procedure of securities buyback operations in the registers in compliance with the Federal Law #208-FZ “On Joint Stock Companies” dated 26 December 1995.

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Eddie Astanin, Chairman of the Executive Board, NSD, stated: “One of important goals of development of the bilateral road maps is to form issuers’ and Russian public companies shareholders’ clear vision of the practice of compliance with the law on the central depository. We think it is crucial to begin working on issues falling within registrars’ and depositories’ competence and provided by current Russian legislation. However, some procedures and technical solutions will be clarified only upon completion of the process of formation of the central depository’s regulatory framework.”

NSD’s Committee for Interactions with Registrars and Depositories will consider the Regulations on Procedure of Interactions with Registrars and Depositories at the next meeting. This document has been prepared on the basis of solutions jointly developed by NSD’s and PARTAD’s profile committees. NSD’s and registrars’ expert vision regarding the procedure of interactions between the central depository and registrars is to be submitted to Russia’s Federal Financial Markets Service after discussing it with the PARTAD on 21 May.

Mr. Astanin adds: “We consider the legal base regulating the process of switching to the new market model, as well as the bilateral road maps, not only as a way to settle technical issues but also as an important signal to the global investment community. Our consultations with major international investors reveal that these issues are of their interest, and the ways of solving them will be taken into consideration by risk managers assessing Russian investment assets which eventually determine the biggest global players’ investment policy.”

Urals Stampings Plant Shares Admitted to Circulation Using Inter-Depository Schemes

22.05.2012 MOSCOW – National Settlement Depository (NSD) expands a list of issuers with shares circulated by means of inter-depository schemes of NSD's interactions with DCC and ZAO Citibank.

Since 21 May 2012, shares of Urals Stamping Plant OJSC are to be included in the list.

An updated list of issuers with shares which may be transferred using inter-depository schemes of NSD's interactions with DCC and ZAO Citibank is available at NSD’s web site (in Russian).

Bella Zlatkis Heads NSD Supervisory Board

28.05.2012 MOSCOW – National Settlement Depository (NSD) reports that on 25 May it held an Annual General Meeting of the company’s shareholders (AGM).

The company's shareholders elected 15 members of NSD Supervisory Board.

At the first meeting of NSD Supervisory Board conducted after the AGM its members elected Bella Zlatkis the Board's Chairperson. Mikhail Bratanov was elected the Board's Deputy Chairman.

Alexander Ikonnikov, an independent member of NSD Supervisory Board, has been elected the Chairman of the HR and Remuneration Commission of the Supervisory Board. Mr. Ikonnikov was authorized to nominate the candidates to the chairpersons of the commissions of the Supervisory Board, and the candidates to the HR and Remuneration Commission.

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The following persons were elected the members of the company’s Audit Committee:

• Olga Gordienko, Chief Accountant, MICEX-RTS

• Irina Ryazhskikh, Director of Budgeting and Management Accounts, MICEX-RTS

• Vladimir Sukhachyov, Chief of Internal Audit Service, MICEX-RTS

The AGM approved the new version of NSD’s Charter. In particular, the new version reflects provisions connected to the names of bank operations changed in compliance with the Federal Law #162-FZ “On Amending Certain Legislative Acts of the Russian Federation following the Adoption of the Federal Law On the National Payment System” dated 27 June 2011; with the Federal Laws #414-FZ “On the Central Securities Depository” dated 7 December 2011 and #161-FZ “On National Payment System” dated 27 June 2011.

The shareholders also approved the company's annual report and annual financial statements for 2011, and took into consideration the Audit Committee’s report based on results of the audit of NSD's financial and economic activities for 2011.

NSD's shareholders also approved Ernst&Young Vneshaudit CJSC to conduct the RAS and IFRS audit until the date of NSD's AGM planned to be held in 2013.

NSD Reports RUB2.287 Billion Net Profit for 2011 According to RAS

28.05.2012 MOSCOW – National Settlement Depository (NSD) reports that on 25 May it held its Annual General Meeting of shareholders (AGM). The company’s shareholders approved 2011 RAS financial statements. The company’s net profit after tax amounted to RUB2.287 billion; this is 122% more than for 2010 (RUB1.032 billion).

NSD’s revenues for 2011 reached RUB4.437 billion, growing 109% against RUB2.122 billion for 2010. The company’s operating expenditures stood at RUB1.442 billion or 98.5% more compared with RUB726.554 million for 2010.

The key factor contributed to NSD’s income and expenses growth in 2011 was the fact that the company’s profit and loss report for 2011 included indicators of the integrated company’s operations for 12 months, and the report for 2010 included only MICEX Settlement House’s indicators and reflected NDC’s indicators for just two months - from 3 November 2010 (the date of NDC and MICEX SH merger) to 31 December 2010.

The AGM resolved to pay dividends on the company’s shares in the amount of RUB1,016.37 per one common registered share (before tax paid on income received in the form of dividend in compliance with the Paragraph 3 Clause 284 of the Tax Code of the Russian Federation). According to the shareholders’ resolution, the dividend is payable 60 days after the day of making the resolution on dividend payment by the AGM. RUB1.2 billion will be allocated for dividend payment.

Eddie Astanin, Chairman of the Executive Board, NSD, stated: “Being a backbone organization of Russian financial market, NSD pays great attention to its absolute financial stability, as well as to its transparent, stable and predictable tariff policy formed by the Supervisory Board and the company’s customers.”

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MICEX-RTS Derivatives Market Committee Holds a Meeting

30.05.2012, http://rts.micex.ru On May 29, 2012 a meeting of the MICEX-RTS Derivatives Market Committee took place. At the end of the meeting the Committee members decided to advise the Exchange's management to synchronize the trading calendar for the MICEX-RTS Group's markets with foreign trading venues and discussed parameters of underlying assets of index futures contracts and changing parameters of such contracts.

To synchronize the trading calendar, the Committee recommended opening all the Group's markets if one of more holidays in Russia falls on business days in the exchanges in the United Kingdom and the United States. At the same time, the Committee advised that markets should be closed during public holidays in Russia, i.e. on 1 January and 7 January, 1 May and 9 May, 12 June and 4 November.

In addition, the Committee members agreed on the suggestion to employ prices of the Main Market instead of the Classica and Standard sectors as a source of prices for calculation of the RTS Index. Furthermore, they recommended that the price tick value for index futures and options should be changed from 5 to 10 basic points. The change is planned to take place respectively after nearby June and September futures are settled.

“The Committee has decided to change the price tick value for the contracts on the RTS Index, RTS Standard Index and MICEX Index based on recommendations of the working group that was established in order to elaborate solutions for boosting liquidity on the market. According to experts' opinion, proposed changes will entail increase of quick liquidity for contracts on the indices”, said Evgeny Serdyukov, Managing Director of Derivatives Market at MICEX-RTS.

PROSPECTS

Financial Stability Council to be Established in Russia

23.05.2012, RIA NOVOSTI According to Andrey Lozovoy, assistant to the Financial Policy Department of the Ministry of Finance, speaking at “Investments in Russia” forum, the Ministry of Finance is working on the establishment of a Financial Stability Council that would settle issues related to Russia’s macroeconomic and monetary policy.

He explained that the new institution’s structure and functions are currently being discussed. According to him, the council will include representatives from the Ministry of Finance, the Ministry for Economic Development, the Bank of Russia, the Federal Financial Markets Service (FFMS) and any of the newly appointed government officials.

Andrey Lozovoy explained tht in fact the financial stability council will be similar to the council in France and the Federal Open Market Committee of the US Federal Reserve System.

It has not yet been settled which body the financial stability council will be attached to. It may be attached to either the Council for Financial Narket Development headed by first vice Prime Minister Igor Shuvalov, or an institution under the Bank of Russia’s wing or an institution under control of the President or the government.

Andrey Lozovoy also mentioned that its functions and targetswill be much similar to the working group for the establishment of an International Financial Center in Russia headed by Alexander Voloshin.

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FUTURE EVENTS

Events Calendar

Event Location Date Contact information

Russian Securities Forum Baltchug Kempinski, Moscow, Russia

6-7 June, 2012 http://www.informaglobalevents.com/event/Russia-Securities-Forum-conference

Network Management Forum 2012

Budapest, Hungary 12-13 June, 2012 http://www.informaglobalevents.com/event/network-management-event

19th Annual European Clearing & Settlement

Hyatt Regency - The Churchill, London, UK

27-28 June, 2012 http://www.informaglobalevents.com/event/European-Clearing-Summit-conference

17th Saint Petersburg International Banking Conference

Corinthia hotel, Saint-Petersburg, Russia

11-14 July, 2012 http://spbconf.com/

IX International Conference of AECSD Kiev, Urkaine 6-8 September,

2012 http://aecsd.com/en/

TradeTech Russia - Russia's Premier Equities and Derivatives Trading Summit

Renaissance Moscow Hotel, Moscow, Russia

25-27 September, 2012

http://www.wbresearch.com/tradetechrussia/

Sibos 2012 Osaka, Japan 29 October 2012 – 1 November, 2012

http://www.sibos.com

XII Conference of Professional Financial Market Participants

Moscow, Russia 8 November, 2012

http://www.ifru.ru/5015/

IIX Russian Bond Congres

Saint-Petersburg, Russia

December, 2012 http://cbonds-congress.com/events/