June 8, 2005

The MICEX Group has celebrated the 12th anniversary of the creation of the Russian government securities market. The market began with the RF Finance Ministry▓s first auction to issue three-month GKOs (21001rmfs issue), which was held on the MICEX in May 1993. At the ceremony, the MICEX announced the results of the work of the government securities market and awarded prizes to active market participants.

According to the MICEX CEO Alexander Potemkin, the infrastructure of the government securities market (GS) has proved its reliability and effectiveness. This is acknowledged by market participants and market regulators as well as by leading international experts. Today, the GS market has become a full-fledged branch of the Russian economy. Even in the context of stable budget surplus the business community realizes the necessity of an effective GS market as an instrument of managing the government debt, providing a benchmark for the national economy (the level of risk-free interest rates).

The market is based on a unique infrastructure, in which the MICEX plays a key role. The MICEX serves a basis for a national electronic system of trading in government securities, covering Russia▓s eight main financial centers. A whole range of operations in government securities (GKO, OFZ, OBR, eurobonds) is carried out in the MICEX system: from primary placement and secondary trading to redemption of issues and payment of coupon yields on bonds.

Today, the GS market is:

• trade volume: over 600 billion rubles;

• daily turnover: about 5 billion rubles;

• 275 official dealers √ leading banks and financial organizations;

• about 7 thousand institutional and individual investors, including nonresidents.

The GKO/OFZ market continues to develop rapidly. Today, the focus is made not so much on volumes as on new technologies and new instruments (OBR, eurobonds, direct and reverse REPOs, BMRs and others).

At the ceremony, the MICEX CEO Alexander Potemkin said that the success was achieved thanks to the effective work of the whole professional community: the RF Finance Ministry, the Bank of Russia, the MICEX, the National Depositary Center, the MICEX Settlement House, regional exchanges and professional participants in the market.

Their contribution to the development of the stock market was marked by special prizes.

Dealers-leaders in the MICEX GS market (April 2004 — April 2005)

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