September 6, 2005

Commission rates for REPO transactions in bonds, concluded in the stock market, will change beginning from 15 September 2005, following the decision of the Board of the MICEX Stock Exchange and the Exchange Council of the Moscow Interbank Currency Exchange. The total amount of a trader▓s expenses connected with the payment of the commission to the MICEX Stock Exchange and the MICEX for each REPO transaction in bonds, concluded in the REPO trading mode, will be limited to:

• 300 rubles: for transactions with settlement codes R01-R06, i.e. transactions concluded for the period of one to six calendar days inclusive;

• 1500 rubles: for transactions with settlement codes R07-R30, i.e. transactions concluded for the period of seven to thirty calendar days inclusive.

The adopted measure significantly reduces the costs of participants in the REPO market in bonds (3 to 4 times on average).

The decision was made as part of the project to create a new trading mode: ⌠bonds REPO■. The project is to be implemented in the 4th quarter of 2005. It is aimed at developing and launching a specialized exchange product providing market participants with new possibilities to carry out REPO transactions in bonds, in particular, REPO transactions without control of coverage of the first part of the transaction, REPO transactions with deferred execution of obligations connected with the first part of the transaction (not on the day of transaction), as well as intra-day REPO transactions. The new ⌠bonds REPO■ trading mode will involve the use of compensation fees as a standard mechanism of control of market risks and default risks. At present, the MICEX Stock Exchange is studying the needs of market participants with the aim of adapting the new procedures of REPO operations in bonds and the new specialized exchange product to them.

Changes in commission rates for REPO transactions in bonds are aimed at maintaining the advantages of the exchange REPO market in bonds during the transition period, increasing the average volume of transactions, widening the circle of participants in trading and improving liquidity in this segment of the market.