Micex | News Room | MICEX and Deutsche Börse AG sign memorandum of understanding

MICEX and Deutsche Börse AG sign memorandum of understanding

December 22, 2006

Frankfurt am Main, 21 December 2006. Today, the MICEX and Deutsche Börse AG have signed a memorandum of mutual understanding. The main goal of cooperation between the two exchanges is the development of the infrastructure of the Russian and the Germanо financial markets on the basis of advanced exchange technologies as well as the attraction of additional investments in national companies. The parties believe that this will contribute to the development and strengthening of economic cooperation between Russia and Germany.

The spheres of interaction between the MICEX and Deutsche Börse AG include the exchange of information, activities connected with dual IPOs, the attraction of foreign investors to trading in national stock assets, the dissemination of exchange information, index management, the development of the clearing system, the system of risk management and trading systems.

According to Reto Francioni, CEO of Deutsche Börse, ⌠With the Memorandum of Understanding we formalize our long-standing relationship with the MICEX. The MoU will be an important step towards bringing European and Russian market participants closer together.■

According to the MICEX President Alexander Potemkin, ⌠the signing of the memorandum makes a significant contribution to the integration of Russia into the world financial community. It confirms that the MICEX meets the standards of the international capital market.■

At present, the MICEX takes an active part in the creation of the Russian financial market. The Exchange is developing the stock market by increasing the number of its participants and the number of traded instruments. It helps Russian companies to enter the public capital market. The MICEX continues to develop its derivatives market, build an up-to-date clearing system and modernize its technological base. The MICEX▓s cooperation with one of the world▓s leading exchanges enables it to use the extensive experience accumulated by the Deutsche Börse in these areas.

Deutsche Börse AG is an integrated exchange providing services connected with organizing electronic trading, clearing, settlements, as well as depository and information services. Deutsche Börse AG is the head company of Deutsche Börse Group. Since 1993, Deutsche Börse AG has been the operator of Frankfurter Wertpapierbörse. The Exchange holds 100% of shares in Clearstream (the central depository for the markets of Germany and Luxemberg and an international depository on the market for Eurobonds and shares), 50% of shares in Eurex (the world▓s largest exchange for trading in derivative financial instruments) and 100% of shares in Deutsche Börse System (a technological complex). Trading in the market for spot instruments is held on Xetra platform (electronic trading and the "open outcry" system), launched in 1997. Deutsche Börse AG has over 2900 employees. Its offices are located in Germany, Spain, Luxemburg and Switzerland. The Exchange has its representative offices in Hong Kong, Dubai, London, New York, Paris and Chicago.

The MICEX Group (www.micex.com) holds the central place in the infrastructure of the Russian capital market. It integrates the trading and settlement systems on a single technological platform. The MICEX Group is comprised of the Moscow Interbank Currency Exchange, the MICEX Stock Exchange, the National Mercantile Exchange, the MICEX Settlement House, the National Depository Center, The National Clearing Center, regional currency and stock exchanges and other organizations. The MICEX Group provides trading, settlement, clearing and depository services to 1500 leading Russian banks and brokerages √ participants in the exchange market √ in Moscow and Russia▓s largest financial and industrial centers. At present, The MICEX Group has several key markets: the foreign exchange market, the share market, the market for corporate and regional bonds, the government securities market, the money market and the derivatives market. Having implemented an up-to-date electronic trading and depository system, the MICEX became a universal financial exchange, serving as a basis for the national system of trading in all main segments of the financial market. In 2006, the volume of exchange-based trades made within The MICEX Group is expected to reach about 50 trillion rubles (about 1.9 trillion dollars), which is about double the size of the country▓s GDP. The Exchange▓s share in the total volume of trading on all of the RF exchanges is over 90%.