Actuality March 6, 2008

   Federal Financial Markets Service (FFMS) prepared the new strategy of the Russian capital market development. In the regulator opinion, the Russian stock exchanges should amalgamate, so that in the future they could turn into the financial center of world scale. The market participants will discuss the FFMS strategy, and in May the document will be introduced to the government.

   Vladimir Milovidov, who in May, 2007

changed Oleg Vyugin on the post of the FFMS head, declared from the work start that the Russian capital market priority task is opposition to the foreign rivals.

In Milovidov opinion, it is possible to fight with the external opponent only by means of all players' joint efforts.

   One should consolidate the market participants first so then to consolidate the efforts.

It is easy to do this by means of the main Russian s

tock floors amalgamation.

First of all it goes about MICEX (Moscow Interbank Currency Exchange) and RTS (Russian Trading System). The industry development strategy should be introduced to the government already in May.

For amalgamation strategy are set the certain terms, writes Vedomosti newspaper.

   So, it is assumed that two rivals can amalgamate by 2010.

It is stated in the strategy, that now RTS and MICEX have already determined their specialization.

And appearingly, within the framework of the only stock exchange, MICEX will be directly responsible for the spot stock market, and RTS – for derivatives and forward market.

    The stock exchange group can hold IPO for its capitalization increase since 2011.

At first one could offer the stocks

the Russian investors, and in 2013-2015 – the foreign ones, is said in the strategy. Thus, already by 2011 the Central Bank leaves the list of MICEX stockholders.

Although, the Bank is the largest securities holder of this stock exchange.

   After the stock exchanges' amalgamation it would be probably possible to solve the sore point about the single depositary center. Moreover, that would enable to reduce the transaction costs of trade participants. And in the end, that should result in the trade volumes' increase. According to the forecast given in the strategy, by 2020 the single Russian stock exchange could lead the trades' volume to RUR 210 trln a ye ar. It is a bit more, than the annual trades' volume at the London Stock Exchange in 2007.