Overview of the Russian Metals Market: key facts and trading volume; TOP-30 derivatives exchanges and plans for 2012: repo trades on precious metals markets, physical delivery under derivatives contracts. Sergey Danov, Head of Commodities Market RTS

1. OVERVIEW OF THE
REGULATED PRECIOUS
METALS MARKET
24 November 2011 Sergey Danov,
Moscow Director of Commodities Market
RTS Stock Exchange

2. RTS IS THE LEADING DERIVATIVES EXCHANGE IN
EASTERN EUROPE
Infrastructure
• Central Counterparty to
on-exchange trades
• Settlement infrastructure
•139 accredited brokerage
companies and banks
• Reliable risk
management system
(successful stress tests -
1998, 2008, 2011)
Overview of the regulated bullion market

3. DEVELOPMENT OF THE BULLION DERIVATIVES MARKET
Key facts 2006-2011
• 4 metals
(gold, silver, platinum, palladium)
, 7 instruments (4 futures, 3
option contracts)
• Average daily trading volume
has increased 150 times to 1.5
million troy ounces
trading volume breakdown by investors
• In 2011 the number of traders
reached 12,939, a 50% growth
on 2010 figures
Overview of the regulated bullion market

4. LIQUID REGULATED MARKET
Key facts 2006-2011
• Average number of trades per day –
11,897
• Average trade size – 6.5 oz
• Average bid/offer spread for gold
contracts – $0.8/oz, for silver
contracts – $0.04/oz
Overview of the regulated bullion market

5. Overview of the regulated bullion market
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MAIN STRATEGIES ON THE PRECIOUS METALS MARKET
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$2.0
-$2.0
-$4.0
-$6.0
-$8.0
$4.0
$0.0
-$10.0
$4.0
$2.0
$0.0
-$2.0
-$4.0
-$6.0
-$8.0
-$10.0
Spot vs. derivatives
Ask Comex – Bid RTS
Arbitrage trades:
Ask Spot – Bid RTS
spread:

6. PLANS FOR 2012

7. PROSPECTIVE DEVELOPMENT PROJECTS
Regulated spot metals Metals derivatives market
market
• Repo trades on the precious • Physical delivery under
metals market derivatives contracts
• Commodity ETF:  Via unallocated metal
 Issuers – banks and accounts set up with
investment companies accredited banks
 Underlying metals –  Automated procedure
gold and silver  Risk management by the
 Assets safekeeping – exchange
bank vaults or CBR
vaults
• OTC trades clearing
Overview of the regulated bullion market

8. THANK YOU FOR YOUR ATTENTION!
Contacts:
Tel.: +7 (495) 705-90-31, ext 123
E-mail: email@rts.ru
Web: www.micex.ru, www.rts.ru
Reuters: MICEX, RTSMAIN