ETS OVERVIEW KAZAKHSTAN MARKET SUMMARY ETS A UNIVERSAL EXCHANGE FOR THE PARTICIPANTS

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Rafe Allen
10 years ago
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1 COMMODITY EXCHANGE

2 ETS OVERVIEW KAZAKHSTAN MARKET SUMMARY ETS A UNIVERSAL EXCHANGE FOR THE PARTICIPANTS

3 Еurasian Тrade System new step in the development of exchanges market of Kazakhstan is a Markets and products Participants ETS leading commodity and the only one derivative exchange, based in Almaty venue using trading system developed by RTS the largest derivative exchange in CIS spot market agriculture (wheat, barley, flour, etc.) oil and petrochemicals industrial products (cement) derivatives market wheat futures non-ferrous metals futures (gold, silver, copper) oil futures specialized goods (state procurements) 26 participants, o/w: 15 spot market participants 12 derivatives market participants Shareholders shareholders structure as of 01 September 2011: RTS 60% RFCA 40% 3

) oil and petrochemicals industrial products (cement) derivatives market wheat futures non-ferrous metals futures (gold, silver, copper) oil futures specialized goods

4 The history of ETS October 2011 April 2011 Application for MAB CIS December 2010 Launch of industrial products and petrochemicals trading September 2009 Launch of specialized goods trading with NWF Samruk-Kazyna April 2009 Launch of derivatives market wheat futures December 2008 Launch of agriculture spot trading (T+0/T+n) Foundation of Еurasian Тrade System 4

trading with NWF Samruk-Kazyna April 2009 Launch of derivatives market wheat futures

5 Management of ETS key to successful development of the exchange Orazaev Kurmet Chairman of the Executive Board Since February 2009 Kurmet is a Chairman of the Executive Board of ETS. In First Deputy Chairman of the Executive Board of Kazpost. In Kurmet worked in State Asset Management Company Samruk". Kurmet graduated East Kazakhstan State University, State Agrarian University named after K.A.Timiryazev. Zviagin Valery Deputy Chairman of the Executive Board Since April 2009 Valery is a Deputy Chairman of the Executive Board of ETS. In 2009 Valery worked as Director of Commodities Department in RTS. In 2005 Valery joined RTS as Deputy of Director of Derivatives market (FORTS). Valery graduated from Moscow Power Engineering Institute. Mamedov Ali Deputy Chairman of the Executive Board Since April 2009 Ali is a Deputy Chairman of the Executive Board of ETS. In Ali worked as Executive Director of logistics in "MHIndustry". Ali graduated from Moscow State University. 5

Kurmet graduated East Kazakhstan State University, State Agrarian University named after K.A.Timiryazev.

6 ETS OVERVIEW KAZAKHSTAN MARKET SUMMARY ETS A UNIVERSAL EXCHANGE FOR THE PARTICIPANTS

7 Republic of Kazakhstan favorable economic situation and new opportunities for growth Market Overview Over 12 commodity exchanges, of which only ETS operates modern trading platform and provides full range of trading and post trading services. Derivatives market has significant growth potential: - low volume to production ratio in Kazakhstan (1% for gold futures in Kazakhstan vs. 12% in Russia) - yet low internet-trading penetration - the market is still under penetrated in terms of individual investors amounts: less then 0.002% of population trade on stock exchange vs. 0.5% in Russia ETS benefits from Public-Private Partnership In April 2011 the Government approved a list of goods to be traded on a commodity exchange (Grain, Cement and Oil products) At the beginning of 2011 there were successful trial procurement auctions by the NWF Samruk-Kazyna Leadership Strategy Product mix improvement (ETS is technically prepared to launch futures on currency, single stock futures and futures on stock index). To become the leading access provider to the Kazakh commodity and derivatives market for local and global investors Attract new clients, both individuals and brokers Internet-trading development in cooperation with the stock market participants To capture 50%+ market share of commodity market Promotion of derivatives market amongst retail investors 7

12% in Russia) - yet low internet-trading penetration - the market is still under penetrated in terms of individual investors amounts: less then 0.

8 ETS OVERVIEW KAZAKHSTAN MARKET SUMMARY ETS A UNIVERSAL EXCHANGE FOR THE PARTICIPANTS

9 New trading sections of ETS cover the needs of new participants ETS OFFERS trading opportunities: modern in-house IT trading system CCP T+0/T+n settlement wide product mix for different trading and hedge strategies easy connection educational initiatives for professional participants and retail investors attractive conditions for Market Makers ETS INTENDS to attract new participants for the development of Internet trading in Kazakhstan Diversification of exchange trading volume of ETS in 2011 led to the improvement of ETS positions in Kazakhstan, USDm м 2011 Agriculture Oil & petrochemicals Derivatives market Industrial products Specialized goods ETS aims to attract new and develop existing clients to uncover the market potential Exchange trading volume by key participants: Plankion Invest Derivatives market, H % Other 43% Torino 06 FB Capital 13% Spot market, H Astana- Agro Trade Business other Astana Zolotie 5% 4% Polya 9% 37% Central Asia Cement Source: ETS Since the launch of trading on ETS the share of exchange traded wheat vs production in Kazakhstan grew from 3% in 2007 up to 25% in % 20% 10% KTZC 40% 31% Torino Wheat exchange traded volume, USDm 0% exchange traded volume as a % from wheat production (right axis) Source: ETS Source: Kazstat 9

development of Internet trading in Kazakhstan Diversification of exchange trading volume of ETS in 2011 led to the improvement of ETS positions in Kazakhstan, USDm 600 500 400 300 200 100 0 2009 2010

10 Starting from the end of December 2010 the number of participants doubled and reached 26 in October 2011 Participant Trading section Agriculture Oil & petrochemicals Industrial products Derivatives market Specialized goods Agro Trade Astana Alibi + Altair-Nur Altyn-Biday Alem Munai Gaz + Arzan LTD Astana-Business Trade and Transport Company + BANKER CONSULTING + Сentral Asia Cement + CAIFC + FB Capital Grain Trade + RESMI + KazAgroMarketing + Kazakh-Tadjik grain company KZ TransStroy Nauryz FinCap Nomad Finance + Prioritet Consulting Real-Invest.kz + Plankion Invest + Torino VISOR Capital + Zernosnab Zolotye polya

and Transport Company + BANKER CONSULTING + Сentral Asia Cement + CAIFC + FB Capital + + + + + Grain Trade + RESMI + KazAgroMarketing + Kazakh-Tadjik grain company + + + + + KZ

11 ЕURASIAN ТRADE SYSTEM +7 (727) Kazakhstan, Almaty, 136 Dostyk ave., RFCA Business Center THANK YOU FOR YOUR ATTENTION

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