BELARUSIAN CURRENCY AND STOCK EXCHANGE ANNUAL REPORT 2010

Transcription

1 BELARUSIAN CURRENCY AND STOCK EXCHANGE ANNUAL REPORT 2010

2 CONTENT TO OUR SHAREHOLDERS MARKETS AND SERVICES DEVELOPMENTS IN 2010 CURRENCY MARKET STOCK MARKET OTC MARKET SERVICES. BEQAS FUTURES MARKET SETTLEMENT AND CLEARING SYSTEM DEPOSITORY ACTIVITY INFORMATION ACTIVITY INTERNATIONAL COOPERATION ORGANIZATION AND TECHNOLOGICAL DEVELOPMENT PROJECTS FOR 2011 FINANCIAL PERFORMANCE Yield structure by activity type in 2010 Balance sheet as of December 31, 2010 Profit and loss report for 2010 AUDITOR S REPORT EXCHANGE MARKET IN FIGURES EXCHANGE SECTION MEMBERS TOTALS OF THE EXCHANGE MARKET STOCK MARKET GS/STB NB RB MARKET GS/STB NB RB MARKET INDICES Non-government securities market Equity market Non-government debt market Statistics by non-government bonds types Exchange-traded bonds Bank bonds backed by home equity loans Investment bank bonds Non-bank Investment bonds Municipal loan bonds FOREX MARKET FUTURES MARKET OTC Registration totals BCSE BASIC RULES AND REGULATIONS Requirements to Section members Requirements to issuers to be admitted to circulation and placement at BCSE Trading modes

3 TO OUR SHAREHOLDERS DEAR SHAREHOLDERS, Reviewing the history of the Belarusian Currency and Stock Exchange (BCSE), we can state that the Stock Exchange has been keeping its traditions continuing its active development, constantly initiating new projects, increasing the number of products, its customer base and range of services. Being the main indicator of the stock market effectiveness, the trading turnover of BYR 88 trillion in 2010 is an obvious proof of that. In a series of innovative projects, technologies - as the foundation of the exchange business - traditionally kept a central place last year. Such important tasks as new architecture of the stock market trading system; BEQAS platform change; modernization and expansion of the SED; replacement of network infrastructure core were solved in In line with technological developments, key activities directions, the effectiveness of customer and post-trading services were improved. The currency market participants were enabled to use the SED opportunity, to work with such a new financial instrument as Yuan/Ruble, to operate via remote trading terminals, and to use a voice-supported trade module. The technology for the organized stock market was adapted to new rules and standards of the NB RB auction transactions that enabled the launch of bonds with a partial repayment. Broker and dealer companies were provided with an opportunity to load customer information automatically from the back-office systems. Due to newly developed module BEKAS IQS "OTC Market", unorganized securities market in 2010 moved to new technical standards for transactions registration. Key features of a new module imply automation of the entire range of operations, from order submission to its completion followed by signing in SED, statistical information support, electronic directory of all traded securities in Belarus. Based on the achieved results, the BCSE will continue its development based on three main goals cutting-edge technologies, strict focus on customers needs, and business diversification in Major projects 2011 will be linked to the Concept of Clearing and Settlement System for We have already started the solution of our main tasks, such as accumulating financial resources; developing regulations, technical and project documentation for creating a sound clearing house in Belarus with full range of services; introduction of new settlement mechanisms and risk tolerant systems. Our own network infrastructure updating, server virtualization based on VMware vsphere software, further enhancement of the electronic document system, upgrading and introduction of the updated Internet systems of the BCSE (corporate website and IS "Stock Market" site) - are the key issues of our plans for the soft- and hardware base development, expansion of spheres of its use, increasing reliability and fault tolerance. Near-term outlook for the stock market is circulation of NB RB bonds in accordance with corporate securities market rules, creating necessary conditions for trading in securities in foreign currency, launching index for municipal, corporate and other nongovernment bonds. To conclude, I would like to underline that our plans go hand in hand with the financial market development in general. Being capable to influence the market efficiency, our primary goal is to promote the market growth, its reinforcement and integration into the global financial system. Achieving these ambitious plans largely depends on the support of our shareholders, customers and partners. We have been feeling this support during all our activity and hope to keep it in future. Thank you for your confidence, understanding and assistance in solving our common problems. Chairman of the Supervisory Council of the Belarusian Currency and Stock Exchange Taras Nadolny Chairman of the Board of the Belarusian Currency and Stock Exchange Pavel Tsekhanovich

4 MARKETS AND SERVICES DEVELOPMENTS IN 2010 The total trading value in all exchange market segments increased by 7.5 per cent if compared to 2009 and amounted to BYR 87,759.1 billion (USD 29.4 billion) in Daily average trading value increased up to BYR billion (USD million), accordingly. The main volume accounted for the currency market sector (72.1 per cent) and the government securities sector (20.0 per cent). CURRENCY MARKET In 2010 the volume of transactions in the organized currency market totaled BYR 63,278.0 billion or USD 21.2 billion (BYR 39,370.5 billion or USD 14.1 billion in 2009). The trading value in ruble equivalent increased by 60.7 per cent if compared to Projects for the exchange services development Introducing the electronic document system In order to introduce the system of electronic document circulation (SED) of the BCSE into the exchange currency market, ASET "Trading in Foreign Currencies" system and SED had been updated within the year. In particular, electronic documents templates formed upon the trading results and containing a necessary metadata set for SED processing were created within the limits of the trading system. The electronic document system updating was connected with realization of the following procedures adjusted for the exchange currency market functioning: recall and removal of electronic documents, introducing the function of priority order for subscribers, the access order for unsubscribed SED participants to view the document, realization of the additional control level, and other interface possibilities. Transition to remote trading platforms All the preparations for transition to remote trading platforms in the exchange currency market were completed in According to the Currency Market Section members proposals, an additional system of exchange messages was improved as a separate functional block to provide a radio voice communication between the BCSE and the participants using remote trading platforms, for their participation in a "fixing" mode trades. This level of interaction enabled to combine mechanisms of vocal and electronic trade due to the usage of a Radmin software as a basic platform. Detailed listing procedures for non-resident banks During the year under report a number of amendments were introduced into the Currency Market Section Membership Rules regarding detailed elaborations of the admission procedure for non-resident banks at the organized currency market. In particular, the BCSE expanded the list of documents confirming the legal capacity of a legal entity (a non-resident bank) to operate in the currency market of the country of registration, and, consequently, empowering to carry out similar operations in Belarus if there are any corresponding international contracts. Amendments and additions to these Rules have been approved by National Bank of Belarus and have come into force. Risk control systems development Within the context of imposing additional measures for banks failed to comply with financial requirements and/or obligations upon concluded transactions, several amendments were introduced to the Regulations for Trades in Foreign Currencies regarding the transfer of those participants to participation in trades on a base of full reservation of funds. Improving the tariff policy The procedure of lowering the exchange rates was introduced in 2010 for transactions carried out by participants at the expense of the state budget funds. Consequently, mechanisms of individual operation data record were introduced for the banks participated in trades. New financial instrument Within the previous year, amendments and additions into the Day Trading Regulations were developed, approved and became effective. These Regulations regulate the circulation of a new financial instrument - the Chinese Yuan - at the Stock Exchange.

5 STOCK MARKET The total volume of the exchange trades in all types of securities amounted to BYR 24,440.1 billion, or USD 8,216.4 million in 2010 (BYR 42,206.4 billion, or USD 15, million in 2009, accordingly) having reduced by 42.1 percent in ruble equivalent in relation to The maximum volume of operations has been fixed in the government securities sector, accounting for 71.7 percent. The equity sector has been actively developed, having providing percent growth. Projects for the exchange services development Developing auction algorithms of trade New trading algorithms were developed within the year and introduced in They provide the following: Introduction of updating mechanisms for REPO auctions prices and rates, taking into consideration discounting established by the trading agent; Automatic calculation of the size of the lot for government securities repaid according to the algorithm determined by the Ministry of Finance; The control over the securities circulation period to enable conducting transactions in securities on the repayment day; The control over the issuers powers regarding participation in REPO auctions of their own securities; The multiposition mechanism for securities and funds to enable auction operations of direct (reverse) REPO simultaneously with several types of securities, irrespective of their sector division (government and nongovernment securities), etc. Full transfer of document circulation of the stock market into an electronic platform During the period under review a new version of the securities trading system was updated and introduced to fully integrate with system of electronic document circulation (SED) of the BCSE providing the following: Development of the separate module that enables to form and import documents into the SED; Transfer of all kinds of final documents in the form of electronic documents containing a necessary set of metafields (more than 40 forms); Creating new report documents; Creating a flexible filtration system to enable generating documents within the selected sample and their further import into the SED; Changing the mechanisms for calculation of the market price of issued securities In compliance with the decision of the Ministry of Finance No. 44 as of April 8, 2010 On some questions on calculation of the market price of issued securities and cancellation of the decision of the Securities Committee as of April 24, 2003 regarding temporal increase of basis for market price calculation from 30 till 90 trading days, necessary technical measures were undertaken to introduce a new formula of market price calculation in the trading securities system. Development of listing procedures In order to improve the listing procedure, several changes and amendments were introduced in 2010 into the Listing Rules of the Belarusian Currency and Stock Exchange, providing the following: Avoiding the duplication of reports submitted by members of Stock, Currency and Futures Markets Sections for listing procedure purposes and further maintenance of their securities in quotation lists in case when these documents have been already provided for membership purposes; Formalization of publication requirements for annual balance in mass media for issuers who operate less than one year, as well as issuers not being open joint-stock companies, introducing the control over the publication of issuers annual balances in mass media; Registration of exchange-traded bonds issues upon the legal entity s application being not the issuer of these securities; A more precise definition of bonds of the National bank listing at the BCSE. The automated system "Listing" was improved to enable automatic updating of issuers data and their securities admitted to circulation at the BCSE on the base of normalized electronic messages by the Republican Central Securities Depository. The corresponding changes were made to expand and to change the content of registration information on exchange-traded bonds. Moreover, the system was adapted to

6 register government securities with partial redemption in accordance with the Ministry of Finance proposals. Besides, the first stage of introduction of additional possibilities to use abbreviation (ticker) names for securities integrated with the trading complex was completed. Extending the services provided to the Stock Market Section members Within the work with the Stock Market Section members, functional requirements were developed to import automatically the information on the customers and securities positions from the trading participants software to the trading system database. Besides, the first electronic remote client terminal was installed in the exchange securities market and started to operate in 2010 to provide a customer with the possibility to participate in the securities trading through his broker in a real time mode, including trade monitoring, purchase and sale order-input, and proving control over his own position. Improving organizational procedures In order to simplify organizational procedures, several changes and amendments were introduced to the Rules of purchase and sale transactions in nongovernment securities, and to the Admission conditions to trades in non-government securities, containing the following norms: The mechanism of informing the market participants about exchange fee rates was changed; The minimum term for prior notification of auction parameters was established; Strict obligation to develop regulations while establishing additional parameters of auction was removed; Precise criteria for cancelled or failed auctions were established; Terms and conditions of an auction are specified for orders submitted by one participant; The consideration procedure of an application submitted for trading agent activity performance was changed accordingly. In addition, the procedure of decision-making and notification on the accepted decision to a suspend participant admission to trading in securities is specified in the Admission conditions to trades in non-government securities at the BCSE. Participating in developing the regulations for the republican securities market functioning During the year under report, a number of proposals were introduced into the following projects: The Law of the Republic of Belarus On Securities and Stock Exchanges ; The development program for the securities market of Belarus for ; The Ministry of Finance decision regulating the formation of the securities market price and its value control; The instruction of the Ministry of Finance On some questions about securities issues ; The instruction of the Ministry of Finance Order of execution of transactions in securities in Belarus»; The instruction of the Ministry of Finance Order of issue, placement, circulation and repayment of certain kinds of government securities of Belarus ; The instruction of the Securities Committee at the Council of Ministers Order of information reporting and disclosing by the securities market participants. OTC STOCK MARKET SERVICES. Belarusian Quotation Automated system (BEQAS) There were 900 quotations of 108 issuers, 347 quotations of 87 issuers, and 326 bids of state owned share holdings offered for sale in the «Indicative bids» BEQAS module through There were transactions registered in the OTC Market BEQAS IQS module, that is 20.8 percent more than in Projects for the exchange services development Introducing the OTC Market BEQAS IQS module In 2010, the professional participants of the securities mark et started to operate in a new OTC Market BEQAS IQS module developed in This high-technology integrated complex is designed with the help of cutting-edge

7 architecture providing the most effective conditions for information processing. This decision offers the market participants essentially new working conditions, enabling to integrate information system with a number of internal and external systems (including system of electronic document circulation, resources of the RUE RCSD and the National Bank, databases of the operating program complex of the BCSE), to raise its serviceability, and to improve its safety, compatibility and maintenance. Developing the interface functions of the OTC Market BEQAS IQS module After its successful introduction in 2010, there was further improvement of the user interface upon participants` proposals, and other measures for adaptation IQS OTC Market to changing conditions of its functioning. Thus, within the previous year the following innovations were introduced: The import functions providing more flexible adaptation of data transfer files to the participants software were updated; Formats of electronic documents signed in the SED system of the Stock Exchange were updated to meet new metadata requirements being the basis for establishing the order of subscribers, and for providing SED participants who are not subscribers of this document with access to view the document; User interface control mechanisms (savings, changes) were added; Functions of statistics processing and report formation were modified, etc. server with its server IQS part, DBMS, catalogues server (users data, LDAP), Oracle Report and ClickOnce store were distributed to new high-performance servers in comparison with the ones used before, in the configuration providing stronger resilience and efficiency. Besides, transition to new technical characteristics of the remote access was carried out (systems were transferred from certain IP-addresses to host Developing the software for report formation Together with OTC Market IQS introduction, separate software was upgraded to provide the formation of reporting upon OTC transactions to the Committee of the State Control of Belarus and to the National Bank of Belarus. This new software was successfully introduced into operation. In addition, the transition to new formats of report submitting to the Securities Department at the Ministry of Finance was provided. Technology Updating Within the year 2010, the transfer of OTC market IQS system to new server equipment was completed. In particular, basic system elements such as Oracle Weblogic application

8 FUTURES MARKET In 2010, the total volume of the exchange futures market trading amounted to BYR 40.9 billion, or USD 13.6 million (BYR 32.0 billion, or USD 11.3 million in 2009, accordingly), having increased by 27.8 percent in ruble equivalent in relation to Projects for the exchange services development During the period under report, the main efforts for developing this exchange segment were directed at attracting potential participants to operate with financial instruments, increasing the attractiveness of the futures market for investors. Besides, due to introduced changes into the legislation regulating the order of futures market functioning in Belarus, new editions of the Rules of Futures Trading and specifications for financial instruments circulated in the futures market came into force.

9 SETTLEMENT AND CLEARING SYSTEM The amount of rendered by the BCSE clearing services in the currency, stock and futures markets totaled BYR trillion in Settlement and clearing system performance in 2010 BYR in billions Feature Currency Market Stock Market Futures Market Type of clearing centralized multilateral multilateral Daily average volume of deposited funds Daily average trading value Daily average volume of net liabilities Daily average volume of deposited funds to daily average volume of net liabilities Projects for the exchange services development Providing mechanisms of state loans record according to new circulation conditions Within the year 2010 the Stock Exchange had completed the updating of the Settlement and Clearing System soft-and hardware complex regarding introduction of mechanisms providing registration, clearing and settlements upon government pay-down securities, followed by updating mechanisms of lot formation in the trading securities system to conform with the Belarusian legislation, including: Interaction with the Republican Central Securities Depository while receiving and processing electronic messages on transfer of securities, automating procedures of verification of multiplicity of securities and pay-down of securities issues specified in the message, to the lot and to the issue activity specified in the directory of the trading system; Creating and submitting electronic messages to the Republican Central Securities Depository for unblocking securities not specified in the requirements of multiplicity of a lot and issue activity in the directory of the trading system to unblock securities; Control of securities multiplicity to the size of the lot at creating and submitting corresponding electronic messages to the Republican Central Securities Depository and depositories; Interaction with the trading system at receiving orders to unblock government securities and controlling securities multiplicity to the size of the lot; Formation of messages for a leader of trades and a trade participant for decision-making and updating in case the frequency rate to a lot fails to meet the requirements; Creating messages for users who failed to meet multiplicity requirements to the lot for decision-making on their further work, etc. Transition to new formats of electronic messages, expansion of the list of settlement procedures In the year under review, the settlement and clearing system of the Stock Exchange was adapted to transition to new formats of electronic messages of the Republican Central Securities Depository in the securities market. Therefore, the following additional administrative procedures were introduced, including: Automatic verification and disclosing of information on changes and additions into banks directory arriving from the National Bank; Automation of processing, verification and transfer of information on the reserve fund amount transferred by National Bank and banks to the trading system; Launching the procedure of informing the National Bank, other banks and depositories by sending electronic messages in case of force-majeur influencing the time for settlements; Implementing the procedure of unblocking securities based on the trade participant claim outside the trading procedures.

10 Introducing refund mechanism upon participants claim outside the trading procedures Updating the settlement complex serving the exchange currency market was connected with introduction of new functions of register formation of payment messages on return of overpaid money upon the trade participant's claim, and processing credit records while importing statements of transit accounts into calculation forms (possibility of import of one record, control over the transfer time into the transit account and document number while importing). These procedures essentially simplified administrative procedures of interaction between the BCSE and participants and other settlement elements of the system. Works on realization of the Development Concept for Settlement and Clearing Securities System of Belarus for During the previous year the Stock Exchange launched the realization of the Development Concept for Settlement and Clearing Securities System of Belarus for (Development Concept), approved by the decision No. 20/40 of the Ministry of Finance and the National Bank as on The main issue was to develop projects of the standard documents regulating the procedure of clearing activity in Belarus resulted in developing Regulations projects on clearing activity in Belarusian securities market, and Regulations on the Guarantee Fund. Besides, in 2010, there were analytical researches and elaboration of working schemes for gross settlement organization in the securities market and providing partially backed exchange transactions. DEPOSITORY ACTIVITY As of , the face-value of securities deposited for custody, totaled BYR billion, having increased by 19.8 percent in comparison with 2009, the number of securities totaled 8.5 million items, having reduced by 62.4 percent due to the pooling of securities issues. Operation structure of BCSE Depository as of Kind of operation Number of completed operations, it. Increase to 2009, % Administrative ,5 Accounting ,3 Informational ,3 Number of depositors ,4 Number of issuers in service 7 16,7 Projects for the exchange services development Restructuring tariffs and new services In the period under report, BCSE tariffs for rendered services were restructured depending on the kind and quantity of the conducted operations, and a lowering scale was introduced for depositors actively operating in the market. Besides, the BCSE Depository introduced a new kind of services for issuers providing them with consultations on release and registration of securities in Belarus Developing accounting operations Within 2010, the BCSE Depository soft-and hardware complex updating was completed and the following accounting operations were introduced: Managing several monetary accounts of depositors to record incomes upon securities of different issues and (or) nominated in different currency; Managing off-balance accounts to record securities of the served by the BCSE issuers whose owners record securities in other depositories. Transition to new formats of electronic messages of the depository system of the securities market in Belarus In 2010, the BCSE Depository software upgrading was completed and transition to new formats of electronic messages of the depository systems of the securities market in Belarus was carried out to use them while conducting depository operations.

11 INFORMATION ACTIVITY Information activity development Within the previous year, the BCSE exchanged information with different companies, such as "YrSpektr" LLC, Reuters, News Agencies "Media Markets", «Vladimir Grevtsov's Agency», «Ecopress», Cbonds, "Infobank", ISS "Bank", Internet portal «TUT.by», Belteleradiocompany, etc. In order to provide state authorities with information support, the Stock Exchange continued servicing special versions of the remote information terminals providing online exchange trading broadcast for the State Control Committee, the Ministry of Finance, the National Bank, the Securities Department at the Ministry of Finance, etc. There are seven customers connected to information terminals of the trading systems. Except terminals of the trading systems, the Stock Exchange provides their customers with information work station of the OTC market BEQAS IQS module. By the end of last year, ten participants had been connected to this system, including news agencies (MEDIA MARKET, FTN Monitor), the Securities Department at the Ministry of Finance and regional and Minsk headquarters of the Ministry of Finance. The total number of clients provided with the exchange information on a contract basis remained unchanged within Developing system of exchange indicators In order to develop exchange indicators, new Regulations on market indices for government securities and short-term bonds of the National Bank which provided the base for launching the total and gross revenue market indices. The following yield indicators were added for the secondary market for government securities and securities of the National Bank: gross yield, effective yield of interest bonds, effective yield of the market, etc. Besides, the calculation methodology of certain yield indicators was expanded, including: yield calculation upon interest bonds covering all before redemption period; Possibility of calculation of effective yield indicators upon interest bonds; Effective yield calculation of the market based on effective yield indicators of certain issues; Turnover indicator calculation of the market, covering «before redemption» period of certain issues; Possibility of calculating certain indicators on the base of actual number of days per year. In the period under report the project development of Regulations for indicators of the secondary market for corporate securities was completed providing calculation procedures for the following indicators: Price indicators of equity and bond market; Yield indicators of the bond market; Full group of liquidity indicators; Capitalization and duration indicators; Exchange bond market indices; Exchange equity market index. Conferences, seminars, trainings Among the most significant events was the organization of a special seminar for one of the largest engineering corporation of Belarus - Belarusian Automobile Factory. The presentation focused on the organized market as a source of additional financing and attraction of long-term investments, as well as on organization of liquid secondary equity market, on advantages and prospects of bonds issue, on practical aspects of working of issuers on exchange platform. In May 2010, the BCSE together with the Professional Association of Registrars, Transfer Agents and Depositories (PARTAD) and Media Groups "Securities Markets" hosted the VIII th professional conference Securities Market Infrastructure This conference was designed for professional participants of the market, issuers, investors, clearing and depository institutions. Besides, the BCSE participated in a number of Internet conferences devoted to securities market development in Belarus organized by Internet portal TUT.by. This conference focused on the exchange trades and settlements order, privatization and incorporation of state enterprises, Belarusian issuers potentials and providing their securities listing on trading floor, as well as

12 on general condition of Belarusian securities market and its development outlook. Traditionally, the Stock Exchange continued its cooperation with the State Educational Centre for Professional Development and Retraining of the personnel of the Ministry of Finance, the Belarusian State Economic University, the Academy of Public Administration under the aegis of the President of the Republic of Belarus, the Belarusian State University, the Minsk Financial and Economic College, etc. Development of information technologies In the period under review, a scale technological updating of the exchange information disclosure was launched. At the initial stage, the development of service level of information system of the stock exchange was completed in This system is based on Oracle WebLogic Server representing a combination of program services for the BCSE database access, Oracle WebLogic Server software, Oracle Coherence data caching and Oracle Identity and Access Management software. Being an enterprise system connection, this service level provides formation of the cumulative information from each sector served by the BCSE on the base of a common platform to enable further consolidated analysis of financial market data (by cross-sector). So that statistics is delivered automatically without having to prepare manual analysis to receive results in the shortest time possible. Besides, realization of service layer enables to increase the BCSE information privacy owing to the integration of safety mechanisms into a chosen platform and due to banning a direct access to databases from a web portal. The BCSE Internet systems upgrading in 2010 was a further development stage of the information structure of the Stock Exchange. Their launch is planned for INTERNATIONAL COOPERATION Association membership The BCSE maintained its membership in two foreign associations in 2010: the International Association of Stock Exchanges of the CIS countries (IAS CIS) and Federation of Euro-Asian Stock Exchanges (FEAS). Within this membership work, the BCSE took part in decision-making during council meetings, working and executive committee and task group meetings, and regularly published its data in information resources of these associations. The largest project under the aegis of the IAS CIS was the organization of cross-trading with securities between the Belarusian Currency and Stock Exchange and the Stock Exchange Moscow Interbank Stock Exchange. In particular, a detailed analysis was carried out to prepare proposals describing organizational, trading, technological, settlement and clearing aspects of realization of this project. These proposals are currently under consideration of the Russian side. A similar project is under development with the Kazakhstan Stock Exchange. The main activity plan of FEAS task forces for 2011 are: harmonization of FEAS Rules and Regulations with international standards (MifiD etc.); design training programs on Media and Blue Chips listing issues; marketing and data distribution issues; interaction between post-trading institutes, affiliate FEAS members, and dealer associations; development of Corporate Governance, etc. Within FEAS bilateral programs the BCSE hosted the training for representatives of the Baku Interbank Currency Exchange (BBVB), covering issues of organizing and functioning of Belarusian financial market, its organized segment (exchange currency and futures markets, trading, settlement, clearing and depository systems, information and analytical products, etc.). The training program included the visit of the largest industrial enterprises, banks and depository. In return, BCSE specialists visited the Baku Interbank Currency Exchange in November for a FEAS bilateral program. International cooperation development In accordance with the Memorandum of cooperation between the Belarusian Currency and Stock Exchange and the Warsaw Stock Exchange aimed at contributing to the development of the financial markets of two countries, possibilities of creation of special Internet sections providing mutual information disclosure on investment climate in both countries, features of exchange trade, and activity results were discussed in Besides interaction with the Warsaw Stock Exchange the BCSE cooperated with the National Depository for Securities of Poland concerning correspondent relations issues and the Polish Committee on the financial control (KNF) regarding consultations on

13 listing of Belarusian enterprises on European stock trading platforms. Moreover, several meetings with representatives Bank of New-York Mellon (USA), representatives of Belarus Europe Business Council (EU representation in Belarus), representatives of large investment companies Auerbach Grayson Company Inc (USA), Emerging Markets Management (USA), CIM investment management (USA), Terra Partners (Czech), and delegation from the Republic of Vietnam were organized within the previous year. The main issues of these meetings were functioning of republican securities market and financial market in general, investment activity in Belarus, the organization of work of non-residents in the exchange market of our country, etc.

14 ORGANIZATIONAL AND TECHNOLOGICAL DEVELOPMENT The IT complex of the BCSE was maintained during the previous year to provide its stable work and to facilitate technologies updating, to ensure the information control, and to enable the regulation of the continuity process and restoration of the soft-and hardware complex of the Stock Exchange in case of force majeure. Legal base development During the year under report, a number of local regulations were developed, approved and enacted in order to provide norms for regulating BCSE officials' actions on monitoring the BCSE soft-and hardware complex capacity, for emergency detecting and warning, examining and preventing softand hardware failures and recovery of the Stock Exchange systems. Besides, Regulations on information safety were developed and approved. They determine general strategy of providing the BCSE with complex information safety system, as well as requirements and main Approaches to their realization, structure of critical information resources and main principles for their protection. Software complex The main efforts for the software complex development were directed to realization of the following projects. Introducing new versions 9.11, 9.12, 9.13, 9.14 of ASU "Stock Exchange" trading system for securities. Besides, for further BCSE software complex improvement and reduction of technical risks, refactoring of the trading securities system architecture was completed within This upgrade implies considerable changes connected with a revolutionary new approach to the increase of the system resilience. This new architecture allows to reduce the probability of a crash leading to the whole system failure due to incorrect work of a separate component (hardware operation in a fault tolerance mode due to distribution of resources at a cluster level). Besides, it provides the best scaling of the ASU "Stock Exchange" to create special conditions for further updating in order to increase its efficiency. Version has been implemented. As mentioned above, for the development purposes of rendered by the BCSE services in the securities market, the software for "GTSB/STB Indices" and ASU "Listing" was completed and introduced into operation. Introducing BEQAS IQS "OTC Market" module for professional participants of the securities market in February Updating and introducing the system of electronic document (SED) within BEQAS IQS "OTC Market" module, trading system for foreign currency, as well as expansion of system functionality regarding servicing the organized stock market. Introducing trading and settlement module ASET "Trading in foreign currencies", version Introducing three versions ( , , ) of the "Settlement and Clearing System" soft-and hardware complex. Introducing Oracle WebLogic based service level of the BCSE information system, server resources allocation and software enhancement on the Stock Exchange platform, as well as developing new security system to enable safe interaction between the BCSE information system service level and other Internet sites. Further to this task, the IS Stock Market" software was developed and introduced for corporate use to provide news agencies with the access to the interface part of the published information on the base of services. Hardware complex For network update purposes, active network equipment was renewed; routers of a corporate data transmission network core were updated in 2010 to enable the following: To increase the connection speed between main and backup computer centers from 1 GB to 20 GB, and to increase the speed of data exchange, accordingly; To reduce network core loading from 70 percent to percent, and to increase the processing speed of network queries, accordingly; To connect standby network routers through various communication channels (backup).

15 In order to solve problems of controlling and providing continuity of the corporate network, a monitoring system of the corporate data transmission network was introduced in Upon expiration of the system operation in a statistics compilation mode, proper measures to various events were developed, the equipment was adjusted and the system was introduced into service. Besides, the BCSE technical base improving in 2010 was connected with purchase and installation of a multilevel data backup and servers configuration system to facilitate automatic saving, safe and reliable storing of backup copies of operational system databases for long time, and of users data, etc. In the period under report, new servers were purchased and installed to provide the support of new BEQAS IQS OTC Market module functioning. Special servers were dedicated and adjusted for layout of the BCSE information system service level as well as separate servers to locate new sites of the BCSE. Being a connection core to an institutional industrial automatic telephone station, Cisco AS5350 router was certified in the Certification Center "Hyprosvyaz in accordance with Belarusian legislation in order to transfer communication facilities from analogue to digital technologies. Upon completion of this procedure, the server was adjusted and tested, and Specifications were received to enable the connection to city telephone systems. Other events were aimed at providing continuity of the technical complex, and maintaining uninterruptible power supply, diesel engine-generator, lifesupport systems and other IT platform components of the Stock Exchange.

16 PROJECTS FOR 2011 The main works on the development of the Belarus Currency and Stock Exchange in 2011 will be focused on achievement of key objective of the BCSE activity to improve the quality of servicing and effective development of the organized financial market in Belarus. Soft- and hardware solutions The BCSE IТ-infrastructure development scheduled for 2011 will be focused on further increase of its reliability and fault tolerance, decrease in technical failures risks in the exchange markets, settlement, clearing and information systems, providing conditions for dynamical development of all key directions of the BCSE activity. This goal can be achieved by solving the following tasks: Completing a complex network infrastructure upgrade resulting in considerable extend of its functionality, in new services and processes, in essential improving of network parameters such as communication speed, number of possible connections, security, fault tolerance, scalability and other parameters; virtualizing servers on the base of VMware vsphere software in order to reduce number of servers due to creation sets of virtual servers within one «iron server», to raise the efficiency of physical servers, to expand automation possibilities on deployment and control of the system, to simplify infrastructure administration, to raise fault tolerance, to lower forced and planned system downtimes, and to prevent data loss; Updating of the BCSE system of electronic document aimed at increasing its reliability and safety, expansion of functionality, increasing number of feasible formats for SED processing, creating the central data warehouse; Supporting and developing electronic trading, settlement and clearing systems, currency, stock and futures markets, Internet resources, IQS OTC Market, processing systems for trading information (service level of the BCSE information system, etc.), providing servicing of the systems to support book keeping of the Stock Exchange, administrative decisions, and anti-virus software, etc.; Designing information systems required for developing new range of services and new activity directions of the Stock Exchange. Stock Market In 2011, the Stock Exchange will continue developing new sectors, expanding range of acceptable operations, introducing new financial instruments in the stock market. The near-term outlook for 2011 is the launch of circulation of bonds of the National Bank (NB RB) regulated by rules for nongovernment securities sector (expanding range of trading modes acceptable for NB RB bonds including forward transactions, free pricing REPO operations, etc.), the possibility of GS purchase and sale transactions for the benefit of clients in accordance with Portfolio Management Agreement, including bank funds management, etc. Analyzing the corporate securities market will be intensified by the Stock Exchange to provide introduction of international standards. Practical solution of this issue will depend on developing strategies and automation process of calculation of new range of corporate securities market indicators characterizing its liquidity, prices and yield dynamics, and general development trends (equity and bond market indices, yield and duration indicators of debt market, turnover and price spreads indicators). At the same time, the following events will be aimed at upgrading the trading system: New services will be created to improve and simplify work with databases and the registration procedure for clients; The unique exchange securities coding (ticker) will be introduced, and the trading information on concrete financial instrument (pre-and post-trading information, etc.) will be broadcasting and published with the usage of ticker identifier; A forward transactions mode (direct operations between participants) was improved to provide trade participants with comfortable conditions for operating in this mode, notably placing securities and block trading; The range of published statistics upon foreign-currency-denominated bonds in the trading system is extended; their correct calculation and appropriate performance are provided;

17 The calculation mechanism of market price of securities is modified; Updating of positions, cancellation of trades and transactions is automated in case of emergency. The gross settlements sector is to be developed in the stock market in A complex solution of this problem is under consideration. It implies both trade execution on a gross settlement base and change of settlement conditions from clearing to the gross on any concluded transaction on clearing terms but not loaded into the settlement and clearing system. The second mechanism is based on orderinputs to the trading system for change of settlement conditions (transfer of the transaction into the gross) by both counterparts. Currency Market In the coming year the Stock Exchange efforts in the currency market will be concentrated mainly on providing conditions for the National Bank to run an effective currency policy aimed at stabilizing national currency. Local tasks will be simultaneously solved: increase of automation degree of trading operations, providing automated receiving of indicative bids within the trading system, its functional development, new services, optimization of databases, etc. One of the new projects on currency market instruments expansion is the issue on organizing SWAP market, launching double auction and negotiated deals modes. Futures Market Improving the futures market will be traditionally focused on analyzing and estimating the possibility of further development of the range of financial instruments circulating in the futures market, as well as running special events directed on raising awareness among banks, brokerdealer companies and potential investors on the futures market. One of the local tasks is further improvement of the fund control system, development of theoretical aspects and new approaches to the risk control and settlement system in the futures market. Clearing and depository activity Working out the Development Concept of the Settlement and Clearing System for and its approving by the Ministry of Finance and the National Bank became an essentially important event for the Stock Exchange in This document stipulates the creation of a sound settlement and clearing center on the BCSE base with all inherent functions required by present-day conditions, including CCP function. Solving this issue is the key target of the BCSE development plans for 2011 that implies standards developing; financial resources accumulating; monitoring system creating to observe the financial conditions of clearing participants; designing new technologies and risk-free systems; creating guarantee funds. The solution of current problems of the settlement and clearing mechanisms development implies: The organization of automated exchange and verification of information between the Republican Central Securities Depository and the BCSE Depository on the securities balance on trading sub-accounts of depositories correspondent accounts; Software adaptation the BCSE Depository to interaction with the BCSE system of electronic document (the BCSE SED) and providing Depository customers with the possibility to sign and transfer depository settlement documents via the BCSE SED; Updating settlement and clearing complex aimed at introducing new instruments and expanding list of operations in the stock, currency and futures markets, as well as expanding the list of clients. Information activity Key actions aimed at developing information technologies in 2011 will be connected with completion of the first step to transfer the BCSE basic information products into a uniform technological data processing platform (service level of the BCSE information system) resulting in publication of two new Internet sites in the network: the IS «Stock Market» and the official site of the BCSE. The updated sites will provide all users with fast and convenient search for trading results at the Stock Exchange, general data about securities and their issuers, data on the Stock Exchange activity, trade participants, etc.

18 In 2011 information partners of the Stock Exchange will be provided with a new technology of receiving data on trading results on the base of Oracle WebLogic Server and the developed software Service level of the BCSE information system. Data speed, processing and representation simplicity are three basic advantages of these new technologies. Besides, the following events are planned for information expansion purposes: The further functional development of information systems; Increase of disclosing level of the total and analytical information, increasing the number of customers and clients of the Stock Exchange; Developing trading data distribution on a contract basis.

19 FINANCIAL PERFORMANCE Yield structure by activity kinds in 2010 Service, in less detail Share in the total yield, % Organization of trading in the currency and futures markets and clearing services provided in this segment 71,24 % Organization of trading in the stock market and clearing services provided in this segment 27,10 % Information, analytical and depository services 0,93 % Services for providing the System of Electronic Document 0,73 % Account statement of the Belarusian Currency and Stock Exchange as of December 31, 2010 ASSETS BYR in millions USD in thousands 1 Tangible fixed assets, including: ,33 Fixed assets ,67 Intangible assets ,67 Earning investments in tangibles ,33 Investments in non-current assets ,66 Current assets, TOTAL, including: ,00 Resources and expenses ,00 Bought valuables tax 1 0,33 Accounts receivable ,67 Funds ,67 Funds investments ,67 Other current assets 2 0,66 Balance-sheet ,33 LIABILITIES BYR in millions USD in thousands Equity and reserves, TOTAL, including: ,00 Share capital ,67 Reserve fund ,67 Additional fund ,67 Retained income ,33 Prepaid income 2 0,66 Short-term liabilities, TOTAL, including: ,33 Payables ,33 Balance-sheet ,33 1 Financial indicators of the BCSE s activity were recalculated in dollar equivalent upon an official rate established by the National Bank as of January 1, 2011.

20 Profit and Loss Account for 2010 BYR in millions USD in thousands I. Incomes and expenses according to kinds of activity Income from sales (received after vat and other taxes) ,33 Service and commodity cost ,00 Sales income ,33 II. Balance of operational income and expenses ,00 III. Balance of non-sale income and expenses ,67 IV. Total profit for the accounting period ,66 V. Profit tax and other compulsory payments ,33 VI. Net profit ,33 20

21 АUDITOR S REPORT АUDITOR S REPORT ON FINANCIAL STATEMENT February 7, 2011 Minsk To the Chairman of the Board of the JSC Belarusian Currency and Stock Exchange Mr. Pavel Tsekhanovich Audited entity: Open Joint-Stock Company Belarusian Currency and Stock Exchange (Belarusian Currency and Stock Exchange) located 48a, Surganova str., room 35a , Minsk, Belarus; State registration information: registered by Decision No.698 dated June 20, 2000 of the Minsk City Executive Committee, state register No issued on June 27, Auditor company: Audit Expert Legal address: , Belarus, Minsk, Pobediteley ave., The certificate of state registration No is issued by the Minsk City Executive Committee on July 9, 2002 No.994; state register We have audited the financial statements of the Belarusian Currency and Stock Exchange from January 1, 2010 till December 31, The financial statements consist of: balance sheet as of January 1, 2011; profit and losses report, report on capital change, funds flow report, balance sheet annexes for the period from January 1, 2010 to December 31, 2010; explanatory notes. These financial statements are the responsibility of the Belarusian Currency and Stock Exchange s Management in accordance with the Belarusian legislation on accounting reporting bookkeeping. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Our responsibility is to express an opinion on certainty in all essential relations of these financial statements based on our audit and on adequacy of BCSE s financial (economic) activities to Belarusian legislation. 21

22 The audit company SILAR controlled the adequacy of the financial and economical activities of the Belarusian Currency and Stock Exchange to the Belarusian legislation for the period from January 1, 2009 till December 31, Their audit report dated February 15, 2010 contains only positive opinion on certainty of the financial statements for 2009 and adequacy in all essential relations of BCSE s financial and economic activities to Belarusian legislation. We conducted audit pursuant to the Republic Auditor s Activity Rules. These auditing standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the accounting (financial) report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounting (financial) report. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the BCSE s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the BCSE s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presentation of the accounting (financial) report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our audit opinion. In our opinion, the financial statements of the Belarusian Currency and Stock Exchange for 2010 are fairly presented in accordance with accounting bookkeeping principles in Belarus to reflect in all essential relations the financial state of the Belarusian Currency and Stock Exchange as of January 1, 2011 and financial outcomes of its activity for However, the financial (economic) operations of the Belarusian Currency and Stock Exchange were performed in accordance with the legislation. 22

23 STOCK EXCHANGE RESULTS IN FIGURES MARKET SECTOR MEMBERS As of Members 23 Currency Market Sector Stock Market Sector Futures Market Sector Absolutbank, CJSC Agrocapital, CJSC Aktsiya, LLC Aktsiya-Service, LLC Alfa-Bank, CJSC Atlant-Invest GRCSD, LLC Aygenis, CJSC Bank BBMB, CJSC Bank Moscow-Minsk, JSC Bank VTB (Belarus), CJSC Belagroprombank, JSC Belarusbank, JSC Belgazprombank, JSC Belinvestbank, JSC BelMezhKomInvest, JSC Belrosbank, CJSC BelSwissBank, CJSC Belvnesheconombank, JSC BG Capital, FLLC BNB-Bank, JSC BPS-Bank, JSC Brokerage company Analytic, LLC BrokerInvest, PC BROSTOK, CJSC BTA-Bank, JSC BММ-Trust, LLC Capital Active, CJSC Credexbank, CJSC Delta-Bank, CJSC Denim Trading, UE DERZHAVAINVEST, JSC Diamondinvest, PC Egal-Invest, LLC ESPAS, UE Eurobank, CJSC Finansovy Impuls, PC Fondekspert, LLC Fondovy Aliance, LLC Fransabank, JSC

24 General Investment System, CJSC Gomel Regional Depository Center, CJSC GRB Research & Trading, FLLC HCBank, JSC Honorbank, CJSC International Reserve Bank, JSC Interregional Depository and Clearing Center, SE Intertrust Group, JSC Investment Company BelASKO-Invest, CJSC Kaskad-93-Invest, LLC Leader-Invest, LLC Leovest, JSC MTBank, CJSC MTG, CJSC National Bank of Belarus Paritetbank, JSC Priorbank, JSC ProfRateInvest, LLC Promreestr, LLC Reestr IC, LLC RRB-Bank, CJSC Sombelbank, CJSC Sovmedia, UE State Property Fund Technobank, JSC TK Bank, CJSC Trustbank, CJSC Trust-Zapad, CJSC Western Stock Bureau, CJSC Zepter Bank, CLSC The number of registered in Belarus participants empowered to carry out operations with exchange-traded assets to the number of participants who are the members of the Stock Exchange sections, as of Rate Currency Market Sector Stock Market Sector Futures Market Sector Unit weight 100 % 90,1 % 32,0% Five leading Section members by trade turnover in 2010 Rating 1 National Bank of Belarus 2 Belarusbank, JSC 3 Belagroprombank, JSC 4 Priorbank, JSC 5 Bank Moscow-Minsk, JSC Participant 24

25 TOTAL EXCHANGE MARKET ACTIVITIES Belarusian exchange market dynamics for 5 years Average annual increase by market segments, Trading value, BYR in billions Average annual increase Market segment in % BYR in billions Stock Market 7 023, , , , ,1 36, ,1 Forex market , , , , ,0 31, ,8 Futures Market 3,0 8,2 16,3 32,0 40,9 92,2 9,5 Total , , , , ,0 32, ,4 Belarusian exchange trading value and GDP dynamics for 5 years 25 BYR in billions Trading value GDP Belarusian exchange trading value and GDP dynamics in 2010

26 Month Trade volume, BYR in billions GDP, BYR in billions January 6 401, ,1 February 5 495, ,2 March 6 665, ,5 April 7 843, ,1 May 5 264, ,0 June 6 143, ,5 July 6 669, ,8 August 6 213, ,5 September 5 862, ,2 October 7 023, ,4 November 8 822, ,2 December , ,1 STOCK MARKET Ten leading Stock Market participants in 2010 Rating Participant by turnover by number of transactions 1 Belarusbank, JSC BPS-Bank, JSC 2 Bank Moscow-Minsk, JSC Belvnesheconombank, JSC 3 Belagroprombank, JSC Bank Moscow-Minsk, JSC 4 MTBank, CJSC MTBank, CJSC 5 BPS-Bank, JSC Belinvestbank, JSC 6 Belgazprombank, JSC Belarusbank, JSC 7 Belinvestbank, JSC Belagroprombank, JSC 8 Belvnesheconombank, JSC Belgazprombank, JSC 9 Belrosbank, CJSC Priorbank, JSC 10 Bank VTB (Belarus), CJSC Aktsiya, LLC 26

27 Exchange Stock Market Structure Exchange Market Sector Government bonds and National Bank bonds market, including: Primary government securities market (auctions of Ministry of Finance) Secondary government securities market and National Bank securities market, including: Trade volume, BYR in billions Increase in % BYR in billions , ,05-54, , , ,05-54, ,11 Trading in government securities , ,22-54, ,94 REPO auctions of the National Bank , Trading in National Bank securities - 84, Equity market 123,57 278, ,6 +155,26 Non-government bond market, including: 3 603, ,27 +82, ,6 Mortgage bonds, including: 565,57 368,12-34,9-197,45 Primary market Secondary market 565,57 368,12-34,9-197,45 Investment bonds, including: 1 547, ,78 +68, ,81 Primary market 167,63 211,89 +26,4 +44,26 Secondary market 1 380, ,89 +73, ,55 Exchange-traded bonds 1 480, ,33 +8,3 +123,15 Primary market 670, ,96 +49,5 +331,65 Secondary market 809,87 601,37-25,7-208,50 Municipal bonds 9, , , ,09 Primary market Secondary market 9, , , ,09 Total , ,14-42, ,26 GS/STB NB RB Market Structure of GS circulated at the BCSE as of Securities name Number of issues Volume in circulation (by Number of par value), BYR in billions securities Interest yield GLTB , Discount yield GLTB 1 60, Ten leading GS/STB NB RB Market participants in 2010 Rating Participant By turnover By number of transactions 1 Belarusbank, JSC Bank Moscow-Minsk, JSC 2 Bank Moscow-Minsk, JSC MTBank, CJSC 3 Belagroprombank, JSC BPS-Bank, JSC 4 MTBank, CJSC Belarusbank, JSC 5 BPS-Bank, JSC Belagroprombank, JSC 6 Belrosbank, CJSC Belinvestbank, JSC 7 Belvnesheconombank, JSC Priorbank, JSC 8 Belinvestbank, JSC Belgazprombank, JSC 9 Bank VTB (Belarus), CJSC Belrosbank, CJSC 10 Belgazprombank, JSC Belvnesheconombank, JSC

28 Investment structure in GS/STB NB RB market in 2010 Type of transaction Share in turnover, % Transactions concluded by participants on their own behalf and at their own expense 69,65 Transactions concluded by participants on their own behalf and at the expense of their clients, including: 30,35 residents 90,94 non-residents 9,06 Trading value of GS/STB NB RB market in , BYR in billions Month January 1 429, ,2 February 1 872, ,6 March 2 687, ,8 April 3 870, ,6 May 3 905, ,3 June 4 516, ,1 July 3 618, ,7 August 3 712, ,0 September 4 142, ,1 October 3 606, ,6 November 2 121, ,8 December 2 996, ,1 Number of transactions in GS/STB NB RB market in

29 Month January February March April May June July August September October November December GS/STB NB RB trading value in (by trading modes) Trading mode PERO auctions Before redemption transactions PERO auctions Trading value, BYR in billions Number of transactions, it. Number of securities, in millions Increase, Increase, Increase, % % % , , ,0 138, , , ,0-62, ,7 105,8 34,1-67, , ,1-2, ,4 136,7 128,2-6,2 Total , ,1-54, ,4 380,9 162,3-57,4 Yield of GS/STB NB RB Before redemption transactions in

30 Yield of GS/STB NB RB REPO transactions in Volume of GS/STB NB RB REPO transactions in , BYR in billions Yield of GS/STB NB RB REPO transactions in REPO term Yield, % per year, 2009 Yield, % per year, days 18,74 12, days 18,33 12, days 18,90 12, days 18,47 11, days 16,96 11, days 17,17 12, days 17,27 13,12 > 180 days 17,38-30

31 GS/STB NB RB Market Indices Price Index GS(STB)I GS(STB) ITR market aggregate income Index GS(STB) G market gross income Index

32 Non-government securities market Ten leading trade participants in non-government securities market in 2010 Rating Participant By turnover By number of transactions 1 Belarusbank, JSC BPS-Bank, JSC 2 Belgazprombank, JSC Belvnesheconombank, JSC 3 Belagroprombank, JSC MTBank, CJSC 4 National Bank of Belarus Belinvestbank, JSC 5 MTBank, CJSC Aktsiya, LLC 6 Belinvestbank, JSC Leader-Invest, LLC 7 Bank VTB (Belarus), CJSC Aktsiya-Service, LLC 8 Belvnesheconombank, JSC Belarusbank, JSC 9 Paritetbank, JSC Brokerage company Analytic, LLC 10 Priorbank, JSC General Investment System, CJSC Investment structure in non-government securities market in 2010 Type of transaction Share in total turnover in Br, per cent Transactions concluded by participants on their own behalf and at their own 75,4 expense Transactions concluded by participants on their own behalf and at the expense of 24,6 their clients, including: Legal entities, including: 96,1 residents 89,9 non-residents 10,1 individuals, including: 3,9 residents 96,3 non-residents 3,7 Trading values in non-government securities market in , BYR in billions 32

33 Number of transactions in non-government securities market in Trading value of non-government securities in (by trading modes) Trading mode Primary Placement Trading value, BYR in billions Number of transactions Number of securities, in millions Increase, Increase, Increase, % % % 837, ,8 +44, ,1 2,5 4,2 +68,5 Call Auction 10,9 0,9-91, ,5 0,7 0,01-98,0 Continuous double auction (Order-Driven Market) Forward transactions (Quote-Driven Market) REPO Transactions 454, ,5 +442, ,1 37,1 693, , , ,2-0, ,7 34,4 565, ,7 19,3 776, , ,4 0,2 3, ,9 Simple Auction 8,1 7,6-6, ,5 0,05 0,02-69,5 Total 3 727, ,1 +83, ,0 75, , ,3 Equity Market Listing Structure as of Admission Level Number of Issuers Number of issues Quotation List A of the First Level 1 2 Quotation List A of the Second Level Quotation List B Unlisted Securities List of Issuers in higher quotation lists as of No. 1 Belarusbank, JSC Issuer Quotation List A of the First Level Quotation List A of the Second Level 33

34 No. Issuer 1 Belzoovetsnabprom JSC 2 Belmagistralautotrans JSC 3 Belarusian wallpaper, JSC 4 Belremstroysviaz, JSC 5 Belsantehmontazh-2, JSC 6 BelSvyasStroy, JSC 7 Belteploizolation, JSC 8 BELFA Zhlobin, JSC 9 Borisov Repair Factory, JSC 10 Lenta, JSC 11 Minsk furniture, JSC 12 MNIPI (Medical Technique and Communications Facilities), JSC 13 NerudProm, JSC 14 Pinsk Artificial Leather Factory, JSC 15 RemSpecStroy, JSC 16 Svetlogorsk Pulp and Board Mill, JSC 17 Svitanok Zhodino city, JSC 18 Specialized RSU No.3, JSC 19 Construction Trust No.3 named after October Revolution, JSC 20 Sukno, JSC 21 Trust Belsantechmontage No.1, JSC Quotation List B 1 AutoTransStroy, JSC 2 Bank Processing Center, JSC 3 Baranovichi Bread Products Industrial Complex, JSC 4 Baranovichi Dairy Factory, JSC 5 Belarusian Mechanization Management, JSC 6 BelEnergoSanTechMontazh, JSC 7 Beresa Feed-Mill Factory, JSC 8 BobruiskStockinet, JSC 9 Borisovdrev, JSC 10 Brest VTI, JSC 11 Brest Electromechanical Factory, JSC 12 Paper-Mill Spartak, JSC 13 Vitebskdrev, JSC 14 GIAP, JSC 15 GMZ, JSC 16 GomelPromBurVod, JSC 17 DRTZ, JSC 18 Zhlobin Furniture, JSC 19 Zhodino Research Mechanical Works Remiz, JSC 20 Mountain Wax Factory, JSC 21 Keramika, JSC 22 Kletsk Feed-Mill Factory, JSC 23 Catering and Trade Complex BorisovForest, JSC 24 Lesohimik, JSC 25 Liftservice, JSC 26 Lyahovichi Flax-Scutching Mill, OJSC 27 Minsk Furniture Design, JSC 34

35 No. Issuer 28 Minskselstroy, JSC 29 Minsktorgautotrans, JSC 30 Mihanovichi enterprise for providing agriculture complex, JSC 31 MogilevHleboProduct, JSC 32 Mogoteks, JSC 33 MolodechnoForest, JSC 34 Novogrudok Constructing-and-Mounting Department, JSC 35 Pinsk Experimental-Mechanical Works, JSC 36 Pinskelectromontazh, JSC 37 Svetlogorsk Planning and Design Technological Office, JSC 38 MMC-16-Agro, JSC 39 Polesje, JSC 40 Polesjeagrokomplekt, JSC 41 PolotskForest, JSC 42 Pukhovichi Board Mill, JSC 43 Radiotechnique, JSC 44 Slutsk Furniture Factory, JSC 45 Slutsk Bread Products Industrial Complex, JSC 46 StroyComplex, JSC 47 Fleet of Taxis, JSC 48 Trust No.16, JSC Novopolotsk Ten leading trade participants in the equity market in 2010 Rating Participant By turnover By number of transactions 1 Bank VTB (Belarus), CJSC BPS-Bank, JSC 2 Brostok, CJSC Belvnesheconombank, JSC 3 BG Capital, FLLC Aktsiya, LLC 4 Brokerage company Analytic, LLC Leader-Invest, LLC 5 BPS-Bank, JSC Aktsiya-Service, LLC 6 Belvnesheconombank, JSC Brokerage company Analytic, LLC 7 Belgazprombank, JSC General Investment System, CJSC 8 Western Stock Bureau, CJSC Western Stock Bureau, CJSC 9 Fransabank, JSC Leovest, JSC 10 BММ-Trust, LLC Sovmedia, UE Investment structure in the equity market in 2010 Type of transaction Share in turnover, % Transactions concluded by participants on their own behalf and at their own expense 0,5 Transactions concluded by participants on their own behalf and at the expense of their clients, including: 99,5 individuals, including: 23,7 residents 96,3 non-residents 3,7 Legal entities, including: 76,3 residents 38,8 non-residents 61,2 Trading value in the equity market in , BYR in billions 35

36 Month January 16,7 2,9 February 3,6 4,0 March 21,9 30,7 April 2,2 8,0 May 5,2 11,5 June 5,7 24,7 July 11,8 82,9 August 14,3 8,8 September 16,2 5,1 October 10,4 31,8 November 9,6 33,0 December 6,0 35,4 Number of transactions in the equity market in Month January February March April May June July August September October November December

37 Trading value in the equity market in (by trading modes) Trading value, BYR in billions Number of transactions, it. Number of securities, in millions Trading mode Increase, Increase, Increase, % % % Call Auction 10,9 0,9-91, ,5 0,7 0,01-98,0 Continuous double auction (Order-Driven 33,4 91,5 +174, ,0 34,4 687, ,3 Market) Forward transactions (Quote-Driven 69,1 178,8 +158, ,2 32,1 563, ,0 Market) REPO Transactions 2,1 0,0-100, ,0 0, ,0 Simple Auction 8,1 7,6-6, ,5 0,05 0,02-69,5 Total 123,6 278,8 +125, ,7 67, , ,5 Equity market trading totals in Issuer 37 Number of transactions Transaction volume, it. Transaction volume, BYR in billions AbrasiveChemSnab, JSC ,02 Motor Depot, JSC ,27 AutoPark No.4, JSC ,50 AutoTaxoService Minsk, JSC ,49 AutoTorgService, JSC ,75 AgroPromEnergo, JSC ,83 AgroChemServices, JSC ,82 Amkodor, JSC ,84 Andarak, JSC ,52 Belarusbank ,95 ATEP-5, JSC ,43 Grocery "Mogilev", JSC ,55 Baranovichi Dairy Factory, JSC ,59 Belagroprombank, JSC ,74 BelBud, JSC ,23 BelVANS, JSC ,06 Belzavodstroy CM, JSC ,79 Belinvestbank, JSC ,19 Belarusian Currency and Stock Exchange, JSC 4 4 0,05 Belarusian wallpaper, JSC ,29 Belarusian People`s Insurance Pension Fund ,48 Belsantehmontazh-2, JSC ,12 BelSchetTekhnika, JSC ,88 Beltruboprovodstroy, JSC ,15 Belhoztorg-1М, JSC ,54 Beresa Engine Repair Plant, JSC ,56 Beresa Cheese-Making Plant, JSC ,73 BiarTrans Minsk district, JSC ,18 BNB-Bank, JSC ,14 Borisov Car Repair Factory, JSC ,20 Borki Starch Factory, JSC ,99 BPS-Bank, JSC ,73

38 Issuer 38 Number of transactions Transaction volume, it. Transaction volume, BYR in billions BrestGasoApparat SP, JSC ,00 Brestcelmash, JSC ,82 Brest-Service, JSC ,36 Brest Mobile Mechanized Column No.1, JSC ,02 Brest Household Chemicals Plant, JSC ,10 Brest Meat-packing Plant, JSC 1 5 0,15 Brest Central Department Store, JSC ,70 Bresttorgreklama, JSC ,70 Brest-Yubileiny, JSC ,78 BRMZ, JSC ,63 Bug-Service, JSC ,44 Veras, JSC ,42 Westauto, JSC ,78 VodStroyAutoTrans, JSC ,51 Garant GOTZ, JSC ,48 GomelAgroKomplekt, JSC ,60 GomelDalAutoTrans, JSC ,00 GomelZhilProject, JSC ,91 GomelCable, JSC ,32 Gomel Furniture Factory Progress, JSC ,50 Gormolzavod N2, JSC ,79 Hotel Planeta, JSC ,50 Grand Fashion House, JSC ,70 Grodno Building Materials Complex, JSC ,80 GrodnoRemStroy PSF, JSC ,50 GUM, JSC ,07 Dzerzhinsk Engine Repair Plant, JSC ,38 Road Building Trust No.3, JSC ,54 Druzhba Trade, JSC ,12 Dyatlovo Cheese-Making Plant, JSC ,25 Zabudova-Stroy, JSC ,59 Factory Belplast, JSC ,79 Industrialization Banner, JSC ,72 Zubr, JSTC ,33 Keramin, JSC ,40 Classics of Fashion Industry Vitebsk JSC ,92 Kletskaya Krynachka, JSC ,18 Kobrin Creamery, JSC ,62 Kommunarka, JSC ,80 Companion, JSC ,20 Krichev Concrete Products Plant, JSC ,45 Kupalinka Soligorsk, JSC ,08 Varnish-and-Paint Lida, JSC ,29 Leninskoe-2005, JSC ,55 LidaSelMash, JSC ,37 Lida Shoe Factory, JSC 1 9 0,00 Lida Beer, JSC ,47 Lyahovichi Dairy Factory, JSC ,54 Store Zhuravinka, JSC ,78 Magol, JSC ,86 Malva, jsc ,00 MAPID, JSC ,78

39 Issuer 39 Number of transactions Transaction volume, it. Transaction volume, BYR in billions Mastra, JSC ,06 Mercury and K, JSC ,24 MinskVodStroy, JSC ,93 Minsk Reinforced Concrete, JSC ,60 Minsk Heating Equipment Plant, JSC ,29 Minsk Paintwork Factory, JSC ,42 MinskContract, JSC ,52 MinskPromStroy, JSC ,74 MinskEnergoStroy, JSC ,63 MogilevPromBurVod, JSC ,18 Mogilev SPMK No.109, JSC ,29 MozyrTechService, JSC ,28 Montazhlegmash, CJSC ,50 Moskva, JSC ,72 MOTOVELO, JSC ,27 NIKA, JSC ,58 Novoelnya Regional Production and Technical Organization for Agricultural Support Services, JSC ,01 Footware, JSC ,63 Padzeya, JSC ,29 Paritetbank, JSC ,34 Mobile Mechanized Column -69, JSC ,60 Brewery Olivariya, JSC ,18 Pinsk Experimental-Mechanical Works, JSC ,96 PinskRayAgroService, JSC ,09 Perfumery and Cosmetic Factory "Modum - our cosmetics", JSC ,05 Polesjezhilstroy, JSC ,01 Polesjestroyproekt, JSC ,72 Polygraphic Complex named after Y.Kolas, JSC ,59 PostTorg, JSC ,21 Prema, JSC ,32 Pridneprovje, JSC ,26 Priorbank, JSC ,73 Progress, JSC ,84 Food Service Grodno city, JSC ,08 ProdService, JSC ,98 ProdTovary, JSC ,35 Products Pinsk city, JSC ,01 PromStroyImport, JSC ,22 PromTovary, JSC ,81 PromTovary- Pinsk, JSC ,35 PromElectroMontazh, JSC ,89 Pukhovichi AgroPromEnergo, JSC ,30 RubberTechnique, JSC ,09 Restaurant Arbat, JSC ,20 Rodnye Istoki, JSC ,15 Sandal, JSC ,41 Santechmontazh, JSC ,42 Svitanak, JSC ,03 Slavneft-Agro, JSC ,00 Slepyanka, JSC ,19 SMT No.32 Volkovysskoe, JSC ,80

40 Issuer Number of transactions Transaction volume, it. Transaction volume, BYR in billions SoligorskVodStroy, JSC ,56 Soligorsk Manufacturing Equipment Factory, JSC ,88 Cooperation, JSC ,00 SoyuzPromMontazh, JSC ,48 SoyuzPromTechMontazh, JSC ,85 SMMC-81, JSC ,09 SpecAutoTechnique Bobruysk, JSC ,54 Starobin Working Supply Enterprise, JSC ,96 Old Department Store, JSC ,27 STO KUZOVOV, JSC ,63 StroyDetali, JSC ,42 Stropos, JSC ,82 Tatyana, JSC ,13 Teplitsmontazh, JSC ,00 Technobank, JSC ,32 Trade Center Uruchje, JSC ,86 UkrBelStroySnab, JSC ,62 Department Store Oktyabrskiy, JSC ,62 Self-Service Store Korzhenevsky, JSC ,85 Self-Service Store Severny, JSC ,07 Self-Service Store Svisloch-94, JSC ,38 Self-Service Store Centralnyi, JSC ,00 Factory of Individual Fabrication and Clothes Repair, JSC ,39 Firm Elma, JSC ,47 Fransabank, JSC ,65 Good Spirit, JSC 1 8 0,07 Center, JSCT ,55 Centralny, CJSC ,27 CentroStroyOffice, JSC ,68 CentreEnergoMontazh, JSC ,61 Ekomol, JSC ,88 EnkoStroy, JSC ,82 Total ,23 Unit weight of traded equity issues as of ,26% допущено выпусков Issues admitted Transactions conducted совершались сделки Unit weight of traded Issuers of equities as of ,27% допущено Issuers эмитентов admitted Transactions conducted совершались сделки 40

41 Non-Government Debt Market Listing Structure by non-government bonds types as of Parameter Number of Issuers Number of Issues Bond type Quotation List А Quotation List А of Unlisted List B of the First Level the Second Level Securities Mortgage Investment, including: banks other companies Exchange-traded, including: banks other companies Municipal Mortgage Investment, including: banks other companies Exchange-traded, including: banks other companies Municipal Ten leaders in non-government bonds market in 2010 Rating Participant by turnover by number of transactions 1 Belarusbank, JSC MTBank, CJSC 2 Belgazprombank, JSC Belinvestbank, JSC 3 Belagroprombank, JSC Belarusbank, JSC 4 National Bank of Belarus Paritetbank, JSC 5 MTBank, CJSC Derzhavainvest, JSC 6 Belinvestbank, JSC Technobank, JSC 7 Bank VTB (Belarus), CJSC Bank VTB (Belarus), CJSC 8 Belvnesheconombank, JSC Belagroprombank, JSC 9 Paritetbank, JSC Belgazprombank, JSC 10 Priorbank, JSC RRB-Bank, CJSC Five leaders in the primary non-government bonds market in 2010 Rating Issuers by turnover by number of transactions 1 ASB Leasing, PUE ASB Leasing, PUE 2 Belagroprombank, JSC Belinvestbank, JSC 3 Belarusbank, JSC Technobank, JSC 4 Belinvestbank, JSC Belarusbank, JSC 5 Priorbank, JSC Belagroprombank, JSC Five leaders in the secondary non-government bonds market in 2010 Rating Participant by turnover by number of transactions 1 Belarusbank, JSC Belarusbank, JSC 2 Grodno REC Belgazprombank, JSC 3 Belgazprombank, JSC Technobank, JSC 4 Vitebsk REC Royal-Trust, CJSC 5 Brest REC MPK Spector In Service, LLC 41

42 Investment structure of operations in non-government bonds market in 2010 Type of transaction Share in turnover, % Transactions concluded by participants on their own behalf and at their own expense 78,6 Transactions concluded by participants on their own behalf and at the expense of their clients, including: 21,4 Legal entities, including: 99,996 residents 97,6 non-residents 2,4 individuals, including: 0,004 residents 100,0 non-residents - Trading value in non-government bonds market in , BYR in billions Month January 171,1 502,8 February 217,2 306,6 March 103,7 410,3 April 76, ,5 May 210,6 718,8 June 773,1 579,5 July 189,4 508,0 August 213,3 378,6 September 205,7 345,4 October 189,3 538,9 November 566,2 446,4 December 687,5 647,6 Number of transactions in non-government bonds market in

43 Month January February March April May June July August September October November December Trading value in non-government bonds market in (by trading modes) Trading mode Number of securities, in Trading value, BYR in billions Number of transactions millions Increase, Increase, Increase, % % % Primary placement 837, ,8 +44, ,1 2,5 4,2 +68,0 Continuous double auction (Order-Driven 421, ,0 +464, ,2 2,7 6,0 +122,2 Market) Forward transactions (Quote-Driven 2 327, ,3-5, ,9 2,3 2,7 +17,4 Market) REPO Transactions 17,2 776, , ,7 0,1 3, ,0 Total 3 603, ,3 +82, ,9 7,6 16,8 +121,1 Structure and REPO transactions yield in non-government bonds market in REPO term Trading value, BYR in billions Yield, % per year Trading value, BYR in billions Yield, % per year 1-3 days 0,5 16,8 9,9 11,8 4-7 days 1,0 15,8 95,8 11, days 1,2 20,1 39,7 18, days 1,8 17,2 331,9 10, days 2,8 14,8 109,4 10, days 0,0-26,6 12, days 0,0-120,3 3,1 > 180 days 0,0-42,4 12,7 Yield upon transactions in the secondary non-government bonds market (REPO exclusive) in Month Trading value, BYR in billions Yield, % per year Trading value, BYR in billions Yield, % per year January 171,1 14,13 430,2 8,63 February 185,7 14,40 190,7 11,43 March 60,4 12,84 230,7 11,32 April 55,9 13, ,8 14,96 May 183,1 15,22 647,8 13,53 June 606,8 14,18 400,5 6,61 43

44 July 144,7 15,58 340,9 9,24 August 139,2 17,61 190,9 6,13 September 172,9 15,52 111,2 12,77 October 130,3 15,67 339,3 11,70 November 345,6 17,44 196,1 12,36 December 552,9 16,72 402,2 11,12 Statistics by non-government bonds types Exchange-traded bonds Ten Leading Participants in the Exchange-traded bonds market in 2010 Rating Participants by turnover by number of transactions 1 Belarusbank, JSC MTBank, CJSC 2 Belagroprombank, JSC Belarusbank, JSC 3 MTBank, CJSC Belinvestbank, JSC 4 Belvnesheconombank, JSC BelSwissBank, CJSC 5 Belgazprombank, JSC Belagroprombank, JSC 6 Belinvestbank, JSC ZepterBank, CJSC 7 Bank Moscow-Minsk, JSC Belgazprombank, JSC 8 Bank VTB (Belarus), CJSC Belvnesheconombank, JSC 9 BelSwissBank, CJSC Aygenis, CJSC 10 BPS-Bank, JSC BPS-Bank, JSC Investment structure of operations in the Exchange-traded bonds market in 2010 Type of transaction Share in turnover, % Transactions concluded by participants on their own behalf and at their own expense 76,5 Transactions concluded by participants on their own behalf and at the expense of their clients, including: 23,5 Legal entities, including: 100,0 residents 98,6 non-residents 1,4 individuals, including: - residents - non-residents - Trading value in the Exchange-traded bonds market in , BYR in millions 44

45 Month January 0,0 57,0 February 10,1 91,9 March 0,0 189,3 April 0,0 64,7 May 17,8 4,1 June 177,8 194,9 July 45,3 104,5 August 179,0 147,4 September 5,0 85,1 October 55,8 206,4 November 476,8 62,1 December 512,7 396,1 Number of transactions in the Exchange-traded bonds market in Month January 0 23 February 1 21 March 0 29 April 0 11 May 11 6 June July August September October November December Trading value in the Exchange-traded bonds market in (by trading modes) Trading value, BYR in billions Number of transactions Number of securities, in millions Trading mode Increase, Increase, Increase, % % % Primary placement 670, ,0 +49, ,1 1,6 2,6 +64,3 Continuous double auction (Order- Driven Market) 22,5 254, , ,0 0,1 1, ,9 45

46 Forward transactions (Quote-Driven 787,4 346,2-56, ,0 0,9 0,4-58,4 Market) REPO Transactions - 0, ,001 - Total 1 480, ,3 +8, ,0 2,6 4,7 +82,4 Structure of REPO transactions in the Exchange-traded bonds market in 2010 REPO term Number of transactions Yield, % per year Trading value, BYR in billions , ,73 0, ,50 0,2 Totals of the primary exchange-traded bonds market in 2010 Issuer Number of transactions Volume within modes BYR in billions USD in millions items Agroleasing, JSC 1 10,0 3, Belarusbank, JSC ,0 67, Belagroprombank, JSC ,8 84, Belinvestbank, JSC ,6 56, Paritetbank, JSC 1 15,0 5, ASB Leasing, PUE ,5 115, ASB Novator, PUE 2 14,1 4, Total ,0 336, Totals of the secondary exchange-traded bonds market in 2010 (by trading modes and Issuers) Issuer Number of Volume transactions BYR in billions USD in millions items Continuous double auction (Order-Driven Market) Belarusbank, JSC ,5 34, Belagroprombank, JSC 9 1,3 0, Belinvestbank, JSC ,4 49, Total ,2 84, REPO transactions Belarusbank, JSC 4 0,5 0,2 496 Belagroprombank, JSC 3 0,4 0,1 437 Total 7 0,9 0,3 933 Forward transactions (Quote-Driven Market) Belarusbank, JSC ,5 98, Belagroprombank, JSC 1 0,007 0,002 7 Belinvestbank, JSC 6 1,8 0, ASB Leasing, PUE 60 46,9 15, Total ,2 115, Total in segment ,3 535,

47 Bank bonds backed by home equity loans Five leading participants in the market of bank bonds backed by home equity loans in 2010 Rating Participants by turnover by number of transactions 1 Belarusbank, JSC MTBank, CJSC 2 Belgazprombank, JSC Belarusbank, JSC 3 MTBank, CJSC Aygenis, CJSC 4 Fransabank, JSC Belgazprombank, JSC 5 Diamondinvest, PC ZepterBank, CJSC Investment structure of operations in the market of bank bonds backed by home equity loans in 2010 Type of transaction Share in turnover, % Transactions concluded by participants on their own behalf and their own expense 55,5 Transactions concluded by participants on their own behalf and at the expense of their clients, including: 44,5 Legal entities, including: 100,0 residents 99,8 non-residents 0,2 individuals, including: - residents - non-residents - Trading value in the market of bank bonds backed by home equity loans in , BYR in billions Month January 134,9 0,1 February 1,9 0,0 March 8,9 0,9 April 2,7 101,3 May 59,9 57,4 June 291,3 109,5 July 46,6 41,7 August 5,3 2,1 September 11,7 41,2 October 2,0 1,0 November 0,2 11,3 December 0,0 1,7

48 Number of transactions in the market of bank bonds backed by home equity loans in Month January 24 1 February 3 0 March 6 2 April 4 2 May 5 3 June 8 8 July 4 5 August 8 5 September 17 1 October 4 5 November 2 2 December 0 8 Trading value in the market of bank bonds backed by home equity loans in (by trading modes) Trading value, BYR in billions Number of transactions Number of securities Trading modes Increase, Increase, Increase, % % % Continuous double auction (Order- 26,9 18,1-32, , ,7 Driven Market) Forward transactions (Quote-Driven 538,7 349,6-35, , ,7 Market) REPO Transactions - 0, Total 565,6 368,1-34, , ,1 Structure of REPO transactions in the market of bank bonds backed by home equity loans in 2010 REPO term Number of transactions Yield, % per year Turnover, BYR in billions ,0 0, ,0 0,2

49 Totals of the secondary market of bank bonds backed by home equity loans in 2010 (by trading modes and Issuers) Issuer Number of Trading value transactions BYR in billions USD in millions items Continuous double auction (Order-Driven Market) Belarusbank, JSC 19 17,2 5, Priorbank, JSC 2 0,9 0, Total 21 18,1 6, REPO Transactions Belarusbank, JSC 5 0,4 0,1 414 Total 5 0,4 0,1 414 Forward transactions (Quote-Driven Market) Belarusbank, JSC ,6 116, Total ,6 116, Total in segment ,1 122, Investment Bank Bonds Five leading participants in the investment bank bonds market in2010 Rating Participants by turnover by number of transactions 1 Belgazprombank, JSC MTBank, CJSC 2 Belarusbank, JSC Belinvestbank, JSC 3 MTBank, CJSC Technobank, JSC 4 Belinvestbank, JSC Paritetbank, JSC 5 Priorbank, JSC Belgazprombank, JSC Investment structure of operations in the investment bank bonds market in2010 Type of transaction Sare in turnover, % Transactions concluded by participants on their own behalf and at their own expense 69,5 Transactions concluded by participants on their own behalf and at the expense of their clients, including: 30,5 Legal entities, including: 100,0 residents 96,0 non-residents 4,0 individuals, including: - residents - non-residents - Trading value in the investment bank bonds market in , BYR in billions

50 Month January 36,2 35,8 February 205,3 123,1 March 94,8 28,9 April 73,7 619,2 May 132,9 496,9 June 304,0 53,8 July 96,2 165,2 August 26,7 48,5 September 184,9 89,5 October 128,4 241,2 November 75,2 299,5 December 169,3 169,0 Number of transactions in the investment bank bonds market in Month January 5 16 February March April May June July August September October November December Trading value in the investment bank bonds market in (by trading modes) Trading value, BYR in billions Number of transactions Number of securities, in millions Trading modes Increase, Increase, % % Increase, % Primary placement 167,6 211,9 +26, ,8 0,9 1,6 +75,7 Continuous double auction (Order- 358,7 481,8 +34, ,0 2,1 2,7 +30,0 Driven Market) Forward transactions (Quote-Driven 1 001, ,3 +47, ,5 0,9 2,0 +118,9 Market) REPO Transactions 0,1 201, , ,0 0, , ,3 Total 1 527, ,4 +55, , ,6 3,9 7,9 +103,1

51 Structure of REPO transactions in the investment bank bonds market in 2010 REPO term Number of transactions Yield, % per year Turnover, BYR in billions 4-7 days 28 10,21 11, days 5 11,41 1, days ,65 50, days 14 9,96 10, days 12 10,00 10, days 62 3,41 107,5 >180 days 23 10,00 10,5 Totals of the primary investment bank bonds market in 2010 (by trading modes) Issuer Number of transactions Volume BYR in billions USD in millions items Alfa-Bank, CJSC 3 30,0 10, Bank VTB (Belarus), CJSC 5 8,6 3, Belarusian Industrial Bank, JSC 4 8,5 3, BPS-Bank, JSC 2 6,0 2, Credexbank, CJSC 8 16,8 5, MTBank, CJSC 9 13,8 4, Paritetbank, JSC 5 36,1 12, Technobank, JSC 22 26,9 8, Priorbank, JSC 4 65,1 21, Total ,9 70, Totals of the secondary investment bank bonds market in 2010 (by Issuers) Issuer Number of Volume transactions BYR in billions USD in millions items Continuous double auction (Order-Driven Market) Alfa-Bank, CJSC 3 30,0 10, Bank VTB (Belarus), CJSC 5 8,6 3, Credexbank, CJSC 35 11,6 3, MTBank, CJSC 4 5,9 2, Zepter Bank, CLSC 15 14,1 4, Belarusbank, JSC 49 45,7 15, Belagroprombank, JSC 1 1,0 0, Belvnesheconombank, JSC 1 0,5 0, Belgazprombank, JSC ,6 56, Belarusian Industrial Bank, JSC 33 34,2 11, Paritetbank, JSC 37 52,9 17, Technobank, JSC 42 21,5 7, Priorbank, JSC 6 86,3 28, Total ,8 161, REPO Transactions Credexbank, CJSC 34 10,6 3, MTBank, CJSC 17 5,9 1, Zepter Bank, CLSC 4 0,5 0, Belarusbank, JSC 25 20,3 7, Belgazprombank, JSC 79 39,5 13, Belarusian Industrial Bank, JSC 34 14,0 4, Technobank, JSC 75 31,9 10, Priorbank, JSC 3 78,8 26,

52 Total ,4 66, Forward transactions (Quote-Driven Market) Alfa-Bank, CJSC 6 30,4 10, Credexbank, CJSC 8 22,7 7, Zepter Bank, CLSC 1 3,0 1, Belarusbank, JSC ,7 359, Belagroprombank, JSC 10 1,9 0, Belgazprombank, JSC ,5 71, Belinvestbank, JSC 7 41,7 14, Belarusian Industrial Bank, JSC 21 21,1 7, BPS-Bank, JSC 2 18,3 6, Technobank, JSC 41 27,8 9, Priorbank, JSC 2 22,0 7, Total ,3 494, Total in segment ,4 793, Non-bank investment bonds Five leading participants in non-bank investments bond market in 2010 Rating Participants by turnover by number of transactions 1 MTBank, CJSC MTBank, CJSC 2 Belinvestbank, JSC DERZHAVAINVEST, JSC 3 Paritetbank, JSC Belinvestbank, JSC 4 Bank VTB (Belarus), CJSC Paritetbank, JSC 5 BPS-Bank, JSC Bank VTB (Belarus), CJSC Investment structureof operations in non-bank investments bond market in 2010 Type of transaction Share in turnover, % Transactions concluded by participants on their own behalf and at their own expense 39,5 Transactions concluded by participants on their own behalf and at the expense of their clients, including: 60,5 Legal entities, including: 99,96 residents 100,0 non-residents - individuals, including: 0,04 residents 100,0 non-residents - Trading value in non-bank investment bonds market in , BYR in billions

53 Period January 0,0 4,6 February 0,0 3,7 March 0,01 1,1 April 0,01 0,2 May 0,01 16,2 June 0,0 9,8 July 1,2 40,0 August 2,3 27,7 September 4,0 22,6 October 3,2 21,1 November 4,1 43,3 December 5,5 46,0 Number of transactions in non-bank investment bonds market in Period January 0 42 February 0 55 March 1 10 April 1 2 May 2 57 June 0 36 July 4 52 August September October November December Trading value in non-bank investment bonds market in (by trading modes) Trading modes Trading value, BYR in billions Number of transactions Number of securities Increase, Increase, Increase % %, % Primary placement - 0, Continuous double auction (Order-Driven 13,2 41,0 +210, , ,9 Market) Forward transactions (Quote-Driven Market) - 24, REPO Transactions 7,2 171, , , ,0 Total 20,4 236, , , ,4

54 Structure of REPO transactions in non-bank investment bonds market in 2010 REPO term Number of transactions Yield, % per year Turnover, BYR in billions 1-3 days 18 11,82 9,9 4-7 days 20 14,46 10, days 19 12,27 8, days ,03 57, days 58 14,10 24, days 52 14,51 16, days 34 12,27 12,8 >180 days 39 13,60 31,9 Totals of the primary non-bank investment bonds market in 2010 (by Issuers) Issuer Number of Volume transactions BYR in billions USD in millions items Belarusian People s Insurance Pension Fund 1 0,01 0, Total 1 0,01 0, Totals of the secondary non-bank investment bonds market in 2010 (by Issuers) Issuer Number of transactions Volume BYR in billions USD in millions items Continuous double auction (Order-Driven Market) AvangardLeasing, CJSC 18 2,9 1, GlubokoeBioProduct, CJSC 4 1,0 0, Poultry farm OMC, CJSC 4 0,6 0, Royal-Trust, CJSC 118 9,8 3, DerzhavaInvest, JSC 12 1,3 0, Old Department Store, JSC 2 0,03 0, Alfa-Agro, LLC 63 5,5 1, Giper Microsystem, LLC 1 0,5 0, Lada OMS-Engineering, JLLC 10 2,5 0, MPK Spector In Service, LLC 18 6,3 2, OMS Agro, LLC 6 1,6 0, ProfRateInvest, LLC 1 0,4 0, Si-Trading, LLC 2 0,6 0, StroyFinProekt, LLC 10 2,9 1, Freliejseksim, UE 14 5,0 1, Total ,9 13, REPO Transactions GlubokoeBioProduct, CJSC 10 2,0 0, Poultry farm OMC, CJSC 13 3,5 1, Royal-Trust, CJSC 35 6,9 2, DerzhavaInvest, JSC 26 12,1 4, Alfa-Agro, LLC 14 5,2 1, Giper Microsystem, LLC 4 2,0 0, Intechnostroy, LLC 9 8,6 2, Lada OMS-Engineering, JLLC 11 4,2 1, Lombard-Gold, LLC 51 26,7 8, MPK Spector In Service, LLC 81 34,2 11, OMS Agro, LLC 31 9,8 3, ProfRateInvest, LLC 2 0,4 0, Sem Holmov Stroy, LLC 10 2,5 0, Si-Trading, LLC 3 0,6 0, StroyFinProekt, LLC 26 11,6 3,

55 Issuer Number of transactions Volume BYR in billions USD in millions items UniversalProektConstruction, LLC 13 22,1 7, Freliejseksim FreliaceExim, UE 25 17,0 5, PromTechPak, PC 7 2,0 0, Total ,2 57, Forward transactions (Quote-Driven Market) BMZ, UE 1 24,2 8,1 800 Royal-Trust, CJSC 1 0, 009 0, Total 2 24,2 8,1 810 Total in segment ,4 78, Municipal Loan Bonds Five leaders in the municipal loan bonds market in 2010 Rating Participant by turnover by number of transactions 1 National Bank of Belarus National Bank of Belarus Belagroprombank, JSC 2 Belarusbank, JSC Belarusbank, JSC 3 Belagroprombank, JSC Bank VTB (Belarus), CJSC 4 Bank VTB (Belarus), CJSC Belvnesheconombank, JSC 5 Belvnesheconombank, JSC Alfa-Bank, CJSC RRB-Bank, CJSC Investment strucure of operations in the municipal bond loans market in 2010 Type of transaction Share in turnover, % Transactions concluded by participants on their own behalf and at their own expense 100,0 Transactions concluded by participants on their own behalf and at the expense of their clients, including: - Legal entities, including: - residents - non-residents - individuals, including: - residents - non-residents - Trading value in the municipal bond loans market in , BYR in billions

56 Period January 0,0 405,3 February 0,0 87,9 March 0,0 190,2 April 0,0 394,1 May 0,0 144,2 June 0,0 211,5 July 0,0 156,6 August 0,0 153,0 September 0,0 107,0 October 0,0 69,2 November 10,0 30,2 December 0,0 34,8 Number of transaction in the municipal bond loans market in Period January 0 12 February 0 3 March 0 5 April 0 13 May 0 11 June 0 13 July 0 13 August 0 4 September 0 5 October 0 8 November 1 2 December 0 2 Trading value in the municipal bond loans market in (by trading modes) Trading modes Trading value, BYR in billions Number of transactions Number of securities Continuous double auction (Order-Driven Market) , REPO Transactions 10,0 402, Total 10, ,

57 Yield upon transactions (REPO exclisive) in the municipal bond loans market in 2010 Month Trading value, BYR in billions Yield, % annual January 395,3 7,74 February 87,9 4,62 March 190,2 10,27 April 380,7 16,03 May 127,7 13,47 June 191,5 0,00 July 102,6 0,10 August 89,0 0,00 September 12,3 9,22 October 0,0 - November 0,0 - December 4,8 0,00 Yield upon REPO transactions in the municipal loan bonds market in 2010 Month Trading value, BYR in billions Yield, % annual January 10,0 18,50 February 0,0 - March 0,0 - April 13,4 13,61 May 16,5 12,20 June 20,0 10,50 July 54,0 10,00 August 64,0 9,92 September 94,7 9,96 October 69,2 10,03 November 30,2 10,08 December 30,0 10,03 Structure of REPO transactions in the municipal loan bonds market in 2010 REPO term Number of transactions Yield, % per year Turnover, BYR in billions 4-7 days 3 11,41 73, days 2 9,83 30, days 15 10,38 224, days 4 10,00 73,9 Totals of the secondary municipal loan bonds market in 2010, indicating Issuers Issuer Number of Volume transactions BYR in billions USD in millions items Continuous double auction (Order-Driven Market) Baranovichi CEC ,3 10, Baranovichi DEC ,0 3, Beresa DEC 1 5,0 1, Brest CEC 3 127,0 42, Brest REC ,0 78, CEC City Executive Committee DEC District Executive Committee REC Regional Executive Committee

58 Brest DEC 1 9,0 3, Vitebsk REC 1 100,0 34, Gantsevichi DEC 1 3,0 1, Gomel REC 2 120,0 41, Grodno CEC 2 25,0 8, Grodno REC ,5 161, Drogichin DEC 1 5,0 1, Zhabinka DEC 1 2,0 0, Ivanovo DEC 1 3,0 1, Ivatsevichi DEC 2 30,0 10, Kamenets DEC 2 3,6 1, Kobrin DEC 2 74,0 24, Lida DEC 1 26,6 9, Luninets DEC 2 37,0 12, Lyahovichi DEC 1 10,0 3, Malorita DEC 3 19,0 6,4 32 Minsk REC 1 85,0 29, Mogilev CEC 1 20,0 6,7 200 Mogilev REC 1 51,5 17,8 100 Pinsk CEC 1 20,0 6, Pinsk DEC 1 5,0 1, Pruzhany DEC 3 23,5 7, Stolin DEC 1 15,0 5, Shklov DEC 1 20,0 6, Total ,0 537, REPO Transactions Vitebsk REC ,5 49, Grodno REC 5 99,7 33,4 10 Minsk CEC 5 34,3 11, Mogilev REC 3 118,5 39, Total ,0 133, Total in segment ,0 671, FOREX MARKET Structure of foreign currency purchase and sale in the currency market in Market segment 2009 Unit weight, % 2010 Unit weight, % Change in 2010 USD in millions Unit weight change Exchange currency market ,6 8,6% ,9 18,9% +50,3% +10,3% OTC currency market ,7 83,8% ,9 68,2% -44,4% -15,5% Cash currency market ,4 7,6% ,8 12,8% +14,8% +5,2% Total currency market ,7 100,0% ,6 100,0% -31,8% 0,0% 5 6 By National Bank data By National Bank data

59 Currency market instruments admitted to circulation as of Financial instrument Currency lot Conjugate currency USD/BYR US Dollar Belarusian ruble RUB/BYR Russian Ruble Belarusian ruble EUR/BYR Euro Belarusian ruble UAH/BYR Hrivna Belarusian ruble AUD/BYR Australian dollar Belarusian ruble GBP/BYR British Pound Sterling Belarusian ruble DKK/BYR Danish krone Belarusian ruble ISK/BYR Iceland krona Belarusian ruble CAD/BYR Canadian dollar Belarusian ruble LVL/BYR Latvian lat Belarusian ruble LTL/BYR Lithuanian litas Belarusian ruble NOK/BYR Norwegian krone Belarusian ruble PLN/BYR Zloty Belarusian ruble SEK/BYR Swedish krona Belarusian ruble CHF/BYR Swiss franc Belarusian ruble EEK/BYR Krona Belarusian ruble CNY/BYR Chinese Yuan Belarusian ruble JPY/BYR Yen Belarusian ruble Ten leading participants in the foreign currency market in 2010 Rating 1 National Bank of Belarus 2 Belarusbank, JSC 3 Priorbank, JSC 4 Belagroprombank, JSC 5 Bank Moscow-Minsk, JSC 6 BPS-Bank, JSC 7 Belinvestbank, JSC 8 Bank VTB (Belarus), CJSC 9 Belrosbank, CJSC 10 Belgazprombank, JSC Participant Foreign currency trading values in , BYR in billions Month January 4 381, ,0 February 2 896, ,9 March 2 441, ,5 April 2 574, ,6 May 2 458, ,2 June 3 903, ,7 July 4 236, ,2 August 2 428, ,9

60 September 2 504, ,5 October 2 851, ,8 November 3 030, ,7 December 5 661, ,0 Total , ,0 Foreign currency trading values in (by currencies) BYR in billions Currency Change, % Russian Ruble 6 625, ,7 +44,4 US Dollar , ,5 +75,9 Euro 9 999, ,6 +37,4 Other 85,9 99,2 +15,5 Total , ,0 +60,7 Trading value dynamics of basic traded instruments in 2010 USD/BYR RUB/BYR EUR/BYR Rate change of basic traded currencies to Belarusian ruble in 2010 Currency Exchange rate Exchange rate as of as of Change Russian Ruble 94,53 98,44 +4,1% US Dollar ,9% Euro ,3% Maximum increase and daily exchange fluctuations in 2010 Russian Ruble US Dollar Euro max deviation BYR max daily exchange fluctuations max deviation BYR max daily exchange fluctuations max deviation BYR max daily exchange fluctuations 2,01 2,1% 30 1,0% 76 2,1%