The RTS Stock Exchange And The "RTS-Interfax" Index Agency To Discuss Possible Changes In S&P/RUIX Indices With Professional Market Participants

The RTS Stock Exchange and the "RTS-Interfax" Index Agency would like to discuss possible changes in the S&P/RUIX indices used as the underlying commodity for FORTS-traded futures contracts with professional market participants.

It is suggested that the number of shares used in calculating market capitalization for investment indices S&P/RUIX be increased, and a new parameter, free float, introduced.

"Free float is widely used in investment indices such the Vienna Stock Exchange's RTX, the S&P and DAX families, and many others", - says Alexey Savatyugin, the "RTS-Interfax" general director. "However, it hasn't been utilized in Russia yet".

To represent free float accurately, total market capitalization should be adjusted to exclude the following:

• Government holdings;
• Management and employee holdings;
• Strategic investor holdings;
• Affiliated parties cross-holdings;
• Treasury stock.

Roman Goryunov, the head of the RTS Derivatives Division, noted that given current Russian environment, free float calculation might prove rather challenging. "The RTS Derivatives Committee decided at its August 13, 2002, meeting to invite all interested parties to participate in discussions on the subject", says Goryunov.

Your suggestions on possible changes in S&P/RUIX indices should be submitted by e-mail to index@rux.ru before September 1, 2002.

The RTS Derivatives Committee will discuss the final version of the document in September.