Short sales on the Russian Stock Exchanges

We wish to notify you that the requirements of the Order of the Russian Federal Service of Financial Markets 13-71/pz-n of August 8, 2013 “On uniform requirements to the rules of performing brokerage while carrying out certain transactions for account of clients”  (herein – “the Regulation”) will be implemented on 27th March 2014.  The Regulation will prevent brokers from entering into transactions for the sale of Russian local equities on the Anonymous mode of the Moscow Exchange if the price at which any part of your trade would be executed is:

a) 5 percent or more lower than the closing price or the last trade price (if the exchange does not determine the closing price) of the appropriate securities on the Anonymous mode on the exchange for the previous trading day, and

b) below the last current price on the exchange; and

c) below the last traded price on the exchange,

and where the applicable broker does not hold sufficient inventory in the relevant stocks at the time of the order submission.


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