MTS Company Overview

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MTS Group Overview

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MTS Markets Historical Background

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• Created by Italian Treasury in 1988 The MTS electronic trading system was established by the Italian Treasury and Bank of Italy in collaboration with primary dealers in 1988 to improve the liquidity and transparency of the Italian government bond market

• Interdealer Cash Market Model Exported in 1999 The MTS model was exported in 1999 by MTS, initially to the Netherlands, Belgium and France, followed by the creation of a pan-European platform, EuroMTS, which set new standards for benchmarks

• Only True Pan-European Market Today, from its domestic roots in Italy, MTS has become the only true pan-European market for fixed income securities present in all eurozone countries and other debt markets in Europe and beyond

MTS Overview

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• Europe’s premier electronic fixed income trading market, with over 500

unique counterparties and average daily turnover exceeding EUR 85

billion

• State-of-the-art technology, expert knowledge and client-focused

consultancy to benefit all market participants, including issuers, primary

dealers and market makers

• Supports the full chain of pre-trade, trade execution and post-trade

capabilities across cash and repo markets, and also provides independent

benchmark market data and comprehensive fixed income indices

• Trading platforms are used daily by a very wide number of diverse

counterparties, ensuring optimum liquidity for all participants

Historical Example of the Effect of

MTS on Bid/Offer Spread

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Czech Republic 4,125% 2020 Czech Republic 4,625% 2014 Poland 3,625% 2016 Poland 3,875% 2009 Poland 4,200% 2020 Poland 4,500% 2013

Poland 5,500% 2011 Rep. of Hungary 3,500% 2016 Rep. of Hungary 3,625% 2011 Rep. of Hungary 3,875% 2020 Rep. of Hungary 4,000% 2010 Rep. of Hungary 4,375% 2009

Rep. of Hungary 4,500% 2013 Rep. of Hungary 4,500% 2014 Rep. of Hungary 5,625% 2011 Rep. of Lithuania 4,50% 2013 Slovak Republic 4,5% 2014 Slovak Republic 7,375% 2010

Launch of

NewEuroMTS

MTS Offering to Issuers

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MTS offers a trading venue to facilitate the primary market, providing the

technology and information for issuers to conduct electronic auctions with

primary dealers

• Traditional primary auctions including grey market trading

• Switch auctions

• Tap and buy-back functionality

Furthermore the MTS team offers a number of value-added services to

issuers throughout the post-trade process, providing the data and reports

required to optimise their fixed income operations.

MTS Cash – B2B interdealer market

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MTS Cash is quote driven secondary market with links to all major European depositories and central clearing houses providing full straight through processing

Trading all European Government bonds and Sovranationals, Agencies and Covered

Trading functionality:

• Auto-matching of quotes – price and time priority algorithm automatically matches quotes of both counterparties

• Matching between orders (hit/lift) and quotes (bid/offer) – orders executed according to the time they are sent

• Mid price crossing – order book referenced to the MTS order book to determine a real-time mid price level at which orders are matched

• Parallel quoting – simultaneously enter a proposal for the same bond in benchmark segment and domestic markets

MTS Repo

Trading functionality:

• Click to trade

• Request For Quote with chat functionality

• Dedicated OTC booking mechanism

• Consolidation of all trading activity into a single blotter

• Sophisticated credit line management and intra-day credit control

functionality

MTS Repo is an order driven market delivering deep liquidity for both cash

investors and specific bond traders with fully automated settlement and

connectivity to Clearing Houses.

List all durations on all European government bonds

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MTS BondVision – B-to-C platform

• Top tier market makers – high liquidity

• Independent and broker-neutral

• Optimal trading and workflow technology

• RF(C)Q, MultiLeg RF(C)Q, Click-to-Trade

• Single Dealer Pages

• Full suite of post-trade tools

• Open architecture for seamless integration including STP

• Independent benchmark market data direct from MTS

• Free access to comprehensive indices

• Compliance with pending regulations

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MTS Cash & BondVision CMF workspace

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MTS BondVision RFQ

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Monthly Bid-Offer spread benchmarks

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MTS Data

MTS data is sourced from MTS Cash which has a trading community of over 100

unique counterparties generating over 30,000,000 quotes and orders on a daily basis.

MTS Data prices are executable only, never indicative.

Access to the richest source of liquidity for European government bonds with

unparalleled real-time post-trade data

MTS Data is complemented by a suite of benchmark data products produced including:

• MTS Live – Ultra low latency real-time data with full order book depth for participants

only

• MTS Historical Data – Tick-by-tick data for every price, order and trade processed by

the matching engine

• MTS Reference Prices – Official open/close price fixings

• MTS Reference Data – Full terms and conditions data sourced directly from the MTS

platform

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MTS Indices

• Independent, transparent, replicable, real-time total-return indices

• As derived from MTS Data they represent the best available benchmark to

measure performance of FI portfolios in the euro bond markets

• They serve as the reference for numerous financial instruments

e.g. ETFs, structured products, bond funds and index

certificates

www.mtsindices.com

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