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Measures taken by MICEX-RTS concerning the outage on the Exchange"s Main Market on April 23, 2012

On April 23, 2012 the Main market sector of the MICEX-RTS Group's Securities market suffered technical problems, i.e. at 5.45pm MSK market data in the order book of market participants ceased to be updated.
At 5.56pm MSK the MICEX Stock Exchange General Director announced that trading was to be suspended until 6.56pm MSK in order to contain the situation.
At 6.45pm MSK the suspension was extended until 7.35pm MSK and then until 7.55pm MSK.
Effects of the 120-minute outage were not eliminated and at 8.10pm MSK the General Director announced the emergency situation in the Main Market sector based on clause 1.13.9 of the Trading rules of CJSC MICEX Stock Exchange.
Range of organizational and technical measures was taken to recover from the emergency situation and by 9.30pm MSK the operability of the trading system were restored.
To generate the representative closing price and protect investors' rights the following schedule of trading was established:

• 9.50pm - 10.10pm – trading period in the Main trading mode of the Main trading session;
• 9.50pm - 10.10pm – execution of trades in the Negotiated trades mode and repo trades.
• 10.20pm – close of the main trading session.

The Exchange applied to the Bank of Russia for extension of operating time of the multivoyage payment processing system in order to minimize implications of the emergency situation.
Decisions taken by the Directorate of the Exchange and competent actions of Exchange's specialists allowed trading members to close their operations including cancel orders, perform clearing and fulfill obligations under executed trades even under the outage circumstances.
MICEX-RTS realizes the consequences that the outage could bring to the market and apologizes to trading members. The Exchange firmly intends to detect and examine causes of the disruption.



On causes of the outage on April 23, 2012 and undertaken measures

On causes of the outage on April 23, 2012 and undertaken measures A thorough review of circumstances associated with the outage of the Equities market main section on April 23, 2012 was conducted by MICEX-RTS technical team and industry experts.
The analysis pointed to the error in processing a market transaction that triggered fault of the trading system's real time backup solution. Because of that the gateways were unable to verify the validity of distributed data, which in its turn resulted in a halt of orders and trades information being refreshed. The root cause is identified as a simultaneous failure of the software and the hardware that provide redundancy for the trading system.
To eliminate effects of the outage, by the start of trading on the 24th of April, 2012 the faulty hardware unit powering the MICEX-RTS Stock Exchange trading system was replaced. In addition, the set of default outage scenarios has been adjusted. A special test environment was assembled to continue probing and simulating a wider set of outage scenarios.
A working group has been established for comprehensive examination and analysis of the outage causes, development of the rectification measures and recommendations to mitigate the risks of reoccurrence.