ADVISORY GROUP Bucharest 30 June-1st July 2011 Yvon LUCAS Chairman Harmonisation Steering Group

Back office 1 Back office 2 Back office 3 Modèle 2 CSD 1 CSD 2 CSD 3 Modèle 1 Modèle 3 CUSTODIAN Central back office CSD 1 in T2S CSD 2 in T2S CSD 3 in T2S CUSTODIAN Central back office CUSTODIAN CSD T2S Markets 2AG meeting Local custodian Local custodian ? Towards a simplified gateway for users and efficient cross-border central asset servicing for CSDs once harmonization is achieved.

3AG meeting Harmonisation Steering Group - Current Status -  The Harmonisation Steering Group (HSG) has been created following the decision taken by the Advisory Group in March 2011 and has had two meetings (05/05 and 17/06) since it has been set up.  The rolling list of harmonisation activities has been stabilised subject to the validation of the Advisory Group. It defines the objectives, the status of the monitoring and implementation.

4AG meeting  « High priority » activities (essential for the T2S launch) T2S Message T2S Operational day Smooth cross-CSD settlement Corporate actions on flows Legal harmonisation (location of securities accounts, settlement finality, IT outsourcing) Settlement market practices Settlement cycles Harmonisation Steering Group - Current Status -

5AG meeting  « Low priority » activities (essential, however non blocking for the launch of T2S) Corporate actions on stocks Legal harmonisation (place of issuance) Tax procedures Cross boarder shareholder transparency Investment funds settlements Harmonisation Steering Group - Current Status -

6AG meeting  A letter to the European Commission (DG MARKT) is submitted to the Advisory Group, aiming at underlining essential topics to be harmonised for a successful launch of T2S - and subsequent risks if not harmonised. o This letter to be sent by the Chairman of the Advisory Group would help the Commission in the perspective of legislative plans (CSD Rules, SLD).  The HSG has elaborated its first Progress Report to the AG whereby a status update has been drawn up for each harmonisation activity. Harmonisation Steering Group - Current Status -

7AG meeting  All questions and issues being compiled, the implementation of harmonisation is now a challenge for all markets which will have to get even more involved.  Each central bank and market regulator will have to play a key role to foster the implementation of harmonisation. NUGS will be fully involved in the monitoring of the harmonisation implementation. o The HSG offers to elaborate a list of harmonisation issues per market in collaboration with the local NUG. Harmonisation Steering Group - Current Status -