The Budapest Stock Exchange at a glance XIII. Logistics Forum, Turkish-Hungarian Business Relations György Mohai Deputy CEO February, 2007

2 Overview of the Budapest Stock Exchange Was founded in 1864 and reopened in 1990 Demutualization in 2002 Lean and efficient organization Full service range (equity, debt, derivatives, commodities) Electronic remote trading system, X-Stream (OM brand) CCP on all markets Market capitalization/GDP ratio of 33% Companies in Category „A” report quarterly and in line with IAS/US-GAP since 1999

3 The Role of the Stock Exchange in Hungary Multinationals – A big part of the Top 100 companies are multinationals (Hungarian subsidiaries); they won’t be listed on BSE. Big Hungarian companies - are already listed State owned big companies – possible form of privatization? Companies founded after the transformation – mostly premature for listing Developed banking system – an easy way of getting financial sources

4 Structure of the market Budapest Stock Exchange Section members Bank, Brokerage houses Section members Banks, Brokerage houses KELER Clearing and settlement orders Tranding data InvestorsInvestors InvestorsInvestors Supervisory (HFSA, BSE)

5 Market dynamics reflect global trends

6 Weight of BSE in the region Market capitalization 163 EUR bn, 1,6% of EU Turnover of Equities 80 EUR bn, 0,62% of EU Source: FESE

7 The turnover of the BSE in ‘04-’05-’06 Daily average turnover on the spot market: EUR 125 million in 2007 EUR 105 million in 2006 EUR 81 million in 2005 EUR 46 million in 2004 EUR 35 million in 2003 Derivatives market turnover up 116% in 2005 and 40% in 2006 Derivatives market turnover hits the turnover of the spot market’s

8 Strategy: vertical and horizontal integration joint data and information vending joint index license sales strategy harmonization of corporate governance recommendations Integration with the Budapest Commodity Exchange completed BSE is in strategic alliance with Wiener Börse

9 Market strategy Maintaining and widening close relationship with foreign investors (currently hold app. 80% of shares) Supporting the growing domestic fund management business Image campaign Providing education and information for individual investors Enhancing domestic interest

10 Attracting new issuers Amendments to the Capital Market Act and the Exchange rules made access easier to the exchange Attractive fee structure Keeping in touch with potential newcomers (Club of Quotables) Funds are available to contribute to the cost of going public

11 Product development successes at BSE Cash market BUX tracking ETF – December 2006 Derivatives market Gold futures - April 2006 Continuous product development on FX and single stock market

12 Current and future challenges Opening the market MiFID International integration

13 Budapest Stock Exchange Limited Contact