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2. THE EFFECTS OF THE PROJECT SEM-ON.NET AND PRESUMPTIONS FOR THE FUNCTIONAL INTEGRATION Andrej Šketa Executive Vice President & COO Ljubljana Stock Exchange November 2007

3. 3 Regional perspective +High growth economies +Capital markets reforms +Pension reforms ~Capital markets as source of founds for development –Fragmented markets –Low international visibility –Ineffective infrastructure

4. 4 INDUSTRY STRUCTURE National market Global market Regional market Instruments EquitiesBondsBlock tradingDerivativesOther instruments Listing Trading Information control Clearing and settlement Registry Vertical Horizontal Marketing Structured products

5. 5 SEM-ON.NET Project 2002 - 2006: Joint presentation of the markets Access to the on-line data Rising of the standards   Target groups:   investment firms   stock exchanges   Results:   development of national markets   awareness of the region

6. 6 OPPORTUNITIES IN THE REGION Short term (2008-09):   International marketing of the region:   Defining the region   Regional Blue chips   International Road shows   New - regional indices Medium term (2009-11):   Structured products for cross-exposing the markets   Cross membership   Clearing and settlement, CCP   Derivatives Long term (2011-):   Full MiFID environment

7. MARKET 1 Marketing Information Control Trading Listing Clearing and settlement Registry International Marketing Statistics – Regional Derivatives New Regional Products MARKET 2 Marketing Information Control Trading Listing Clearing and settlement Registry

8. 8 Key success factors Forward looking Business approach Focusing on regional attributes Support by regulators Part of EU accession process Institualisation of cooperation –Model of ‘Star alliance’ Separate and focused entity Sharing regional concepts and infrastructure Being focused locally

9. 9 Andrej Šketa Executive Vice President & COO Ljubljana Stock Exchange THANK YOU FOR YOUR ATTENTION. http://www.ljse.si