CONFERENCE IMPLEMENTATION OF MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE -MiFID- Split, June 2007 OPENING SPEECH Ante Samodol President of the Board

Four key measures of the Financial Services Action Plan -FSAP Market Abuse Directive (3 December 2002) Prospectus Directive (15 July 2003) Markets in Financial Instruments Directive – MiFID (27 April 2004) Transparency Directive (11 May 2004)

The four-level regulatory approach-Lamfalussy process Commission adopts formal proposal for Directive/Regulation after a full consultation process LEVEL 1 European ParliamentCouncil Reach agreement on framework principles and definition of implementing powers in Directive/Regulation LEVEL 2 Commission, after consulting the European Securities Committee, requests advice from the European Securities Regulator Committee on technical implementing measures on the basis of a provisional mandate which is made formal once final agreement has been reached on the Level 1 measure Committee of European Securities Regulators prepares advice in consultation with market participants, end-users and consumers, and submits it to Commission Commission examines the advice and, following the publication of a working document containing an initial view on the content of the draft implementing measures, makes a proposal to European Securities Committee European Securities Committee votes on proposal within a maximum of 3 months Commission adopts measure European Parliament kept fully informed and can adopt a Resolution if measures exceed implementing powers

The four-level regulatory approach-Lamfalussy process LEVEL 3 LEVEL 4 Commission may take legal actions against Member State suspected of breach of Community Law Committee of European Securities Regulators work on joint implementation recommendations, consistent guidelines and common standards (in areas not covered by EU legislation), peer review, and compares regulatory practices to ensure consistent implementation and application Commission checks Member State compliance with EU legislation

The Committe of European Securities Regulators - CESR CESR published (29 May 2007) set of guidance and recommendation for MiFID: recommendation on Passporting and Protocol on Notification Q&A on best execution recommendation on inducements guidelines on transaction reporting

CESR level 3 Work programme in relation to MiFID can be accessed via following link:

Conference is opened… Thank you for your attention !