1. BBA’s European Securities Forum Thursday, 12th October 2006 Implications of MiFID For Exchanges Burçak Inel Head of Regulatory Affairs Federation of European Securities Exchanges Brussels, Belgium www.fese.org

2. About FESE Key features of MiFID Publication of Data Process Conclusion FESE at a Glance 24 Members –Representing 36 exchanges FESE Secretariat –Based in Brussels, Belgium –Secretary General: Judith Hardt FESE MiFID Task Force –Chairman: Ludovic Aigrot –Actively contributing to legislative process About FESE

3. Key features of MiFID Publication of Data Process Conclusion FESE Members About FESE

4. Key features of MiFID Publication of Data Process Conclusion FESE Members About FESE  Market Value > 10,000 billion EUR  Turnover 1 > 17,000 billion EUR 1 Turnover is defined in FESE Statistic Methodology as the total number of shares traded multiplied by their respective matching prices. Liquidity pool Annual Turnover EUR Billion Market Cap. Growth % Annual Turnover EUR Billion Market Cap. Growth

5. About FESE Key features of MiFID Publication of Data Process Conclusion MiFID: Key features related to markets COB including Best Execution Rules for RMs and MTFs Choice among execution venues Transparency requirements Publication and consolidation of data Key features of MiFID

6. About FESE Key features of MiFID Publication of Data Process Conclusion New framework for market operators and Regulated Markets Management requirements Operating rules Access and Remote membership rules Rules concerning admission to trading Enforcement of compliance with EU law on prospectuses, Market Abuse and Transparency obligations Requirements regarding pre- and post- trade transparency of RM Key features of MiFID

7. About FESE Key features of MiFID Publication of Data Process Conclusion New framework for execution of orders Venues: –RMs –MTFs –Systematic internalisers –Other OTC Key principles: –Choice for investors –Level playing field –Price transparency Key features of MiFID

8. About FESE Key features of MiFID Publication of Data Process Conclusion Publication of Data Pre-trade & Post-trade Diversity of channels Basic requirements Perspective of FESE members –Importance of transparency to our markets –Technical standardisation to be left to market forces –Potential usefulness of CESR L3 work to ensure quality of data –Exchanges ready to help other venues to comply with MiFID Publication of Data

9. About FESE Key features of MiFID Publication of Data Process Conclusion Process Member States: –Transposition by Jan. 2007 European Commission: –Working with the MSs during transposition –“Interpretative guidelines” & “Communications” –Enforcement CESR: –L3 guidance/supervisory convergence Industry: –Application by Nov. 2007 Process

10. About FESE Key features of MiFID Publication of Data Process Conclusion Art. 65 and Level 2 reviews Inter alia: Transparency Extension (L1 Art. 65.1) –31/10/2007 Article 27 MiFID (L1 Art. 65.2) –31/10/2008 Consolidation of information (L1 Art. 65.4) –30/4/2008 Best Execution data (L2 Dir. Art. 44.5) –31/10/2008 Block Trades (L2 Reg. Art. 40.3) –31/10/2009 Process

11. About FESE Key features of MiFID Publication of Data Process Conclusion FESE members: Support principles of greater competition and integration Welcome the opportunity to serve their clients better in a more competitive & integrated market Are ready to help other execution venues comply with MiFID Will contribute to CESR L3, national transposition and Commission’s convergence and evaluation work. Conclusion

12. About FESE Key features of MiFID Publication of Data Process Conclusion Contact details: Burçak Inel Head of Regulatory Affairs Federation of European Securities Exchanges AISBL Avenue de Cortenbergh 52 1000 Brussels Tel:+32 2 551 01 82 GSM: +32 496 34 47 88 Fax:+32 2 512 49 05 inel@fese.eu www.fese.eu Conclusion