1. ECSDA European Central Securities Depositories Association Update on ECSDA Activities San Salvador March 2006

2. Agenda • A quantum leap for ECSDA • Key activities in 2005- Progress on removing select Giovannini Barriers - Work on policy issues of common interest in the European post-trade area - Responses to public sector and industry consultations • Outlook 2006- Completion of the ECSDA Disclosure Framework - Other documents planned for release in 2006

3. A quantum leap for ECSDA The two European CSD associations join hands: “new ECSDA” is born on 20 January 2006 CEECSDA: 17 members “Old“ ECSDA: 19 members • ECSDA is now a much larger forum for discussion and cooperation. • It speaks as one voice to the European authorities on regulatory issues.

4. Key Activities in 2005 Giovannini Reports of 2001 + 2003: 1. IT standards and interfaces 2. Mandated settlement paths 3. Market practices in asset servicing 4. Absence of intra-day finality 5. Practical impediments to remote access to SSS 6. Settlement timings 7. Absence of synchronized system operating hours 8. Diverging issuance practices 9. Restrictions on safekeeping location of securities 10. Restrictions on primary dealer activity Market Practice 11. Withholding tax issues 12. Collection procedures for transaction taxes Tax 13. Legal treatment of interests in securities 14. Legal treatment of netting 15. Diverging conflict of law rules Law

5. Key Activities in 2005 Progress on Giovannini Barrier 3: Harmonisation of national rules relating to corporate actions processing • First Report released in June 2005: 16 standards in the area of cashand stock distributions, and a proposed implementation timetable • ECSDA worked in close co-operation with:- European Association of Listed Companies (EALIC)- European Securities Forum (ESF)- European Banking Federation (EBF) • Other corporate action events to be looked at later • Average adherence to the standards was around 52%for 17 countries at the end of October 2005.

6. Key Activities in 2005: Progress on Giovannini barriers 4 and 7 4: Intra-day finality in all links between SSS in the EU 7: Harmonized operating hours and settlement deadlines • Objective: to enable investors to move securities and cash timely and efficiently across borders throughout the EU market space. • 10 standards, to be implemented between April 2004 and April 2005 • Obstacles: - Far ranging implications on CSD participants’ systems, resistance from domestically oriented members - Unclear implications of TARGET 2(→ RTGS payment system of the European System of Central Banks) • Average adherence to the standards was around 85%for 17 countries at the end of April 2005.

7. Key Activities in 2005 Work on policy issues of common interest in the European post-trade area • ECSDA position regarding a potential EU Framework Directive on clearing and settlement: ECSDA opposes a Directive. • ECSDA prefers the EU Commission to focus on removing the legal and fiscal barriers identified by the Giovannini Group. • ECSDA supports the EU Commission’s Regulatory Impact Assessment which precedes the decision on a Directive. • ECSDA actively contributes to the work of the CESAME group, notably by providing detailed information on its members’ operations and range of services offered.

8. Key Activities in 2005 Responses to public sector industry consultations, and torequests for comment on industry projects • Consultation on possible legislation to enhance and harmonize shareholders rights • Draft protocol recommendation to remove Giovannini Barrier 1 • .....

9. Outlook 2006 Completion of the ECSDA Disclosure Framework • The “Disclosure Framework” will be completed in 2006 • It will be made available on www.ecsda.com • Updates as needed, at a minimum once a year

10. Outlook 2006 Other ECSDA documents planned for release in 2006: • Update of the ECSDA cross-border DVP model, in light of the development of TARGET 2 (Q2 2006) • Report on the harmonization of market claims (Q2 2006)

11. N O R E X Oslo (Nor)Reykjavik (Ice)Copenhagen(Den)Helsinki (Fin)Stockholm (Swe)Talin (Est)Riga (Lat)Vilnius (Lit) SWX Euronext L SELondon Stock Exchange SWX v i r t - x DeutscheBörse BorsaItaliana WienerBörse ATHEXAthens Stock Exchange Bolsa yMercados Españoles O M X LIFFE EUREX XETRA LCH - Clearnet x - c l e a r EUREX-Clearing C C G C C P -Austria Clearnet L C HLondon Clearing House planned Planned Euroclear Euroclear CREST S I SSega InterSettle S I SSega InterSettle S I SSega InterSettle ClearstreamInternational MonteTitoli OeKBOesterr. Kontrollbank CSD IBERCLEAR VPS (Nor) VBSI (Ice) VP (Den) APK (Fin) ECSD (Est) LCD (Lat) VPC (Swe) CSDL (Lit) EC France EC Netherland Interbolsa SIS CREST Euroclear EC Belgium C B L C B F Trading, Clearing & Settlement in Europe '06