Press Conference Press Conference Madrid, 2nd April 2008
Link Up Markets – joint venture partners Link Up Markets – joint venture partners Seven leading European CSDs Link Up Markets Almost 50 % market share in settlement volumes and 45 % in asset holdings -2-
Link Up Markets - answer to changing environment Link Up Markets - answer to changing environment 2000 2007 2009 2013 Demand for integration of financial markets in Europe ‘Lisbon Agenda’ / ‘Financial Service Act’: Link Up Markets until 2010 to promote cross-border activities. TARGET2-Cash Improves efficiency TARGET2- Securities Facilitates interoperability Code of Conduct Drives Removal of harmonisation Giovannini Barriers Increases MiFID choice Facilitates integration of European financial markets immediately -3-
Link Up Markets - business objectives Link Up Markets - business objectives � Leveraging existing expertise, know-how, Joint efforts CSD-infrastructures � Sharing of investments and costs � Generating scale efficiencies � Shared ownership Fair governance � Open to all interested European and Overseas CSDs Foundation of Link-Up Capital Markets S.L. � Leveraging infrastructures and service portfolios of participating CSDs � Supporting the harmonisation of participating CSDs � Developing, maintaining and operating of common IT solution -4-
Link Up Markets - approach to efficiency Link Up Markets - approach to efficiency Link Up Markets model will replace current Today inefficient set-up: � Single point of access for CSDs to participating markets Other CSDs CSDs Other � Easy implementation of enhanced CSD-links in Central Bank Money leveraging TARGET2-Cash � Reuse of efficient local infrastructures Future � Absorbing differences in market standards � Best-in-class CSD services for all asset classes (excluding derivatives) and multiple currencies � Continuous harmonisation of market practices Link Up Markets � Flexible extension of market coverage in Europe and beyond Other CSDs Other CSDs � Launch in 1st half 2009 DIRECT CROSS-BORDER ACCESS via local CSD infrastructure -5-
Link Up Markets - service deliverables in 2009 Link Up Markets - service deliverables in 2009 (for all assets excluding derivatives) portfolio in line with market demand Settlement Services* Further leverage of joint service (in Central Bank Money) Basic Asset Services* CORE Services (Custody / Corporate Actions / Tax Services) Shareholder Services* (Services on General Meetings e.g. Proxy services) Liquidity Management Support* (Forecasts of Cash and Securities positions) Reporting* (Regulatory Reporting, Market Guides, Documentation) * services already partly delivered by CSDs today Consistent CSD service levels across all markets with “local look and feel” -6-
Link Up Markets - benefits for the market Link Up Markets - benefits for the market Benefits for market � Streamline market access through single window � Reduce complexity of cross-border business � Harmonise processes across markets � Leverage existing local efficient CSD infrastructure � Minimise adaptations to infrastructure developments � � Increase trading activities driven by market integration � Benefit as of 1st half 2009 Potential to reduce existing cross-border settlement costs by up to 80 % -7-
Link-Up Capital Markets S.L. Madrid Link-Up Capital Markets S.L. Madrid Managing Director Tomas Kindler Jeffrey Tessler - Chairman of Link-Up Capital Markets S.L. Board of Directors (Chairman Clearstream Banking AG Frankfurt) (designated) Jesús Benito (CEO Iberclear) Spyros Capralos (CEO Hellenic Exchanges S.A.) Jan Hellstrøm (President and CEO VPS) Socrates Lazaridis (General Director Hellenic Exchanges S.A.) Johannes Luef (CEO VP Securities Services) José Massa (Chairman Iberclear) Werner Merki (Member of Executive Committee SIS SegaInterSettle AG) Robert Rickenbacher (CEO SIS SegaInterSettle AG) Andreas Wolf (CEO Clearstream Banking AG Frankfurt) -8-
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