Expectations from Regional Cooperation

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Expectations from Regional Cooperation
CONFERENCE on The Prospects for Capital Markets
in Southeast Europe

• Spyros Capralos
• Chairman of Athens Exchange
• President of F.E.S.E.

Sheraton Hotel, Sofia, Bulgaria 16 September 2008
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Significant changes in Exchanges business

• Prospects for SEE exchanges
• in view of the current financial crisis which
• is more severe
• will last longer than originally thought
• is affecting the world economy
• which for exchanges has
• ? reduced turnover and income
• ? slowed down the consolidation process

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Regulatory liberalization

• Regulatory liberalization
• Trading MiFiD
• Post-trading Code of Conduct

Increased competition!!
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Increasing competition

• Trading Competition from
• Other established exchanges
• Multilateral Trading facilities (MTFs)Turquoise,
  Chi-X et al.
• Brokers (internalization)
• Post-trading established CSDs getting ready
• LinkUpMarkets
• Euroclear Group
• ECB initiative Target 2 Securities

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Unprecedented global MA activity
Qatar Investment Authority
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The realities

• Liberalized regulatory Framework
• MiFID
• Code of Conduct
• Increased Competition

How can regional exchanges respond?
?

• Organic growth ? Not a feasible option!
• Collaboration ? The only solution!

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M
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Solutions to form regional partnerships
Proposed solutions are independent complementary
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Largest IPOs in Europe - 2007
Data source PWC
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Necessity of collaboration
Proposed solutions are independent complementary
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Expectations from Regional Cooperation
CONFERENCE on The Prospects for Capital Markets
in Southeast Europe

• Spyros Capralos
• Chairman of Athens Exchange
• President of F.E.S.E.

Sheraton Hotel, Sofia, Bulgaria 16 September 2008