PRESENT AND FUTURE OF THE GREEK CAPITAL MARKET

One of the main facts for the years 2004 and 2005 is the project of the new Athens Exchange Regulation

 During 2004, the project of the new Athens Exchange (ATHEX) Regulation was elaborated by a selection of working groups in order to be submitted for approval by the Capital Market Commission. After all, the new ATHEX Regulation, according to article No 3 of the Law 3152/2003 and the Decision No 1/304/10/6/2004 of the Capital Market Commission, was published in the Government Gazette 900B/16.6.2004.
 This Regulation became vigorous in the end of November 2005 and without doubt gives a new impetus in the Athens Stock Exchange. The ATHEX Regulation governs the relationships between the ATHEX and its members, the companies that have listed securities for trading or have submitted an application for the listing of their securities on the ATHEX, as well as any other legal or physical person towards which the Regulation introduces rights and obligations. First modification of the ATHEX Regulation was approved by its Board of Directors on November 25, 2004.
 With a turnover of 37.8 billion euros for the year 2004 and more than 46 billion for the year 2005, the ATHEX is the only official market for shares, rights GDR' s, derivative products and bonds trading in Greece, both for the private and institutional investors. It provides the regulatory framework, for conducting transactions and for the dissemination of information from the listed companies and market participants to the investment public.
 The ATHEX mainly offers the issuer companies the possibility to raise capital and satisfy investors demand for securities. According to Mr. Iakovos Giorganas, president of the Hellenic Exchanges Holdings S.A. (HELEX S.A.), the ATHEX is a joint stock company, owned (100%) by HELEX S.A., a holding company that is controlled by the seven largest Greek banks -namely National Bank of Greece (8.44%), Alpha Bank (6.04%), Agricultural Bank of Greece (7.34%), Commercial Bank of Greece (>5%), EFG Eurobank Ergasias (>5%), Piraeus Bank and Postal Savings Organization (>5%), as well as listed companies, institutional investors, members of the ATHEX and the investment public.
 The role of the HELEX focuses on: market development, increase of liquidity, new products, regulatory framework, development of new products and markets -New Market (NE.HA), EAGAK, Greek Deposit Receipts (ELPIS), Shares of Hellenic Capital Emerging Markets (EKAA) and the shares of the Emerging Market Portfolio Management Companies (EXAA)- international cooperation -the group promotes the cooperation with stock exchanges of S.E. Europe and the Mediterranean Sea area (e.g. Cyprus Stock Exchange).
 The Board of Directors (BoD) of the ATHEX is composed of 7 members appointed for a three-year period. It is responsible for all issues regarding the administration of the stock exchange, the management of its property and the pursuit of its objectives. It represents the stock exchange judicially and extra-judicially and supervises the proper performance of the exchange' s operations. The BoD provides authorization to brokerage firms to trade on the ATHEX, grants them membership to the exchange and monitors the proper applications of the stock market regulation.
The president of the ATHEX is elected by the General Meeting of the shareholders. The president is entitled, inter alia, to impose trading suspensions if investors' interests are at risk, to secure the smooth operation of the market and to grant permission in case of block trades of specific high volumes. On 25/10/2005, the ATHEX Board of Directors elected Mr. Spyros Capralos as chairman and member of the Board.
The Capital Market Commission (CMC) that is an independent decision-making body, in the form of a Public Law Legal Entity operating under the supervision of the Ministry of National Economy. It is established in Athens and the laws 148/67, 1969/91, 2166/93, 2324/95 and 2396/96 regulate its operation. Its main objective is to promote the establishment of sound conditions for the operation of the capital market and to enhance public confidence both in the quality of supervision and market behavior.
In order to achieve this objective, the CMC sets the general terms and conditions governing the organization and operation of the capital market and issues instructions on compliance procedures. It also introduces the measures that are useful for ensuring the proper functioning of the market. The legislative framework of the Greek capital market is fully harmonized with the guidelines and directives of the European Union.
Brokerage firms and credit institutions, which have obtained approval from the BoD of the ATHEX, are allowed to trade in the exchange, according to article No 55 and 56 L.2533/97. All transactions are realized either in cash, or through margin account. Shares-trading is conducted electronically through the Automated Exchange Trading System (OASIS). Trading hours are set between 11.00 and 16.00. From 16.00 to 16.30, the trading "at the close" session takes place. Orders are input to the system by members' exchange representatives.