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Regional cooperation in implementation of innovative CSD solutions, ESTONIAN CSD / October 2011

BASIC FACTS / ESTONIAN ECONOMY

ESTONIA / TALLINNPopulation: 1.35 millionLanguage: EstonianCurrency: EUR (from Jan. 2011)

BALTIC FACTS•Population – 7 million (Estonia, Latvia, Lithuania) •Latvian & Lithuanian currencies are pegged to the euro.•Estonia joined the Euro area on January 1, 2011. •Euro introduction expected in Latvia and Lithuania within 3-5 years.

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ESTONIA

Moody’s: A1, from negative to Stable

Standard & Poor’s: long-term foreign and local currency sovereign credit ratings raised to AA-

Short-term local and foreign currency sovereign credit ratings were raised from A-2 to A-1

WHO WE ARE

NASDAQ OMX Tallinn has extensive pension scheme, registry services, clearing & settlement expertise.

Versatile experience in post-trade area allows us to offer extensive know-how in the field. Being part of the NASDAQ OMX group we have been involved in every aspect of building the Baltic capital market from the ground up.

Our recent developments greatly contribute to our continuing strive for excellence on the region’s securities markets as well as taking the securities infrastructure to a new level in terms of both daily services offered and further integration perspectives.

New depository

systemDepend

First European depository

using

ISO 20022standard

Active cross-border linkswith other Baltic

CSD’s and Polish CSD

Private personsFunded pensionunits registry

Standard interfaceMessageHub

for accessing the CSD services

Registryof securities of public

and private companies

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CHANGES IN THE LANDSCAPEBALTIC MARKETS

Baltic approach – cooperation and harmonization

• Simplified cross-border investments in the Baltic region

• Trading via single entry point – the next generation INET trading platform

• Harmonized link solution between all Baltic CSDs

Tremendous rise in volumes and demand for new services

New initiatives in the market

• Harmonization of standards

• Target2-Securities

• EU regulation for CSDs

EURO introduction in Estonia from the 1st January 2011

ROADMAP TO THE NEW CSD SOLUTION

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Clearing and settlement•Autonomous central bank money•Settlement streams•Matching standards•Tolerance amounts•Other features (hold/release, linking/grouping, priorities etc.)

Registry business•Flexible account structure•Third-party rights and restrictions•Flexible corporate actions

Single standardized entry point to all CSD services

SWIFT integration

Newest standard of messaging – ISO20022

Easily extendable to cover other services

CORE CSD PLATFORM (DEPEND) MESSAGING PLATFORM (MESSAGEHUB)

Project initiated:

Estonian CSD services live:

2007

January 2011

Project initiated:

Fund and Pension services live:

Estonian CSD services live:

Latvian CSD services live:

2008

June 2010

January 2011

April 2011

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BENEFITS AND FUTUREBenefits from recent changes

• Compliance with the newest standards

• Improved system management and connectivity

• Improved quality of service

• Simplified access to the services of Baltic CSDs

• Smooth introduction of international initiatives such as T2S

Continuing initiatives by Estonian CSD

• Further integration of regional services

• Helping others learn from the experience

- Implementing depository and pension systems

• Offering wider range of services for financial institutions

- Fund administration and portfolio management

/ THANK YOU!

Andres Lips Member of the BoardEstonian CSDandres.lips@nasdaqomx.com

www.nasdaqomxbaltic.comwww.e-register.ee