Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 4

Each market must have clear rules assuring investor protection by safeguarding participants from the financial risks of failed settlement and ensuring that listed companies are required to follow sound policies on corporate governance, transfer of economic benefits and shareholder rights.

1.	Does the depository or the market have securities lending and borrowing schemes in place, and are these open to all market participants and their settlement agents?	Yes.
2.	Does the settlement system mark fail trades to market and collect margin from the failing counterparty to protect the innocent counterpart's interest?	OTC: The CSD settlement system for OTC transactions informs both transaction partners of the failure, automatically debits the failing party with an interest amount and credits this amount to the account of the counterparty. Stock Exchange transactions: OeKB is the Clearing House appointed by the Vienna Stock Exchange and operates the settlement system (netting system), settlement period is T+3, all open net positions are covered by margins (the guarantee fund). In case of settlement failure, OeKB debits the failing party with default interest and credits the account of the respective innocent market participant, accordingly. Additionally, OeKB debits the failing party with a penalty interest and credits this amount to the Republic of Austria (supervision of the securities market). In its function as Clearing House for the Vienna Stock Exchange OeKB carries out a buy in procedure as of settlement day plus 2.
3.	Does the market operate a guarantee fund or have an equivalent procedure to protect against the cost of failed transactions; and which sectors of the market does it cover?	See item 2.
4.	Are the stock transfer agents (share registrars) linked electronically to the depository?	Not applicable -> Traded securities are bearer shares/bonds in Austria.
5.	Is there a legal maximum time period to complete ownership transfers in the books of the issuer? If so, does market practice adhere to the deadline?	Ownership transfer is completed by book-entry on the securities account -> bearer securities, see item 4.
6.	Are investors entitled to all benefits arising on a security from the point of purchase; and how are any rules enforced?	Yes, investors are entitled -> calculation of accrued interest and claiming procedure for domestic transactions: Bonds: Accrued interest is automatically calculated by the settlement system. Shares: Automatic compensation within settlement system. Corporate actions (rights, splits,...): No automatic enforcement by settlement system (compensation is up to the parties).
7.	Is proxy voting permissible in the market and can such proxies be lodged by post or other remote delivery method?	Proxy voting is possible. It is offered by the CSD and domestic banks. Proxies can be lodged by post or other communication method, as agreed.
8.	Are there binding rules in the market stating the minimum and maximum lapsed time between the announcement and completion of key events, including registration, the calling of shareholder meetings, the payment of dividends or interest, rights issues, tender offers and other voluntary corporate actions?	There is a minimum time between the announcement of a shareholder meeting and its taking place.
9.	Are all voluntary corporate actions advised through a central mechanism assuring consistent information to all investors?	Yes, information on all corporate actions is available to all investors in the official gazette "Amtsblatt zur Wiener Zeitung". The account holders in the CSD are advised by the CSD's own data base via its notification system CUNO (Custody Notification).
10.	Is information on corporate actions available electronically, and is the minimum lapsed time for responding to such actions sufficient to enable all domestic and foreign investors to respond in a timely and considered fashion?	CUNO (see item 4, above) is an electronic system. The minimum time lapsed for responding to corporate actions is always sufficient to enable all investors to respond in a timely and considered fashion.