Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 1

Securities Systems* have a primary responsibility to their users** and other stakeholders. They must provide effective low cost processing. Services should be priced equitably.

* Securities Systems = depositories, settlement and clearing systems
** Users = customers of the securities system, and all other parties to whom the securities system owes a duty of care

1.	Is the board that governs the depository answerable to its users?	Yes, The shares in VP are distributed to the users, who own the VP. All categories of owners are represented in the board. The directors are appointed by the shareholders they represent and are elected by the AGM.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	The shares in VP are distributed into categories of owners as follows: 43% Commercial banks and brokers 28% Mortgage banks 13% Central bank 8% Corporate issuers 8% Institutional investors
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	No, all customers and all products are supposed to make a profit for VP. Exceptions may be initial build-up of new services, where start-up investment cost may include initial operation losses while volumes are built up. The Danish market is very efficient and with very low cost for the VP customers.
4.	What process is in place at the depository to ensure that it meets the needs of all its stakeholders (e.g. institutions, broker dealers, retail investors, issuers)?	The board of directors includes all groups of shareholders.
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	Shareholders meeting Board of directors meetings A Customers forum representing all major user groups - 4 annual meetings Annual report to stakeholders Close contact to all major stakeholders Web-site Guidelines and references Operations and corporate action bulletins containing operational information are issued through the direct communication lines.