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?	Local CSD - APK - is fully owned by HEX Plc, the holding company behind the Helsinki Exchanges. As at August 24, 2001, the HEX Plc. was owned about 150 shareholders of which OM Gruppen (15,6 %), Sampo (12,1 %), Merita Bank plc (11,2 %), OKO Group (8,9 %), Bank of Finland (7 %) and the State of Finland are among the most important. Owners of HEX Plc represent all user groups of HEX Group.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	See above.
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	No.
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)?	In accordance with APK rules, section 1.4.2 and section 1.4.3: "1.4.2 Any amendments to these Rules shall, to the extent decided on by APK, be prepared in co-operation with the count operator, clearing parties and the issuers. The responsibility for the preparation shall be borne by APK" "1.4.3 Before the Board of Directors of APK may handle an amendment, all the parties whom the amendment may concern shall be reserved the possibility to express an opinion on the amendment. Without prejudice to this, an opinion may be requested from an organisation representing the issuers instead of requesting an opinion separately from each issuer. A period of at least two calendar weeks shall be reserved for the giving of the opinion as of the date when APK forwarded the amendment for an opinion."
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	APK has several different user groups. User groups are open to all market participants. User groups are both functional and technical. Market practice is discussed in functional user groups and technical issues in technical user groups as well as timetable for technical changes.