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?	The board does not answer to its users directly since its main sharesholders are Euroclear and Euronext Amsterdam. Both Euroclear and Euronext Amsterdam are owned by financial institutions which are also the users of the Necigef system. Indirectly it is answerable to its users.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	Yes, based on the fact that all Necigef shares at this moment are owned by Euronext Amsterdam Clearing & Depository N.V., which is a wholly owned subsidiary of Euronext Amsterdam N.V. According to a Memorandum of Understanding of 31 May 2001 between Euroclear and Euronext all Necigef shares will be transferred in two steps to Euroclear Plc. in due course.
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	No, CSDs send mutual invoices that are on-charged to the participants.
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)?	There is a Depository Usercouncil and a Commission Clearing & Depository.
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	Necigef announcements and circulars.