Central Securities Depository Prague opens for business

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7/6/2010

The Central Securities Depository Prague (CSD Prague) today successfully completed the transfer of the records of dematerialized and immobilized securities from the Czech Securities Centre (Středisko cenných papírů, SCP). This marked the last step towards the commencement of the activities of the Central Depository, which will open for business on 7 July 2010.

Preparations for the launch of the Central Securities Depository started immediately after a licence was granted on 14 August 2009 by the Czech National Bank to UNIVYC, a.s., a subsidiary of the Prague Stock Exchange (member of CEE Stock Exchange Group). In December 2009, an agreement was signed between the Central Securities Depository and the Ministry of Finance for the transfer of the records of securities maintained in the Czech Securities Centre. This was the beginning of the technical preparations of the trading members and other parties which have become participants in the Central Depository. "Thanks to the professional attitude and 100% commitment of all the parties involved, both on the side of the Central Securities Depository and on the side of the future participants, it was possible to meet the original deadline for the commencement of activities, i.e. mid-2010,” says Helena Čacká, Chief Executive Officer of Centrální depozitář cenných papírů, a.s.

The Central Depository introduces a series of innovations to the Czech capital market. The main change is that the Central Depository is now capable of maintaining multi-stage recording of investment instruments, thus enabling a standardized trade settlement to be introduced, something which has become widespread in other European countries. Account owners will also appreciate the better availability of services associated with the operation of their accounts. These services will now be offered directly by the participants in the Central Securities Depository, through their branch networks.

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