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WHAT MiFID MEANS FOR
LJUBLJANA STOCK
EXCHANGE?
Jana Morela LL.M
Management Board Adviser
Ljubljana Stock Exchange
June 2007
LJSE today - in numbers
 Market capitalisation of shares (31th May 2007):

16.0 billion EUR
 Average daily turnover with shares in Jan - May 2007:
819,7 transactions, 6,6 million EUR in shares
 Official market ratios (as of 31th May 2007):
 P/E: 27,5
 P/B: 2,57
 Div. yield: 0,99%
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LJSE today - Market Structure
OFFICIAL
MARKET
SEMI-OFFICIAL
MARKET
PRIME MARKET
SHARES
SHARES
SHARES
BONDS
BONDS
INVESTMENT
FUNDS
INVESTMENT
BONDS
FUNDS
SHORT-TERM
SECURITIES
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CHANGING LANDSCAPE ON FINANCIAL
MARKETS
 New fragmentation and increased
competition
 Between exchanges
 Exchanges, ATS, MTF’s
 Members against exchanges
 Disconnecting listing and trading services
 Transparency
 Full disclosure of market data
 Full disclosure of regulated information
 Higher standards for transparency of issuers
 Regulatory barriers
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CHANGING LANDSCAPE ON
FINANCIAL MARKETS
 Price discovery
 Pre and post trade transparency
 Best execution rule implemented on the side of the
member
 Internalization / concentration
 Changing nature and role of regulators
 Supervision and micro regulation
 Providing services to all exchanges and markets
 Driver of success or failure for national markets?
 Explicit and implicit cost of regulation
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EXPECTATION FROM THE STOCK
EXCHANGE
 Members




More, better and diverse products
Better liquidity
Competitive pricing of services
Price discovery
 Issuers
 Access to new investors
 Improved investor relations
 Maintaining relative importance and visibility
 Investors




More, better and diverse products
Better liquidity
Competitive pricing of services
Membership structure
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EXPECTATION FROM THE STOCK
EXCHANGE
 Shareholders of exchange
 Value of shares
 Long term competitiveness
 Efficiency of operations
 Regulator / Government





Regulatory compliance
Surveillance of markets
Efficient price discovery
Stability of operations
Efficient services
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POTENTIAL REASONS TO MAINTAIN
A LOCAL STOCK EXCHANGE
 Domestic market is the ˝natural place˝ for
most firms, but global ones
 Flexibility to meet the needs of local firms
and investors
 Low cost trading systems are available now
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TWO STEPS TO ACHIEVE GOALS:
2005-2006: (by ourselfs)
• Stronger role of the LJSE in the national
economy
• From quantity to quality
• New products and services
• Demutualization
2007-2009: (with partners)
• International competitiveness and full
integration into EU capital markets with
introduction of MiFID and EURO
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PRIORITY PROJECTS for 2007-2009
 Improved quality of the products and services:
 Liquidity providers,
 Automatic order routing,
 Road shows, reporting and CG.
 Projects to secure the central position of the LJSE on the domestic
market in the post MiFID environment
 LJSE as the prime venue for publishing information by issuers in
Slovenia.
 LJSE as the central storage of Regulated Information in Slovenia.
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PRIORITY PROJECTS for 2007-2009
 LJSE as the main provider of Market Data and Regulated
Information from Slovenia.
 Complete the range of products traded on the LJSE:
 Alternative market for shares (MTF).
 Full integration of the LJSE in the EU market place:
 Remote members, foreign vendors, foreign investors, new
indices,
 Harmonization of Rules for listing, trading and reporting,
 Competitive clearing and settlement of cross border trading,
 New Europe as an investment destination.
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THANK YOU FOR YOUR
ATTENTION.
http://www.ljse.si
Jana Morela,LL.M.
Management Board Adviser Ljubljana Stock
Exchange
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