• First, to secure sufficient market depth.
• Second, to assimilate with the markets of the EU and participate equally in the formation of a unified European Capital market.

II. VISION FOR THE ATHENS STOCK EXCHANGE
A powerful, secure and reliable Stock Exchange.

III. PLAN OF ACTION TO IMPRPOVE MARKET EFFICIENCY
1. Further rationalization of the Hellenic Exchanges Group (HELEX).

• HELEX emerges as the strategic headquarters of the whole group, formulating the overall strategy and supervising its implementation over time. ·
• A new structure will be implemented in ASE via the creation of a new business development sector. Furthermore, various activities will be focused on marketing and sales promotion, as well as on communication, public relations, international co-operations and information dissemination. ·
• The Athens Derivatives Exchange (ADEX) and the Athens Stock Exchange (ASE) to merge, following the European markets practice, achieving significant economies of scale. In the mean time ADEX shareholders through the merger become HELEX shareholders ·
• Transformation of the Athens Derivatives Exchange Clearing House SA (ADECH) into the only clearing house of the stocks and derivatives markets (ASE & ADEX), following the current European markets practice. The new body undertakes all members` counter party risk and performs unified settlement (netting). It is also expected to achieve more efficient risk management and to facilitate the cooperation with foreign clearinghouses. A single clearing body contributes to cost of capital reduction and increase of liquidity. The Athens Derivatives Exchange Clearing House SA to acquire banking status. · The Central Securities Depository (CSD) reinforces its position as the administrator of the Dematerialised Securities System of the Greek Capital Markets. CSD could become a Hellenic Exchanges Holdings (HELEX) affiliate. ·
• Thessalonica Stock Exchange Centre SA upgrading through further staffing, completion of the electronic interconnection among brokerage firms at their offices, activation and promotion of its activities of the Greek Market of Emerging Capital Markets (EAGAK). ·
• ASYK`s (Systems Development and Support House of The Capital Markets SA) upgrading so as to develop electronic solutions to the Capital Markets as well as to play a significant role as a project manager in the Balkans and Eastern Mediterranean Area.
• The Trading Centre of The Athens Stock Exchange continues with its educational role, broadening its orientation to investors and financial factors/executives.

2. Further Athens Stock Exchange Institutional Modernization.
The integration of ASE`s operational framework through the creation of a Rule Book (complete code of rules concerning its operation), which will create contractual obligations and restrictions to its members and listed companies. Transferring of managerial authorities to the Capital market Commission, in order to achieve a more effective ASE operation, promote co-operation with other markets, form flexible operational terms and directly respond to capital markets needs as these are shaped in practice.

3. Activation and Promotion of new markets and products.
New Stock Exchange Market (NEXA), Greek Market of Emerging Capital Markets (EAGAK), Greek Depository Certificates (ELPIS), Greek Emerging Market Funds (EKAA), Emerging Markets Investment Closed End Funds (EXAA), secondary listings.

4. Introduction of new indices, national and regional.

5. Expansion of the compatibility of the existing electronic systems.
Development of a proper electronic infrastructure for a unified access (a single screen) of all ADEX and ASE members as well as of potential European members. Electronic connection of ASE and CDS for more secure communication.

6. Euro.
In time preparation for the Greek securities market to operate properly in the context of Euro as of 01.01.2001.

7. Emphasis on developing ASE''s activities
The ASE is planning to undertake initiatives to develop its activities following the example of the EU exchanges:

• marketing plan in Greece and abroad, road shows, direct contacts, events, advertising, electronic information diffusion, conferences. ·
• Promotion of the stock and derivative exchange concept as well as the financial education to Greek investors. Establish a 10 to15 ''''specialists'''' help-desk unit (people that will offer free useful information about ASE operation, via e-mail telephone, fax, and printed material) ·
• Conduct of free short-term seminars all over Greece. ·
• Focussing on further financial education of ASE members` executives. ·
• Sales promotion. Expand ASE membership and develop an electronic access network to the ASE.

8. Support institutional reforms necessary to improve ASE`s operational framework.
Among others, advance issues such as, margin accounts, securities borrowing/lending, market making, gradual deregulation of free price fluctuation of shares, extension of trading hours. Adoption of International Accounting Standards is also an issue of great importance. Furthermore, Offering Memorandums`(prospectuses`) restructuring is under way, so as to avoid misunderstandings observed in the past, enable easier auditing and provide better information to the investment public.

9. International Co-operations
Co operations-alliances with EU exchanges and promotion of cooperation among the markets of Southeastern Europe and Eastern Mediterranean.

10. Athens Derivatives Stock Exchange
Advancement of ADEX`s development program. Introduction of securities lending (August 2000), introduction of stock indices options (September- October 2000) and stock options (January 2001).

11. Actions Coordination and Cooperation
To achieve the above objectives it is necessary to coordinate the actions among all market participants, such as member firms, listed companies, underwriters, institutional investors and the authorities. A competitive market requires the efficient operation of all its participants. The Athens Stock Exchange will undertake the necessary actions to ensure achievement of this coordination and cooperation.

12. Capital Market Research Center
Creation of a reliable entity for the scientific analysis and documentation of the securities Market.

13. Cooperation with mass media professionals for the development of the deontology code related to the information of the public on stock exchange subjects.

14. Listing of new shares on the ASE.
i. New companies (IPOs).

Acceleration of the listing of new companies with parallel upgrading of the underwriter''s role. Applications will be categorized accordingly, so that the attempted acceleration will be combined with the enrichment of the market with dynamic and attractive companies. The first category will consist of companies, whose equity capital increase, has already been subscribed by the underwriters by the time their applications are evaluated. Other categories will include companies of the new economy (software development, telecommunications, mass media), of the financial sector (banks, portfolio investment companies, leasing companies, insurance companies), of public sector companies to be privatized and new sectors (for example international shipping). Another category will be created for the Thracian and Eastern Aegean companies. At the same time, in order to ensure market transparency, a table containing pending applications of companies to be listed, will be published at regular intervals.

ii. Equity capital increases of listed companies.

• They represent the major part of raised capital, and thus justify additional measures to be taken in order to improve public information and smooth incorporation of the new shares in the market, without creating obstacles to the progress of business plans. As a result:
• Companies are required to compile an Offering Memorandum (prospectus) with an advisor for the issue (article 3a Presidential Decree 350/85).
• The members of the Board of Directors of the company, who have significant ownership percentages, have declare when the decision for the capital increase is made their intentions concerning their participation in the specific capital increase. More specifically, they will declare their equity stake in the company''s share capital after the share capital increase has been concluded.
• The period for trading and exercising stock rights shortens from 30 to 15 days.
• The shares resulting from the capital increase will not be listed and negotiable before the passage of one year in the cases where the proceeds from such capital increase exceed 100% of the company''s shareholders equity or where the time period from the previous share capital increase of the company is less than one year.

15. Underwriters'' issues.
The book building procedure is adopted for every underwriting. This facilitates the more effective valuation of the issuing prices of new listings. Other means and measures have to be examined in order to improve the valuation of the issuing prices and the pertinent information provided to the investment public. Such measures include:

• The restoration of the six-month period of supporting the issue price.
• The publication of the market sector P/Es in order to compare them to the P/Es of the companies under listing.
• The standardization of the calculation methodology of the P/Es ratio.

16. Main shareholders of listed companies.
Every listed company has to offer information regarding the evolution of the participation in its equity capital of the basic shareholders.

17.Use of raised Capital.
Every listed company has to offer information regarding the use of capital raised.

18. Fluctuation of subscription rights.
Deregulation of the fluctuation of stock rights to improve the efficiency of the operation of the stock rights market. . Incorporation of their clearing procedure in the electronic dematerialized securities system.

19. Purchase of treasury shares.
Facilitation of treasury shares purchase by listed companies by relaxing the relevant requirements.

20. Auction trading.
Introduction of auction trading for low liquidity stocks.

21. On line information.
The development of the technical environment for the distribution of on line - real time information on daily sessions, from the ASE to the Capital Markets Commission in order to support the latter''s supervisory role.

22. Facilitation of Internal Audit for ASE Members.
Installation in every member, at ASE''s own expenses, of a view-only terminal in order to monitor all of its orders and tradings and thus, facilitate internal audit.

23. Market information.
Dissemination of information to the market through statistical data such as number of transactions/transacting parties, which defines the market price.

24. Abolition of ASE`s trading floor.
Trading will be conducted from the members'' offices.

25. Upgrading of communication with listed companies and mass media.
Development of the telecommunication network, which will connect ASE and CDS with listed companies and will enable the automation and standardization of the necessary communication between capital markets participants and listed companies, so as to:

• Simplify for listed companies the procedures they are required observe to fulfill their obligations.
• Increase the speed of dissemination of credible information from the ASE regarding corporate news. ASE will operate as a hub of communication towards the mass media by transmitting all the relevant information, simultaneously.
• Upgrade the credibility of the Greek market abroad, by providing equal access to corporate information.
• Improve the productivity of the services of the ASE.