HELLENIC CAPITAL MARKET COMMISSION ANNUAL REPORT 2011 ATHENS 2012 TABLE OF CONTENTS A NOTE FROM THE CHAIRMAN ........................................................................................................................................ 6 PART ONE. THE HELLENIC CAPITAL MARKET COMMISSION ............................................................................................. 8 OBJECTIVES AND TASKS ....................................................................................................................................................... 8 BOARD OF DIRECTORS ......................................................................................................................................................... 8 EXECUTIVE COMMITTEE ...................................................................................................................................................... 9 ORGANIZATIONAL STRUCTURE ........................................................................................................................................... 9 PART TWO. MARKET DEVELOPMENTS ........................................................................................................................... 11 MACROECONOMIC DEVELOPMENTS ................................................................................................................................ 11 The Hellenic economy ................................................................................................................................................... 11 The International Economy ........................................................................................................................................... 14 Parameters of the global economy's exit from the crisis .............................................................................................. 16 GENERAL OVERVIEW OF THE CAPITAL MARKET ................................................................................................................ 17 International Capital Markets ....................................................................................................................................... 17 Hellenic fiscal crisis and the fiscal adjustment program ............................................................................................... 23 The Hellenic Capital market .......................................................................................................................................... 27 The Institutional Framework and Supervision of the Capital Market ........................................................................... 33 International activities of the HCMC ............................................................................................................................. 34 THE EVOLUTION OF THE HELLENIC CAPITAL MARKET ....................................................................................................... 35 The stock market ........................................................................................................................................................... 35 The General Index of the Athens Stock Exchange ........................................................................................................................ 35 Stock Exchange Indices ................................................................................................................................................................. 36 Transaction Value ......................................................................................................................................................................... 37 Market Capitalization of Listed Companies .................................................................................................................................. 38 Net profits and Dividends of listed Companies ............................................................................................................................ 40 The Fixed-Income Securities Market ............................................................................................................................. 40 The Derivatives Market ................................................................................................................................................. 41 CORPORATE SECURITY ISSUES ........................................................................................................................................... 43 Issues of shares and convertible bonds through public offerings.................................................................................. 43 Issues of bonds .............................................................................................................................................................. 46 Corporate restructuring in the capital market .............................................................................................................. 46 PART THREE. CAPITAL MARKET INTERMEDIARIES .......................................................................................................... 49 INVESTMENT FIRMS .......................................................................................................................................................... 49 General Overview .......................................................................................................................................................... 49 Trading activity ............................................................................................................................................................. 49 Provision of credit by Investment Firms-ATHEX members ............................................................................................ 50 COLLECTIVE INVESTMENT MANAGEMENT FIRMS ............................................................................................................. 51 Developments in the Hellenic mutual fund market ....................................................................................................... 51 Developments in the European fund market ................................................................................................................ 54 Developments in the Portfolio and Real Estate Investment Company sector ............................................................... 55 CLEARING AND SETTLEMENT OF TRANSACTIONS ............................................................................................................. 56 PART FOUR. ACTIVITIES OF THE CAPITAL MARKET COMMISSION .................................................................................. 58 RULES AND REGULATIONS ................................................................................................................................................ 58 Quality of services and investor protection enhancement ............................................................................................ 58 Enhancement of transparency ...................................................................................................................................... 58 Improvement of company solvency, transaction security and infrastructure efficiency ............................................... 59 Page 2 of 111 LICENSING ......................................................................................................................................................................... 59 Investment Firms ........................................................................................................................................................... 59 Financial Intermediation Firms ..................................................................................................................................... 60 Mutual Fund Management Firms ................................................................................................................................. 60 Portfolio Investment Companies ................................................................................................................................... 60 Real Estate Investment Companies ............................................................................................................................... 60 Foreign UCITS ................................................................................................................................................................ 60 Approval of Prospectuses for the listing of securities in regulated markets ................................................................. 61 Listing by public offering ............................................................................................................................................................... 61 Listing of securities without public offering ................................................................................................................................. 61 Listing of securities through public offering without listing . ........................................................................................................ 61 Corporate transactions of listed companies (article 4, Law 3401/2005) ...................................................................................... 61 The auction of listed company shares ..........................................................................................................................