15 February 2017

Memorandum of Understanding (MoU)

between the Operator of the Electricity Market S.A. (LAGIE)

and Athens Stock Exchange Group (ATHEXGROUP)

Today, 15^th of February 2015, the Greek "Electricity Market Operator S.A." (LAGIE) and the "Hellenic Exchanges - Athens Stock Exchange Group" (ATHEXGROUP), assigned a Memorandum of Understanding (MoU), in the context of the roles assigned to LAGIE by the L. 4425/2016, with the purpose to join forces in order to produce a business plan concerning the following issues:

1. The  establishment of a new multi-shareholder Clearing House, in which both companies will participate as the initial shareholders, in order to undertake the responsibility of Clearing, Risk Management and Settlement of the Hellenic Energy Market, as a CCP in the context of the L.4425 / 2016.
2. The joint establishment of a new company to support LAGIE as Market Operator, in terms of ICT infrastructures and know-how, in accordance with the L.4425/2016.
3. The ratification of the efficiency, competitiveness and sustainability of the entire proposed operational scheme, to the benefit of the Hellenic Energy Market's stakeholders and energy's consumers.
4. The identification of possible necessary legislative or regulatory changes and the appropriate interventions that could prove expedient in the short or medium term for the increase of market's efficiency.
5. The attainment of synergies and partnerships both with the institutional stakeholders of the Hellenic Market and other participants, such as, indicatively, Power Producers, Suppliers/Traders, Broker-Dealers and Credit Institutions.
6. The undertake of actions and initiatives concerning the Hellenic electricity market's coupling with the other EU markets, in the framework of the European legislation, as well as with neighboring non-EU member countries.
7. The preparation for the provision of similar services to other Energy Market Operators, as well as for the efficient development of other relevant Energy and Environmental Markets and Products.

The Energy Market - Objectives

The current national legislative framework (L. 4001/2011, L. 4336/2015 and L.4425 / 2016) and the provisions of the European Regulations (EU) (713/2009, 714/2009, 715/2009, 1227/2011, 648/2012) and the (EU) Directives (2009/72 and 2009/73) concerning the adaptation of the domestic Electricity Market to the requirements of the "EU Target Model", formulate a stringent time schedule of actions for the integration of each domestic electricity market towards its smooth and efficient adaptation to the Target Model's requirements.

In the above context, the two companies deem that such an agreement shall constitute the basis of a successful and long term cooperation pursuing:

1. the prompt and more effective fulfillment of the obligations of the Electricity Markets Operator, according to L.4425 / 2016, always in the context of servicing  the public interest and the necessary compliance of the Hellenic Electricity Market with the aforementioned EU legislation,
2. the joint exploitation of existing infrastructure and know-how in order the needed services to be provided in a competitive manner,
3. the emergence of the positive results stimulated from the operation of a new regulated and compliant with European standards Market, in the Energy sector, the National Economy and the pursuing cooperations in the broader geographical area.

The Companies

The "Electricity Market Operator S.A." (LAGIE) is a public company staffed by highly specialized executives that operates as:

1. Nominated Electricity Market Operator (NEMO) having assumed, both under the national regulatory framework and the relevant European one, the obligation for the implementation, operation, support and development of the Hellenic Energy Market in the context of European Market integration, while in the context of implementation of the EU Regulation 1227 / 2011 (REMIT) it is certified by ACER as a "Registered Reporting Mechanism" (RRM).
2. Operator for the Issuing and Management of RES Electricity Guarantees and CHP Operator for the Interconnected System, participating in the European Association of Issuing Bodies / AIB) and acting simultaneously as the Fuel Mix Administrator for each Supplier.
3. Auctioneer representing the Greek State for the Greenhouse gas emission rights in the auctions held on the transitional common auction platform of the EEX (Commodity Exchange in Leipzig, Germany).

ATHEX GROUP, consisting of the publicly traded company "Hellenic Exchange-Athens Stock Exchange (ATHEX)", the "Hellenic Central Securities Depository (ATHEXCSD)" and "Transactions Clearing Company (ATHEX Clear)" avails the expertise, infrastructure and appropriate certification regarding the following:

1. the organization and operation of exchange markets,
2. the clearing of transactions both in cash and derivatives products, constituting thus one of the seventeen (17) licensed Central Counter parties in EU, in accordance with the EU Regulation 648/2012 (EMIR), already providing clearing services:
   • for all Athens Exchange (ATHEX) markets - the Cash Market, Derivatives Market and the "Alternative Market - EN.A.",
   • the Derivatives Market of the Romanian Stock Exchange SIBEX
3. the development and operation of a private network for accessing the Hellenic Financial Ecosystem, providing access points to the United Kingdom, Cyprus and Romania (ATHEX Exchange Network)
4. the provision of services in the financial community (Investment firms, Banks) and market operators (Cyprus, Romania) and third parties, in information and communication technologies (ICT), operating and continuously investing in high quality technological infrastructure and services (data centers, applications development, etc.).

Download the Press Release

Highlights from the signing of the Memorandum of Understanding. From the left: President and CEO of LAGIE SA Mr. Michalis Filippou and the Chief Executive Officer of Athens Exchange Group, Mr. Sokratis Lazaridis

The Athens Stock Exchange since its establishment in 1876, consistently participate in the financial and business developments in the country.

Athens Exchange Group (ATHEX Group), provides support to the Greek Capital Market. ATHEX Group operates the organized Equities and Derivatves markets, the alternative market and performs clearing and settlement of trades.

The Athens Stock Exchange, through its markets, offers solutions and financing tools to businesses, expands investor choice by providing a safe, stable and easy environment in full alignment with international practices and the European regulatory framework.

In a period that the role of stock markets in exploring alternative ways of financing business, at a European level, is significantly enhanced, the Athens Exchange Group has taken a series of initiatives to highlight the attractiveness of the Greek Capital Market and the Greek companies to the international investment community and expand the variety of investment opportunities.

Its shares are traded on the Main Market of the Athens Exchange (Symbol: EXAE).

The profiles of the ATHEX Group and its markets can be downloaded from the link. More information can be found in the website www.athexgroup.gr.