On Wednesday, 31 October 2007, the management board of the Financial Supervision Authority asked to coordinate amendments to the Tallinn Stock Exchange Rules in the parts “General part,” “Requirements for membership” and “Requirements for Issuers”. Amendments to the aforementioned parts of the Rules and “Specification of trading rules” entered into force as of their publication, i.e. Thursday, 1 November 2007. Amendments to the Tallinn Stock Exchange Rules in the parts “General part” and “Requirements for membership,” and amendments to “Specification of trading rules” are related to the Financial Instruments Market Directive (2004/39/EC) (hereinafter: MiFID) and its implementation provisions. Presented below is a brief overview of the most important reorganisations of the trading regime related to harmonisation with the MiFID: (1) Change in the definition of manual trade - as from 1 November 2007, unlike under the current regime, a member of the Exchange is no longer required to register in the trading system of the Exchange all transactions made involving his/her participation outside the order book. This registration requirement extends only to such a transaction in which a member of the Exchange has accordingly agreed or decided that it will be made pursuant to the regulations established for manual trade transactions by the Exchange. Thus, from 1 November 2007, the members of the Exchange may freely chose (limited by the best execution rules, equal treatment of execution venues and regulations for handling the orders of a client) - whether to perform a transaction necessary for execution of the transaction order within the framework of the trading system of the Exchange and the regulations established by the Exchange (i.e. an exchange transaction which covers trades matched in the order book and manual trades) or to perform the transaction outside the trading system of the Exchange and the trading regulations established by the Exchange. (2) Making the pricing regulations of manual trade transactions more flexible - proceeding from the directly applicable Commission regulation (EC) No 1287/2006 (hereinafter: Implementing Regulation) Article 18 (1) (b) (i), from 1 November 2007 the Exchange will implement a rule which allows manual trades to be performed at or within the current volume weighted spread, unlike the former regime where the interval of allowed price spread was the fluctuation margin (i.e. the difference between the highest purchase order price and the lowest sales order price of a corresponding security). (3) Changing the registration dates of manual trades - in the light of Implementing Regulation Article 29, from 1 November 2007, manual trade transactions must be registered in the trading system at the latest within 3 minutes (instead of 5 minutes as applicable until then) to ensure post-trade transparency. Exemptions, which mainly concern transactions made outside the trading period, shall be provided in the specification of trading rules based on the directly applicable requirements of the Implementing Regulation. (4) Revocation of the minimum threshold institution - for the reason that the restriction on free choice of an execution venue arising from this institution is in conflict with MiFID, from 1 November 2007 the rule which obliged members of the Exchange to perform mutual transactions equal to or lower than a certain volume only through the order book will be revoked. (5) Implementation of technical trading parameters and criteria arising from the implementing regulation - the Implementing Regulation regulates directly applicable technical trading aspects, which were subject to the discretion of the Exchange until now. For example, from 1 November 2007 upon implementation of the block trade threshold (i.e. transactions large in scale) it is necessary to proceed from table 2 of Annex II of the Implementing Regulation, and the calculations and forecasts published by the supervisory agencies. Similarly, based on the criteria directly applicable on the Exchange, it is also necessary to ensure deferred publication of large transactions corresponding to the requirements provided in Article 28 of the Implementing Regulation. Amendments to the Tallinn Stock Exchange Rules in the Part “Requirements for Issuers” are mainly related to the national transposition of the provisions of the Transparency Directive (2004/109/EC) and those are mainly related to the issuer's right to chose any media channel meeting the requirements of the Securities Market Act for disclosing the information to the public of the European Union. As a result of the amendments, the issuer no longer needs to disclose at first a stock exchange announcement on substantial information, but the issuer is required, at the latest, to do so simultaneously with the disclosure thereof in the said media channels. The amendments to the Tallinn Stock Exchange Rules are available for examination on the website of Tallinn Stock Exchange: http://www.omxgroup.ee/?id=2726 - valid redactions http://www.omxgroup.ee/?id=2727 - earlier redactions Tallinn Stock Exchange Market Services (+372) 640 8800