ROLE OF CSDs IN POLITICAL DISTURBANCES

1. ROLE OF CSDs INPOLITICAL DISTURBANCES

2. INTRODUCTION • December 17, 2010 : Start of the revolution’s first spark by the immolation of the young Mohamed Bouazizi. • December 19, 2010 : Protests were triggered in the south-west. • Continuing protests throughout the country until the escape of fallen president in January 14, 2011. 2

3. Functioning of the Financial Market from 17/12/2010 to 14/01/2011 • The Tunisian financial market continued operating normally without any disruption during the period from December 17, 2010 to January 14, 2011. • The stock index was fluctuating upward and downward during this period with important volumes of transactions. 3

4. Functioning of STICODEVAM from 17/12/2010 to 14/01/2011 • After the attack on the Government website, a follow-up unit was introduced by the end of December 2010 including the management and the technical departments to ensure the continuity of STICODEVAM’s services during this period, • The following measures were taken: • An attack test was carried out on the web server hosted at the access provider by a company specialized in auditing IS in order to ensure that the website is protected from any attack; • In addition to backing up data on magnetic tapes, a critical data backup was performed on other magnetic supports deposited in both bank’s vault and backup site; • A general backup of the users data. 4

5. Functioning of STICODEVAM during thecritical days (1) • Settlement of trades and instructions under normal conditions without any restrictions. • Since 12/01/2011 and because of the curfew, the closing of the settlement day was at 3:00 pm instead of 5:00 pm; • On January 14, 2011 there was a high level absenteeism of the member’s staff, therefore, many DVP instructions to be settled on 17/01/2011 were not confirmed. Despite this, it was decided to open the first session of the settlement day of 17/01/2011. 5

6. Functioning of STICODEVAM during thecritical days (2) • On January 17, 2011 and despite 70% absenteeism in both STICODEVAM’s and members’ staff and the circumstances facing the country, instructions were confirmed and transmitted by members and the settlement occurred ; • Cash clearing at the central bank was achieved with 2 hours late. 6

7. Decisions taken during the disturbances • From 17/01/2011 to 31/01/2011 : suspension of stock exchange trading mutual fund operations. • 17/02/2011 : establishment of a new account type "frozen securities", to lodge securities owned by the president family. 7

8. Decisions taken during the disturbances • At trade resumption, the stock exchange applied some restrictions: • Only orders under allowed thresholds are accepted by the trading system. • Orders entered are one "day" validity. • OTC trades are not accepted. 8

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10. Conclusion • During the disturbances period, it turned out that trades confirmations at T+2 is too long ; • Many foreign investors were worried and wanted to be sure that the settlement of transactions occures normally ; • The role of CSD is important in ensuring the activity’s continuity during political disturbances. 10

11. THANK YOU 11