5. REPORT OF THE MANAGING BOARD FOR THE YEAR 2003 5.4. RISK MANAGEMENT 5.4.4. Legal and regulatory risks Legal proceedings Via Net.Works - Euronext Amsterdam Following the initial public offering of Via Net.Works on Euronext Amsterdam and Nasdaq on 11st February 2000, Euronext Amsterdam was criticised by the media for allowing trading in shares of Via Net.Works to start before trading started on Nasdaq. Prior to the start of trading of these shares on Nasdaq, trading on Euronext Amsterdam opened and closed at a price of €89 per share. After the close of trading on the Amsterdam market, trading on Nasdaq opened at a price of U.S.$41 per share. At the start of the next trading day, the Via Net.Works price on the Amsterdam market dropped to €50 per share. The STE (now the AFM - the Netherlands Authority for Financial Markets) conducted an inquiry into the listing of Via Net.Works. In 2002, the AFM notified Euronext Amsterdam that it had decided not to fine or sanction the company in connection with this initial public offering. This decision is final. Directly following this initial public offering, legal proceedings were instituted against the Amsterdam market by a private investor and the "Via Net.works Foundation", claiming to represent approximately 600 investors and currently claiming compensation in respect of trading losses of approximately €11 million. The company is strongly defending itself against these claims. Both cases are pending at the district court of Amsterdam. The private investor claim (€250,000) is awaiting judgment, but no date has yet been set for the main court hearing in relation to the Foundation. There is no major deviation from the position of litigation since 31st December 2002. The Group has no knowledge of any other litigation that could impact significantly its financial position, its assets, its cash-flows or its results. Regulatory risks Euronext operates in a highly regulated sector, which is governed by a large number of laws. All Euronext rules must be approved by the relevant authorities of each country in which Euronext operates as well as by the coordinating bodies set up by the regulators' memoranda of understanding. This may slow the integration process if certain rules are not approved by all the regulators or require some time for approval. Moreover, the decisions taken by the coordinated bodies are not binding to each of the national regulators separately, who need to approve them ultimately at national level and may come back on discussions or modifications validated at coordinated level. Furthermore, as Euronext operates in a highly regulated sector, it is exposed to the risk of changes in regulations in each of the countries in which it operates. Notwithstanding the procedures established pursuant to the regulators' memoranda of understanding, Euronext can offer no assurances that these regulations will necessarily evolve towards a greater degree of harmonisation between jurisdictions. Finally, Euronext has to cope with demands from regulators to, amongst other things, update its technical systems to enhance their monitoring capabilities. These developments can be costly and time-consuming (i.e. performed concurrently to harmonisation efforts).