According to current regulations, Act CXX of 2001 on the Capital Market (hereinafter: CMA) contains rules for the trading of securities, investment services and investment service providers, commodity exchange service providers, investment managers, investment trusts, the Exchange, the operation of the clearing house and state supervision of all these. The CMA has been modified repeatedly since it entered into force on 1 January 2002. The most significant modifications in 2003 were those which came into effect on 1 January and 1 July. These modifications contained a number of regulations that had been due to come into force on the day the law announcing the international treaty regarding EU admission came into force. The modification of 1 January 2003 brought several smaller, but in the life of the capital market operators, significant and often technical changes, while the modification of 1 July both incorporated the hitherto missing integrated supervision of investment ventures into the regulations and ensured the harmonisation of two new EU directives by the modification of the chapter on investment trusts. In 2006 and 2007, a number of EU directives were adopted by the amendment of the CMA (and credit market laws, Hpt.). These are the EU directives about acquisition (EC 25/2004) and investment recommendations (EC 125/2003), which implemented modifications concerning acquisitions, investment recommendations and venture funds effective as of 20 May 2006; in addition, the EC 48/2006 directive about the commencement and pursuit of the business of credit institutions and EC 49/2006 on the capital adequacy of investment firms and credit institutions, which aim to adopt European capital adequacy laws for credit institutions and investment ventures in order to accomplish harmonisation. Important modifications can be observed in the regulations on property funds as a result of mounting interest in them.

It can be noted that, due to EU harmonisation, in particular, the implementation of the EC 39/2004 "MiFID" directive, the CMA will again be significantly modified on 1 November 2007. This modification will primarily affect the investment and commodity exchange service providers inasmuch as regulations about their activities will be contained in a new law, on the investment ventures, commodity exchange service providers and their activities ("Bvtv.”). Bvtv. will contain regulations for the licensing of the activities of investment ventures and commodity exchange service providers on the personal, real value, technical and risk management conditions of their activities as well as the specifications related to operation supervision. Therefore, the capital market law is to remain effective, but the investment service providing investment venture activities, the supplemental services of investment service providers, the financial assets, the commodity exchange providers and their activities will no longer be regulated by this law.

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