STOCKHOLM, Sweden, May 12, 2003 (PRIMEZONE) -- The new system of liquidity providers is being introduced on Stockholmsborsen today and, to date, 13 listed companies have decided to use a liquidity provider. The system is designed to create the conditions for more liquid trading that will result in lower costs and reduced risks for investors. Nine members of Stockholmsborsen, that is, banks and brokers, have signed agreements with the Exchange under which they will act as liquidity providers.
The system of liquidity providers was launched by Stockholmsborsen in April. The companies that have decided to use liquidity providers to date are Beijer Electronics, VLT, CF Berg & Co, Optimail, Nefab, Novestra, Vostok Nafta, Klovern, Ledstiernan, Kaupthing Bank, MSC Konsult, BTS Group and ProAct IT Group. As of today, May 12, 2003, these companies will be marked "LP" (Liquidity Provider) in the share-price listings published by the newspapers that have decided to provide this supplementary information for investors.
"We are pleased that such a considerable amount of interest is being shown in our system for improving liquidity in share trading, which is of importance to all parties in the market. Share liquidity is of critical importance to efforts to reduce the investors' costs and risks, as well as for obtaining a fair valuation of an exchange-listed company," said Simon Nathanson, vice president of Stockholmsborsen.
Investment costs are reduced because the liquidity providers establish a maximum spread, meaning the maximum difference between the bid and ask prices. Studies show that trading in shares whose spread has narrowed increases, because trading in such shares becomes more attractive. Increased turnover leads in turn to a further increase in the number of buyers and sellers and thus to even better share liquidity.
"The liquidity provider system initiated by Stockholmsborsen will create conditions for more efficient and liquid trading in the shares of the 13 companies that have so far decided to use a liquidity provider. We hope that this will have a favorable impact on trading in these shares and that even more listed companies and members will show a similar interest in boosting the liquidity of share trading," said Simon Nathanson.
Stockholmsborsen's members sign an agreement with the Exchange under which they undertake to comply with certain regulations and minimum requirements as liquidity providers. The members offer listed companies the liquidity-provision service and sign agreements to this effect with the companies. The liquidity providers are obliged to ensure that buy and sell prices in the companies' shares are continuously available during each day of trading. The members who have signed such agreements with Stockholmsborsen to date are E. Ohman J:or Fondkommission, Svenska Handelsbanken, Enskilda Securities, Remium, Hagstromer & Qviberg Fondkommission, JP Nordiska, ForeningsSparbanken, Danske Bank A/S and D. Carnegie.
For further information, please contact: Stockholmsborsen Anders Ackebo, Head of Listing & Surveillance +46(0)8 405 70 10 Stockholmsborsen Maria Andark, VP Corporate Communication +46 (0)70 597 52 76
For more information, visit www.stockholmsborsen.se
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