Recommendations:Number of Decimal Places in the Daily Index, & Derived Dirty Price

OMX Nordic Exchange in Iceland (the Exchange) has recently endeavoured to standardise practices on the Icelandic bond and bill market to reflect general practices on other leading markets. The main purpose of this standardisation is to co-ordinate business practices by market participants while at the same time facilitating access by foreign investors.

The Exchange members have indicated that they consider the lack of consistency in the daily CPI and CTI values used to calculate indexation, and determination of dirty prices derived from clean prices to be in need of improvement, especially the fact that market participants do not use the same number of decimal places. This results in mismatches between the calculation systems of the Exchange members, causing unnecessary transaction costs. Therefore OMX Nordic Exchange in Iceland has decided, following a review process, to recommend to market participants that their calculations of the daily index and derived dirty price follow these recommendations:

1.	Five decimal places in daily indices of CPI and CTI,
2.	Six decimal places in dirty prices derived from clean prices.

Further details can be seen in the attachment.

For further information, please contact Brynjar Orn Olafsson (brynjar.olafsson@omxgroup.com, tel. +354 525 -2856).