As a consequence of the implementation of the Securities Markets Act (2007:528), the rules for trading halts are changed to some extent. When an exchange or a market place has decided to halt trading, Finansinspektionen (the Swedish Financial Supervisory Authority) shall decide whether such trading halt shall prevail. For detailed rules, we refer to the Securities Markets Act (2007:528).
Since the background of a trading halt, and its consequences, will differ based upon if it has been decided by Finansinspektionen or not, the messages sent out by OMX Nordic Exchange Stockholm will be formulated differently. The meanings of these different types of notices are explained below. The texts that can be included in such messages are, in aggregate forms:
1. Trading has been suspended
This message means that OMX Nordic Exchange Stockholm has decided to halt trading, in accordance with 22 chapter 1§ of the Securities Markets Act (2007:528).
2. Trading has been suspended. Finansinspektionen has decided that this trading halt shall prevail.
This message means that Finansinspektionen, in accordance with 22 chapter 2§ of the Securities Markets Act (2007:528), has decided to suspend trading or that OMX Nordic Exchange Stockholm has decided upon a suspension and that Finansinspektionen, before such decision has been implemented, has decided that the trading halt shall prevail.
3. Finansinspektionen has decided that the current trading halt shall prevail.
This message means that OMX Nordic Exchange in Stockholm initially has decided upon a trading halt and that such decision has been notified in accordance with item 1 above, and that Finansinspektionen at a later stage has decided that the trading halt shall prevail.
The consequences of a decision by Finansinspektionen to suspend trading is that no trading can take place at any exchange or marketplace under supervision of Finansinspektionen and that investment firms cannot take part in any trading in the instrument that has been suspended or related instruments.
The different forms of messages will be applied from 1 November. In addition, from 1 December OMX Nordic Exchange Stockholm will also give the information above by applying different so called “stop codes” in the trading system for the situations described above. The stop codes are available in the SAXESS trading system and in certain systems that collect information from the exchange’s systems. The stop code “TH”, which today is being used for all trading halts, will be used when trading halts have been decided by OMX Nordic Exchange Stockholm, as described under item 1 above. A new stop code labelled “RH” (Regulatory Halt) will be used for trading halts as described under item 2 above. Situations described under item 3 above will result in the stop code “TH” initially being applied, but that it is changed to “RH” when Finansinspektionen has decided that the trading halt shall prevail.
For further information concerning this exchange notice please contact Joakim Strid, telephone + 46 8 405 70 30.
