STOCKHOLM, Sweden, February 19, 2003 (PRIMEZONE) -- Stockholmsborsen has decided to temporarily reduce the minimum fee for large transactions involving Ericsson (Nasdaq:ERICY) options. The adjustment of the minimum fee will facilitate increased trade. The change in fees is expected to have a marginal impact on Stockholmsborsen's total revenues.
With the aim of stimulating the liquidity of options trading, the existing fee structure includes a discount system for large transactions, such as a minimum fee of SEK 2.00 per contract. Although the discount system has generally functioned well, the minimum fee combined with the fact that the present price of Ericsson shares is low in a historical perspective has entailed that charges have become much higher than intended, in percentage terms. Accordingly, Stockholmsborsen has decided to temporarily reduce the minimum fee for trading in Ericsson options.
"We want to provide a platform for improved liquidity in trading in Ericsson options. To achieve this, we are reducing the fees for large transactions by up to 50%. At the same time, we are satisfying our customers' demand for a system that continues to enable cost-effective trading in large Ericsson contracts," says Simon Nathanson, Executive Vice President, Stockholmsborsen.
Trading in Ericsson options has been considerable in recent months. The sharp drop in the price of Ericsson shares is resulting in low premiums, which means that investors are trading in progressively larger lots of Ericsson options.
Stockholmsborsen is reducing the minimum fee for transactions involving 30,000 contracts or more by 50%, from SEK 2.00 to SEK 1.00. For transactions involving between 10,000 and 30,000 contracts, the minimum fee is being reduced by 25%, from SEK 2.00 to SEK 1.50. The adjustment of the minimum fee will result in an average decrease of slightly more than 25% in the fee for trading in Ericsson options on Stockholmsborsen, calculated on the basis of premium levels and trading activity during the second half of 2002. The change is temporary and will apply for three months, from February 24th, until May 24th, 2003.
For further information Claes Urban Dackberg, VP Product Area Tel +46 (0)70 569 52 09 Equities, Stockholmsborsen Maria Andark, VP Corporate Communications, Tel +46 (0)70 597 52 76 Stockholmsborsen
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