STOCKHOLM, Sweden, April 9, 2002 (PRIMEZONE) -- Stockholmsborsen is introducing a closing call, the purpose of which is to:
-- achieve efficient close-of-day pricing
-- reduce the risk of major close-of-day price fluctuations
-- provide investors with improved opportunities to complete major
transactions at the closing price with a limited impact on the
market
-- harmonize Stockholmsborsen's closing procedures with those of
other European stock exchanges
"Stockholmsborsen's main reason for introducing a closing call is to achieve efficient close-of-day pricing. The closing call is also compatible with the need among investors to be able to complete major transactions at the closing price with only limited impact on the market. However, it is important to note that the closing call is not a guarantee that major price fluctuations will be avoided in connection with the close of business," said Simon Nathanson, Executive Vice President, Stockholmsborsen.
A call is a type of electronic auction attended by buyers and sellers of shares. A call involves the trading of shares at an equilibrium price based on buy and sell orders placed during the call. The call will be open, meaning that buyers and sellers will be able to see the current equilibrium price of a share. The call will commence at 5:20 p.m. and include all shares, and be concluded for the final shares at 5:30 p.m. The derivative market and the warrant market will not be open during the call, as these markets close at 5:20 p.m.
The existing morning call will be transformed from a closed to an open call. The reason for this change is to make pricing as efficient as possible. As a result of this change, buy and sell prices will become visible as of 9:15 a.m.
The introduction of the closing call and the change to the morning call will become effective on May 21, 2002.
Stockholmsborsen's contacts with Members regarding this matter showed that the model selected for the closing call has strong support. A recent survey, conducted by the Swedish Securities Dealers' Association, showed that a clear majority of Members support the introduction of a closing call.
A more detailed description of the model for the closing call is available on Stockholmsborsen's website: www.stockholmsborsen.se.
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