Amsterdam Exchanges Introduces New Procedures For Flotations

Amsterdam Exchanges strongly urges investors not to submit market orders for new flotations. It also reserves the right to refuse limit orders for newly floated securities if these orders do not have a realistic limit in view of the issue price and would therefore disrupt the market. As from today Amsterdam Exchanges will also publish details of the BBO and the depth of the market at 8.45 a.m. via the usual channels (e.g. data vendors), regardless of the time when the first quote is expected. In addition, the time when the first quote is expected will be communicated to the market more clearly in future. Investors will then know whether the orders they have given are likely to be executed or if they will need to be modified, and can therefore respond to developments as they happen. The hoekman will also be required to issue a recommended price 15 minutes before the first quote is given. This recommended price will be published and is intended to give the market timely information on possible price trends. Although the recommended price is intended to be used as a guideline, it is possible that changes may occur after this price is published. If a recommended price deviates substantially from the issue price, the Director of Trading may decide to delay the first quote for up to 30 minutes or more to allow investors to modify their orders if they wish, although they must be prepared to take swift action as necessary. The Director of Trading will assess each possible delay individually. In extreme circumstances, or if the first quote is planned for the late afternoon, it is possible that a quote will not be given on the first day of trading.