Change To Standard Tick Sizes For Shares Traded On AEX Stock Market

On Friday 1 October, Amsterdam Exchanges' stock market will introduce a new standard for tick sizes for shares. The adjusted tick sizes will be based on the closing price of each share on Thursday 30 September. The standard tick size for a share is dependent on the share's absolute price. The new standard to be introduced on 1 October 1999 is as follows: Shares in the AEX index: Share price under euro 50.00, tick size euro 0.01; Share price euro 50.00 or more, tick size euro 0.05. Other shares (shares in AMX index, other limit order book securities, investment funds, lirics and foreign shares): Share price under euro 5.00, tick size euro 0.01; Share price euro 5.00 or more, tick size euro 0.05. The current standard tick size for warrants, share dividends, rights, etc., will remain euro 0.01. As an exception to this rule, Royal Dutch and ING Groep, whose share prices currently exceed euro 50.00, will have a tick size of euro 0.01. Where appropriate the Director of Trading may decide that a different tick size should be used for a specific security. Adjustments after 1 October: AEX index shares: The daily closing price will be used to determine the tick size for the next day for shares in the limit order book. To ensure that the tick size for a particular share does not vary from day to day, the following rules will apply when making adjustments: A share with a closing price of euro 50.00 or less will have a tick size of euro 0.01 the next day; Shares with a tick size of euro 0.01 will not have their tick size increased to euro 0.05 until their closing price reaches euro 55.00. Other shares: The tick size of other shares will be adjusted once a year on the basis of the closing price on the last trading day of the year. The new tick size will come into force on the first trading day of the new year. Retention of original date and time of entry for limit orders remaining in the limit order book overnight: When a tick size is increased from euro 0.01 to euro 0.05, the limit price for orders remaining in the limit order book overnight will be adjusted automatically. Buy limits will be rounded down to the nearest euro 0.05, whereas sell limits will be rounded up to the nearest euro 0.05. This means that orders will retain their original date and time of entry in the limit order book. Amsterdam Exchanges' options market: Amsterdam Exchanges' options market is currently investigating whether it would be desirable to adjust the tick size on its markets. Further information on this will be provided when available.