In connection with recent years’ refinancing auctions in mortgage credit bonds we have noted that in a few cases some orders were placed covering a volume that significantly exceeded the offered volume in a securities code. As a result, the members who had placed the orders in question were allotted a disproportionately large share of the offered volume in relation to the other real orders at the same price.
In the opinion of the Exchange such order placements conflict with rule 4.6.2 of the Norex Member Rules regarding order placement.
Prior to the refinancing auctions in December 2004 we will therefore point out to our members that placed orders with a nominal value that exceeds the offered volume will be considered contrary to rule 4.6.2 of the Norex Member Rules, unless the relevant order covers several client orders. If a member can substantiate that several client orders collectively make up a value that exceeds the offered volume, the accumulation of these client orders into one placed order will not conflict with the above rule.
Contact person Kim Willerslev Jakobsen, kwj@cse.dk
Changes to 'trade types'
In MemberNews no. 2, 2004* - Bonds we informed our members that as part of the harmonisation between the Norex Exchanges a line of trade type changes were made.
We informed you that the trade type 'Accumulated Orders', among others, would change to 'Broker Fills'. However, it turns out that it is more appropriate to delete the trade type 'Accumulated Orders' and establish a new trade type 'Broker Fills'. The new type will be given the ID no. 62.
Finally, please note that the trade type 'Standard Average Based' will not be deleted until 3 January becoming effective on 4 January, and it will therefore be possible to report any 'off hour trades' on Monday morning with the trade type 'Standard Average Based'.
Contact person Henrik Lyck Hansen, hlh@cse.dk
*MemberNews - Bonds is issued in Danish only. References made to previous issues therefore refer to the MemberNews in Danish.
