This change means that the tick size for KFX shares priced at between DKK 50 and DKK 249.75 will be reduced to DKK 0.25, down from today’s DKK 0.50. KFX shares priced at between DKK 250 and DKK 499.50 will continue to have a tick size of DKK 0.50. For non-KFX shares priced at between DKK 50 and DKK 499.50 the tick size will remain unchanged – DKK 0.50.
The motivation for reducing the tick sizes for certain KFX shares is that for a great part of the opening hours they are traded at a difference between the best bid price and the best offer price (the so-called spread), which corresponds to the smallest possible tick size.
Jan Ovesen said: “We have decided to introduce an additional level to the tick size table and thus narrow the spread for a number of KFX shares. Our studies show that some of the existing tick sizes hamper the improvement of the market quality, including the possibility of creating sharper prices in the market.”
Based on the day’s price level, six of the coming KFX shares will have their tick sizes reduced, when the new portfolio enters into effect, viz: Danske Bank, Group 4 Falck, H Lundbeck, TDC, Vestas Wind Systems and William Demant Holding.
