Copenhagen Stock Exchange: Successful Auction In Government Securities In The Exchange's Trading System

Yesterday, Danmarks Nationalbank held an auction in the Saxess trading system in the new treasury note 4 per cent 2004. This is the first time that the Nationalbanken has used the new match sub-market for an auction in a government security. The auction received great interest, and the traded amount totalled just over DKK 5 billion in the new sub-market, corresponding to just over 55 per cent of the total trading volume in the security, which was just under DKK 9 billion.

The mortgage credit institutions also have a special issue sub-market, which was used for the first time in December 2000. It has lately been used successfully by the Exchange's two mortgage credit members in December 2001 at the refinancing of interest rate adjusted loans.

President and CEO Hans-Ole Jochumsen says: "With the Nationalbanken's first auction in treasury notes in the Saxess trading system, the auctions market for the issuance of bonds has been made smoother for the benefit of both issuers and investors. Also, it is quite unusual to offer auctions in bonds through a stock trading system."

Nykredit A/S and Realkredit Danmark A/S and the Nationalbanken can presently use the trading system for the first sale of bonds by way of auction. Danmarks Nationalbank also has the possibility of repurchasing bonds through auctions in the Saxess trading system.

29 of the Exchange's 48 members have signed up for the bond market so that they can trade fixed income instruments and participate in the major auctions.