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A company can ensure that the spread and order coverage requirements are satisfied by entering into a market maker agreement. A market maker agreement is an agreement between a company and an Exchange member to support the liquidity of the share by the member quoting buying and selling prices in the Exchange's trading system with an agreed spread. The Exchange has prepared guidelines for the companies' conclusion of market maker agreements.
The following member firms offer to conclude market maker agreements:
- Alfred Berg Bank
- Alm. Brand Bank
- Amagerbanken
- Amtssparekassen Fyn
- Carnegie Bank
- Danske Securities
- Enskilda Securities
- Gudme Raaschou Bank
- Handelsbanken
- Jyske Bank
- Nordea Securities AB
- Spar Nord
- Sydbank
The Copenhagen Stock Exchange will currently update this list at the Exchange's web site, www.xcse.dk.
A preliminary selection of companies for MidCap+ and SmallCap+ shows that 13 and 18 companies (19 shares), respectively, are eligible for the new segments.
Since 20 November, SimCorp has been selected for MidCap+ after the company has entered into a market maker agreement that will ensure that the spread and order coverage requirements are met.
Senior Vice President Peter Belling commented: "We are pleased that already now 13 member firms offer market maker agreements to the listed companies and thus support our endeavours to add liquidity to the equity market and our initiative "New energy to Danish equities".
A share with a narrow spread and great depth (number of shares offered at the bid and offer prices) will, other things being equal, be more attractive to the investors. The investor's expected yield on the shares will in other words increase."
IR Manager Thomas Einfeldt, SimCorp A/S, commented: "Historically, the spread between the buying and selling prices of midcap and smallcap shares has fluctuated a lot - also for SimCorp. This has no doubt put a damper on some investors' interest, and it does mean something to be able to trade at "sharp" prices. Therefore, SimCorp has entered into a market maker agreement that will ensure a spread of no more than 2 per cent and an order coverage of not less than 90 per cent. This will make investments in the share more attractive to investors. At the same time, we have made sure that SimCorp will meet the criteria for inclusion in the Exchange's new MidCap+ segment. Participation in the MidCap+ segment and the index will certainly stimulate interest in our company."
