This implies that the non-listed unit trusts can be traded through the Exchange's distribution network, and that the many investors can also trade securities on the XtraMarkedet via the Internet.
In order to contribute to an increased professionalisation of the Danish market for unit trusts, the Copenhagen Stock Exchange has recently changed the rules applicable to listed unit trusts. The consequence of the new rules is that the market will receive more, better and more frequent information from listed unit trusts and from the non-listed unit trusts that are admitted to the Exchange's XtraMarked. In future, the unit trusts are for instance required to disclose intrinsic value at least three times per trading day.
Investment in unit trust certificates has expanded markedly during the past couple of years, and the capital in the unit trusts has increased more than fivefold since end-1996. Many of the unit trusts are not listed, and at present they do not have a common market place where they can be traded.
President and CEO Hans-Ole Jochumsen says: "By launching the XtraMarkedet we will, on the one hand, be able to ensure the non-listed unit trusts an expanded distribution network and, on the other, we can provide especially the private investors with better terms as they are now given a transparent market where they can trade unit trust certificates. The Exchange's XtraMarked will use the same trading system, Saxess, which is also used for trading listed securities. In this way the investors are offered precisely the same facilities for trading unlisted unit trust certificates on the XtraMarkedet as apply to listed unit trust certificates on the stock market."
Unit trust certificates traded on the XtraMarkedet will in terms of tax be regarded as non-listed shares. This means that the many bond-related funds now will have the possibility of being traded on a market without any unfortunate tax consequences for the investors. As a consequence of the tax treatment, the bond-related funds have practically been excluded from the stock market since 1994.
In future, www.xcse.dk will be the combining place where investors can obtain all required information on the unit trusts which are either listed on the Copenhagen Stock Exchange or admitted for trading on the Exchange's XtraMarked - the new authorised market place in Denmark. Investors can for example on www.xcse.dk obtain updates of the unit trusts' intrinsic value at least three times a day without delay.
