The Copenhagen Stock Exchange offers the most efficient marketplace for securities, because all buyers and sellers are able to place orders in the same system. Investors and brokers enjoy these advantages daily when trading stock in the all together 240 sub-funds of stock and bond based investment funds that are listed on the market places of the Copenhagen Stocks Exchange. In the incident where there is only one buyer and one seller of a security, the investor must accept the terms of the counterpart. The Stock Exchange, on the other hand, creates a volume and competition that minimizes the indirect cost of trading.
Trading with investment certificates on the open marketplaces also sets the standard for trading with investment certificates that are only traded in the banks’ immediate trading systems. Being listed on the Stock Exchange, investment funds furthermore have disclosure obligations such as three daily reports on inner value. The Stock Exchange distributes this information, so the market is continuously updated on the actual net asset value.
The ongoing market surveillance of the Stock Exchange also contributes to creating credibility to the fact that trading is transparent and is executed by the same standards as trading with stocks. Today, there are approx. 170 sub-funds on the market for exchange-listed investment certificates, distributed on 26 investment funds, while there are approx. 70 sub-funds on the XtraMarked, distributed on 12 investment funds. In recent years, the number of sub-funds on the Exchange’s markets has been on the rise.
Read the entire article ’Auctions make closing prices sharper’ in Focus no. 110 at the Exchange’s website www.omxgroup.com. Questions to the author may be sent to the e-mail address copenhagen@omxgroup.com until 5 June 2006.
Focus no 110: The Exchange ensures an open and fair market for investment certificates
