Market Making Directives
In order to ensure sufficient liquidity and a fair price, Article 11 of the Additional Rules on the SWX New Market requires the bank managing the flotation to act as market maker. Hitherto, this role has been governed by an agreement between the SWX and the bank in question. With effect from Thursday 1 February 2001 the Market Making Directives will stipulate that the provisions are laid down in the SWX's General Terms and Conditions of Business and the relevant Instruction. The market maker must ensure for at least 80% of the trading session that the bid-offer spread is not more than 3%. This obligation will apply for two years from the first trading day.
Transparency of information on the Internet
The SWX publishes information on liquidity ratios on its web page. The spread and liquidity for securities quoted on the SWX New Market are shown in a chart. It is also possible to call up the SWX New Market's Market Making Directives and a list of issuers and banks. The Directives and the information on market making are to be found on the internet web page under www.swx.com/admission/rl_making_en.pdf or www.swx.com/products/swxnm_intro_en.html.
Lock-up Directives
As well as containing more specific rules under Article 7 of the SWX New Market Additional Rules, these Directives also provide for measures to promote transparency and implementation of the sales restriction (or lock-up). The requirements include disclosure of the number of existing shareholders (and the percentage which their holdings bear to the total) that are not subject to the lock-up and the inclusion in the prospectus of a table giving the names of all shareholders that are subject to the lock-up. The latter must also be managed by SIS SegaInter Settle AG under a separate securities number until the end of the lock-up period and so may not be traded via the SWX. These Directives are to be found on the internet under www.swx.com/admission/listing_rules_en.html.
