New Tick Size For Trading On Oslo Børs

Following dialogue with investors, issuers and members, Oslo Børs has decided to make some changes to what is known as the tick size, i.e. the smallest change permitted in the trading price of a share. The background to the change is the general perception that the current increase in the tick size when the price of a share exceeds NOK 50 is too great, and the tick size for share prices in this range is reduced from NOK 0.50 to NOK 0.25.

It is important both for the cost of trading and for market liquidity that the difference between bid and offer prices (spread) is as small as possible. The change to tick size for shares trading in the range NOK 50 to NOK 150 will halve the minimum spread and so increase the likelihood of better liquidity, and is therefore in the best interests of investors and other market players.

The member exchanges of Norex have agreed on the principle of harmonising trading rules, but this task has not yet been completed in respect of tick sizes. However Oslo Børs has decided to implement this change to tick sizes in advance of Norex harmonisation in this area in response to its customers' views.

The change involves the introduction of a new range for tick size, with a tick size of NOK 0.25 for share prices between NOK 50.00 and NOK 149.75 with immediate effect from 23 June 2003. The structure of share prices for the purpose of tick size otherwise remains unchanged in anticipation of the completion of harmonisation on this point by the Norex alliance.

Following the change, tick sizes for trading on Oslo Børs will be as follows:

Shares and primary capital certificates (NOK)	Tick size
0.00 - 9.99	0.01
10.00 - 49.90	0.10
50.00 - 149.75	0.25
150.00 - 999.50	0.50
1,000.00 -	1.00