The newspapers that publish share price lists will start to use the new liquidity categories and the information symbols at around the same time as they are launched by Oslo Børs. The new liquidity categories will be the main presentation format on the Oslo Børs web site. However it will still be possible to access share price lists presented using the same industrial classification as at present.<
The introduction of the new categories and the Information Symbol is intended to draw greater attention to the liquidity of shares and the approach issuers take to providing information to players in the market. Oslo Børs hopes that these changes will also give companies an incentive to improve their approach to the investor market.
New stock exchange tables
Liquidity categories
With effect from 4 October 2004, companies quoted on Oslo Børs will be allocated to one of the following liquidity categories:
|
OBX |
All shares that, pursuant to the index rules in force at any time, make up the OBX selection. This will normally include 25 shares. |
|
OB Match |
All shares with a minimum of 10 trades per day on average over a specified target period, except shares included in the OBX selection. |
|
OB Standard |
All shares with fewer than 10 trades per day on average over the target period. |
|
OB New (OB Nye) |
New shares and shares that have been listed for less than two months at the end of the target period. |
|
OB Primary Capital Certificates (OB Grunnfondsbevis) |
Issuers of primary capital certificates. |
The initial period to be used for determining the allocation of companies to categories will be 1 December 2003 to 31 May 2004. Oslo Børs will announce in mid-June the allocation of companies to the four liquidity categories that will take effect from 4 October. The allocation of companies to the four categories will then be reviewed twice a year, based on the periods 1 December - 31 May and 1 June - 30 November.
Oslo Børs has given careful consideration to the question of whether a market-making agreement for a company's shares might, in whole or part, replace the test of an average of 10 trades per day used for the OB Match category. It has been decided that market-making agreements will not replace this requirement at the time of the implementation of the liquidity segments. Oslo Børs intends, working in collaboration with other market players, to consider the launch of an organised market-making scheme on a general basis. A number of markets have already introduced this kind of scheme, including Stockholmsbörsen in May 2003. The Stockholm market has seen an across the board narrowing of the bid-offer spread and improved liquidity in terms of numbers of transactions since the launch of the market-making scheme.
Information symbol and English Symbol
Information plays a key role in helping the market to price shares . Oslo Børs wishes to draw particular attention to companies that make financial information easily available to investors and other market players by identifying companies that meet specific requirements with the Information Symbol. Companies will have to apply to Oslo Børs for the symbol, which will be awarded to companies that meet the requirements. The requirements are linked to three factors: the availability of information on the company's web site, the presentations it holds for the market and the speedy publication of interim reports after the end of each quarter .
A detailed specification of the requirements that must be satisfied is provided as an appendix to this press release. The requirements reflect some changes from the proposals initially proposed in response to comments by companies. These changes include a slightly longer timetable for the publication of interim reports, but the new requirements are still stricter than the current minimum requirements.
A further requirement is that each company must hold two company presentations each year that are available over the Internet. This may well take the form of a webcast, but the requirement can also be satisfied by a telephone conference or similar format. Oslo Børs has ceased to operate as a supplier of webcast facilities with effect from 2004 in order to avoid any conflict of interest between its regulatory role and its commercial interests.
Companies that make the same information available in English will also be eligible for a symbol to show this . Companies that qualify for the symbols will be shown in the share price lists with the letters I for the Information Symbol and E for the English Symbol.
Background
There is an established trend in the world's stock exchanges to categorise companies by liquidity. International capital markets are characterised by continuous pressure for improvement, and surveys have confirmed the importance of liquidity and access to corporate information for investment decision making.
Against this background, and also taking into account the comments from players in the market, Oslo Børs circulated a consultation document in November 2003 to a broad range of market players in Norway and internationally. The proposals made were well received and attracted wide support.
The allocation of companies to liquidity categories does not represent a change to the structure of listing. The Main List and the SMB List will continue without change, and published share price lists will continue to show on which List a company is quoted.
Memoranda detailing requirements and conditions:
