Strong Growth Continues Within OM's Exchange Operations

Trading on OM's exchanges was very intense during the first three quarters of the year. Year-on-year, daily average share turnover on the OM Stockholm Exchange increased by 25 percent to SEK 9.1 bn (7.3). Average turnover generated by options and futures trading rose by 22 percent to 226,029 (184,709) contracts per day. A record-high volume of Norwegian derivatives was traded during the period. Compared to the same period in 1998 the options and futures trading on the Oslo Stock Exchange, which has been linked together with OM's exchanges since 1997, increased by 107 percent. Throughout the year OM has consolidated its market position in a number of important, highly competitive equities and equity derivatives. The number of new members and customers also continued to grow during the reporting period. At the end of September, total options and futures customers numbered 70,900 (61,080). At the period-end, the number of banks and brokerage firms with membership of OM's exchanges was 182 (163) in 11 countries. Oslo Stock Exchange has initiated negotiations regarding joining the Nordic exchange alliance Norex. Norex currently consists of the link between the OM Stockholm Exchange and the Copenhagen Stock Exchange through OM's newly developed exchange trading system, SAXESS. Initial discussions within the framework of Norex are also being held with other exchanges. Both OM Technology and the business area Transaction are involved in negotiations for the expansion of co-operation between exchanges. The Copenhagen Stock Exchange has also signed an agreement with OM Technology to transfer the Danish bond market to OM's SAXESS trading system. This would increase accessibility to Danish bond trading for the OM Stockholm Exchange's members. The Danish bond trade, which is the largest in the Nordic region, is expected to be introduced in SAXESS during the second quarter of the year 2000. The entire sale of SAXESS to the Copenhagen Stock Exchange generates a total licence and project revenue of over SEK 40 m for OM Technology. In addition OM receives, in part, a fixed fee and, in part a variable, volume-based fee which is expected to amount to over SEK 20 m per annum. With effect from October 1, market hours for shares and derivatives trading on both the OM Stockholm Exchange and the OM London Exchange have been extended by one hour. Trading now opens half an hour earlier in the morning, at CET 09.30, and closes half an hour later in the afternoon, at CET 17.30. The extension of trading hours is a natural market adaptation to the increase in private client trading and the growing international interest in Swedish equity products. A further extension of trading hours is being considered in conjunction with the Exchanges' customers.