Introduction of intra-day auction to concentrate and improve liquidity

Stock Markets — By on June 13, 2014 at 8:47 AM

oslo bors13/06/2014 – Starting on 16 June, there will be an intraday auction for shares listed on Oslo Axess and for some shares listed on Oslo Børs that have limited liquidity. The intraday auctions will concentrate and improve liquidity in these shares.

Current practice is for opening and closing auctions to be held for all shares and equity certificates listed on the Oslo Børs and Oslo Axess marketplaces. Starting on 16 June, an additional auction will be carried out at 13:30 for shares listed on Oslo Axess and for shares listed on Oslo Børs that are in the OB Standard liquidity category.

The new auction will help to improve the process of price formation and increase interest in these shares. The companies affected are important both for Norwegian business and industry and for Oslo Børs.

The likelihood of finding a counterparty and carrying out a trade is improved when interest in a share is concentrated. The intraday auction will make it easier for parties with a natural interest in a particular share to find a matching party through the order book, while at the same time the auctions will facilitate crossing of larger orders in less-liquid securities.

Experience shows that the current opening and closing auctions work well. Around one- fifth of total daily trading is carried out through these auctions. Turnover is particularly high in the closing auction.

The closing auction is carried out following the end of normal trading at 16:20, while the opening auction is carried out at 09:00. The new auction will result in normal trading in the affected shares stopping at 13:30 and resuming at 13:35 following the end of the auction period.

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