Changes to market making agreements

By mcghee - February 15, 2022
403

[PRESS RELEASE] February 10 2022: Orkuveita Reykjavíkur has valid market making agreements with Arion Bank hf., Íslandsbanki hf., Kvika banki hf. and Landsbankinn hf. regarding OR‘s bond series; OR020934 GB, OR180242 GB  and OR180255 GB on the secondary market. The bonds OR020934 GB and OR180255 GB have already been admitted to trading on Nasdaq Iceland, trading on bonds OR180242 GB will commence no later then 31st of March 2022. The market makers’ obligations under the agreement took effect on 27 January 2022.

The purpose of this is to strengthen trading in the bonds covered by the agreement, increase their liquidity in the secondary market and promote normal price formation.

Market makers undertake to submit bids and offers for the bonds on the Exchange every day before the market opens. Bids must always be at least 20 m. kr. in each category at nominal value and tenders shall be renewed no later than within 15 minutes of receipt.

The maximum difference between market makers’ bid and ask spread is determined by the price of valid bids and may not exceed 1.0% on OR 020934 GB. The maximum difference between bid and ask spread on OR 180255 GB and OR 180242 GB may not exceed 1.5%.

If  two OR bond classes are traded and a market maker trades for a total of 120 m. kr. or more nominal value in any given trading day and  in one or more classes of bonds in automatic mating, he may deviate from the maximum difference between bid and ask bids for the remainder of the trading day.

If  three OR bond classes are traded and a market maker trades for a total of 180 m. kr. or more nominal value in any given trading day and  in one or more classes of bonds in automatic mating, he may deviate from the maximum difference between bid and ask bids for the remainder of the trading day.

Over the contractual period of this agreement, market makers may receive temporary bond loans in the category of bonds covered by the agreement.

Contact:

Bjarni Freyr Bjarnason
CFO
[email protected]

The original press release can be found at GlobeNewswire.com.