The improvements to the trading system in the national market segment announced earlier will become effective from Friday October 27. These improvements encompass two areas: the introduction of so-called WASH orders for non-Limit Order Book securities and the creation of a wholesale segment for the most-actively traded non-government bonds. In addition the commission structure for the national market segment has been improved. Following last September's reforms to the most actively traded shares segment, these adjustments will ensure optimal trade and price formation in the national market segment (non-Limit Order Book securities).
WASH orders
A separate regime will be introduced for so-called WASH orders in the national market segment. WASH orders are buy and sell orders at the same price placed by securities houses in the central market. In principle the hoekman (market specialist) has the right to participate in the WASH order up to the transaction size he has shown on the screen. He can do so either at the best bid and offer price (BBO) via a confidential order or through his own quote. The commission tariff has been pegged at 0.25 per thousand for shares, rights, stock dividends and such like, and 0.16 per thousand for bonds and open-end investment funds.
Wholesale Trading Order (WTO)
A separate regime will also apply to so-called Wholesale Trading Orders (WTOs) in the most liquid non-government bonds segment. The hoekman will act as an interdealer broker, but unlike in the Amsterdam Treasury Bond Market, will be permitted to take positions. This regime is applicable to orders equal to or bigger than Y1 million; the initiator will pay 0.2 per thousand in commission while WTOs entered will be settled free of charge.
Adjustments to commission structure
In addition the commission structure for the national market segment will be adjusted. In practical terms this entails a reduction in the high tariff from 0.8 to 0.5 per thousand, and a hike in the low tariff from 0.16 to 0.25 per thousand. On balance this adjustment will result in an overall reduction in the general level of commissions.
For further information on the Amsterdam Exchanges NV, please contact: Thom Hoedemakers, Director of Communications, Amsterdam Exchanges NV, Beursplein 5, 1012 JW Amsterdam, Netherlands, Tel: + 31 20 5234014, Fax: + 31 20 5234950, or enter a text search "Amsterdam Exchanges NV" and "Business Monitor".
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
WASH orders
A separate regime will be introduced for so-called WASH orders in the national market segment. WASH orders are buy and sell orders at the same price placed by securities houses in the central market. In principle the hoekman (market specialist) has the right to participate in the WASH order up to the transaction size he has shown on the screen. He can do so either at the best bid and offer price (BBO) via a confidential order or through his own quote. The commission tariff has been pegged at 0.25 per thousand for shares, rights, stock dividends and such like, and 0.16 per thousand for bonds and open-end investment funds.
Wholesale Trading Order (WTO)
A separate regime will also apply to so-called Wholesale Trading Orders (WTOs) in the most liquid non-government bonds segment. The hoekman will act as an interdealer broker, but unlike in the Amsterdam Treasury Bond Market, will be permitted to take positions. This regime is applicable to orders equal to or bigger than Y1 million; the initiator will pay 0.2 per thousand in commission while WTOs entered will be settled free of charge.
Adjustments to commission structure
In addition the commission structure for the national market segment will be adjusted. In practical terms this entails a reduction in the high tariff from 0.8 to 0.5 per thousand, and a hike in the low tariff from 0.16 to 0.25 per thousand. On balance this adjustment will result in an overall reduction in the general level of commissions.
For further information on the Amsterdam Exchanges NV, please contact: Thom Hoedemakers, Director of Communications, Amsterdam Exchanges NV, Beursplein 5, 1012 JW Amsterdam, Netherlands, Tel: + 31 20 5234014, Fax: + 31 20 5234950, or enter a text search "Amsterdam Exchanges NV" and "Business Monitor".
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
