A number of changes are due to be implemented this autumn which will enhance Trading System Amsterdam(TSA), the integrated stock market trading system operated at the Amsterdam Exchanges NV. The changes will introduce greater transparency for some transactions and improve liquidity in the category National Market; shares and non-government bonds. The adjustments broadly fall into two categories:
ATM-Type Trade In Non-Government Bonds
Under the new system, the most liquid sector of non-government bonds, which includes issues of major banks such as Bank Nederlandse Gementeen, will be able to be traded in the same way as bonds on the Amsterdam Treasury Bond Market (ATM). Hoekman firms will be able to act as interdealer brokers though they will also be permitted to take positions.
The introduction of this facility, to be named Wholesale Trading Order (WTO), will allow wholesale trading for transactions of over one million guilders. Wholesale and retail trades will be linked in a single system, ensuring that price spreads remain narrow. The hoekman firms will be obliged to transact small orders at or within the best bid and offer price in the wholesale segment, thus protecting the best interests of the private investor.
Execution of Share and Bond Transactions
The second major adjustment relates to the execution of orders by hoekmen firms. Under the new TSA rules the hoekmen have to hold the price of matching orders at which quotation the orders are subsequently transacted. The hoekmen will also be obliged to reveal the price and size of some of the orders on their books.
This was previously not the case and could create confusion, as the party placing the order did not know whether his order had been executed. The new regime provides more clarity with regard to the system of matching orders.
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.
ATM-Type Trade In Non-Government Bonds
Under the new system, the most liquid sector of non-government bonds, which includes issues of major banks such as Bank Nederlandse Gementeen, will be able to be traded in the same way as bonds on the Amsterdam Treasury Bond Market (ATM). Hoekman firms will be able to act as interdealer brokers though they will also be permitted to take positions.
The introduction of this facility, to be named Wholesale Trading Order (WTO), will allow wholesale trading for transactions of over one million guilders. Wholesale and retail trades will be linked in a single system, ensuring that price spreads remain narrow. The hoekman firms will be obliged to transact small orders at or within the best bid and offer price in the wholesale segment, thus protecting the best interests of the private investor.
Execution of Share and Bond Transactions
The second major adjustment relates to the execution of orders by hoekmen firms. Under the new TSA rules the hoekmen have to hold the price of matching orders at which quotation the orders are subsequently transacted. The hoekmen will also be obliged to reveal the price and size of some of the orders on their books.
This was previously not the case and could create confusion, as the party placing the order did not know whether his order had been executed. The new regime provides more clarity with regard to the system of matching orders.
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.
