TALLINN STOCK EXCHANGE

ANNOUNCEMENT

 

CHANGES TO THE TRADING MODEL AND TRADING RULES OF TSE

 

On 19.09.2001 the Management Board of Tallinn Stock Exchange (TSE) 

approved amendments to the Trading Rules of the TSE Rules and 

Regulations. The amendments, effective from 24.09.2001, will be 

available on the TSE Internet homepage <a href='http://www.tse.ee' target='_blank'>http://www.tse.ee</a> under section 

Rules and Regulations / Amendments to the Rules and Regulations.

 

According to the amendment, the new minimum lot for shares and 

bonds will be one security and the minimum lot for privatisation 

vouchers (EVP) 100 EVP-s. So far, the minimum lots for securities 

traded on the TSE were between 500 - 100,000 securities.  

 

The aim of the change, enabling display of all transaction orders 

in the TSE trading system, is to increase trading activity, add 

market transparency and depth. Additionally, this change is a way 

to accustom investors and member firms with to be implemented 

trading model of HEX.

 

"It enables investors to place their transaction orders to the 

trading system as wished as well as to see it in the order book, 

which would definitely increase investors' interest. Hopefully most 

of the TSE member firms will start to offer this type of service to 

their clients," said Gert Tiivas, TSE Management Board Chairman.

 

Market makers of the dealer market have now the opportunity to 

display all transaction orders. Previously, a market maker was 

allowed to display only one bid and offer quotation.

 

At the same time, obligatory minimum lots were established for 

market makers to guarantee liquidity and market depth for the 

securities traded on the dealer market. New minimum lots, minimum 

lots for the quotations, and lots used in the calculation of the 

reference price are available on the TSE Internet homepage under 

section Rules and Regulations/ Additional Documents.

 

In order to decrease possibilities for manipulation of the 

reference price, new lots were established for securities traded in 

the order-driven public order book.

 

TSE