Riga Stock Exchange                                              28.07.2005



Enhanced debt securities trading model to be launched in Riga and Tallinn



Starting with August 1, 2005, the trading system in Riga and Tallinn stock 

exchanges will be complemented by a new market segment for debt securities. 

The orders will be matched automatically according to yield to maturity 

specified in the buy or sell orders. The model is already operational at 

the Vilnius Stock Exchange. The launch of the automatch submarket for debt 

securities in the Riga and Tallinn stock exchanges is another step in 

harmonization of the cash markets in the Baltics. 



The new model will facilitate the order input for the brokers: to trade with 

debt securities, they will have to indicate yield to maturity in buy or sell 

orders, and the orders will be automatched according to the yields. As 

previously, the brokers will have to specify the nominal value of securities 

in the orders. The new model may be applied for trading of short-term debt 

securities and fixed rate long-term debt securities.  



The new model will operate alongside with the existing one, where the orders 

are not matched automatically, and the price has to be quoted in percentage 

of nominal, including accrued income (the so-called “dirty price). The 

trading of debt securities with variable rate and contract deals with 

non-standard settlement date will be possible only in the previous model. 



The launch of the new market segment on August 1, 2005 will involve the 

changes of debt securities trading codes in the Baltic markets. The debt 

securities traded in the automatch segment will have a code built of 11 

symbols, for example, LVGB038706A, where LVG stands for the issuer, namely, 

Latvian Government debt security; B – long-term debt security; 0387 – fixed 

income security with coupon rate 3.87%; 06 – maturity in 2006; A – securities 

series. The trading code of debt securities not traded in automatch segment 

will be built of 12 symbols – the 11th symbol will be followed by letter “B” 

(stands for “bulletin board” principle) – for example, LVGB038706AB. 



For more information, please contact:

Inese Purgaile, Corporate Communications Specialist

Riga Stock Exchange

Phone: +371 7212431