Reykjavik Energy: Changes to market making agreements
28. jan 2021
Orkuveitan
Orkuveita Reykjavíkur has extended market making agreements with Arion Bank hf., Íslandsbanki hf., Kvika banki hf. and Landsbankinn hf. regarding OR‘s bond series; OR020934 GB and OR180255 GB on the secondary market. The bonds have already been admitted to trading on Nasdaq Iceland, but the market makers' obligations under the agreement took effect on 27 January 2021.
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 may not exceed 1.5%.
If 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 matching, 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.
Market making with the category OR090546 will not be renewed.
