Landsbanki announced today that it has signed a market-making agreement with Kaupthing, whereby Kaupthing will act as market maker for shares issued by Landsbanki. This means that Kaupthing will submit daily bid/ask offers for shares in Landsbanki through OMX Nordic Exchange Iceland before the market opens each day on offers that will only be valid within that day. The purpose of the agreement is to facilitate trading and improve liquidity in Landsbanki’s shares on the OMX Nordic Exchange Iceland and to promote efficient and transparent price formation.
The terms of the market making agreement are as follows: – Kaupthing will submit daily bid and offer quotes for shares in Landsbanki for a minimum of 1,000,000 shares at a price determined by Kaupthing.- Maximum bid/ask spread shall not exceed 1.0% and the deviation from the last transaction price shall not exceed 3.0%- The maximum obligated total trades per day is ISK 400,000,000 market value- The agreement is effective as of 21 January 2008.