Landsbanki Islands hf. (Landsbanki) has started acting as a market-maker, for its own account, for shares in Kaupthing Bank hf. (Kaupthing). The agreement entails that Landsbanki will submit daily bid/ask offers for shares in Kaupthing 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 Kaupthing’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: Landsbanki will submit daily bid and offer quotes for shares in Kaupthing for a minimum of 40.000 shares (each share being ISK 10,0 at nominal value ) at a price determined by Landsbanki.
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 was effective as of 21 January 2008.