Market interference

Oslo Børs and Oslo Axess

Oslo Børs has a variety of instruments at its disposal for guiding and regulating the process price quotation. The measures available are "matching halt", "special observation", "trading halt" and "circuit breakers".

Matching halt

A matching halt involves stopping the automatic matching of buy and sell orders in a particular security. This prevents trading being carried out automatically through the trading system, but trades can be agreed manually through telephone contact with the other party. If members choose to conduct manual trades, they should act cautiously and customers should be informed that a matching halt has been imposed.

There are a variety of reasons that make it necessary to use a matching halt. A matching halt may, for example, be appropriate if a price sensitive announcement is about to be released. A matching halt will then give market participants time to evaluate the new information and decide whether they wish to cancel any of the orders they have entered in the trading system.

A matching halt may also be appropriate if there is a suspicion that some market participants have information that is not known by other participants, or if the security in question shows unusual changes in price or traded volume. In this kind of situation, a matching halt is used to provide Oslo Børs time to investigate whether some participants in the market have access to information about the company in question that is not available to all participants, or if there are other circumstances that are causing an unusual trading pattern.

A matching halt normally lasts for a short period of time. Oslo Børs has carried out research into the use of matching halts and how these affect market participants, and has concluded that participants act on the basis of a matching halt and take advantage of the opportunities that this provides, and this helps to make the market operate more efficiently.

Special observation

Special observation is a measure used under circumstances that may make the valuation of the security in question particularly uncertain. The fact that a security is placed under special observation does not in itself impose any restrictions on trading, but it serves to notify market participants that there is some particular uncertainty over the pricing of the security. Special observation can, in contrast to a matching halt, be applied for a longer period.

Trading halt

A trading halt, also sometimes called a suspension, means that the security can no longer be traded through the trading system, orders are deleted and the market is notified. Oslo Børs may suspend financial instruments if they no longer satisfy Oslo Børs' terms and conditions or rules, or if called for on other special grounds. This is a serious measure, and can be used in cases where the price of the security is clearly incorrect and the situation cannot be resolved in any other way. It is possible to conduct and report manual trades under a trading halt. The need to exercise caution as described under matching halt, will in such cases be even more present.

Circuit breaker

A circuit breaker is not activated by the Market Surveillance Department, but is an automatic stop to trading that is activated by the trading system. A circuit breaker automatically stops trading, and is triggered to reduce uncertainty at times of high volatility. A circuit breaker can last for up to 4 minutes, and is triggered if there are substantial price movements in a security. The purpose of the circuit breaker is to give market participants a few minutes to evaluate any new information, review their trading position and if necessary cancel any incorrect orders.

There are two types of circuit breaker: a ’dynamic’ circuit breaker uses the last traded price as its reference price, while a ’static’ circuit breaker uses the last auction price as its reference price. The Market Surveillance Department of Oslo Børs is able to set the limits that will trigger a circuit breaker, based on events affecting a company and market conditions.

 

Merkur Market

Oslo Børs has a variety of instruments at its disposal for guiding and regulating the process price quotation. The measures available are "matching halt", "special observation", "trading halt" and "circuit breakers".

Matching halt

A matching halt involves stopping the automatic matching of buy and sell orders in a particular security. This prevents trading being carried out automatically through the trading system, but trades can be agreed manually through telephone contact with the other party. If members choose to conduct manual trades, they should act cautiously and customers should be informed that a matching halt has been imposed.

There are a variety of reasons that make it necessary to use a matching halt. A matching halt may, for example, be appropriate if a price sensitive announcement is about to be released. A matching halt will then give market participants time to evaluate the new information and decide whether they wish to cancel any of the orders they have entered in the trading system.

A matching halt may also be appropriate if there is a suspicion that some market participants have information that is not known by other participants, or if the security in question shows unusual changes in price or traded volume. In this kind of situation, a matching halt is used to provide Oslo Børs time to investigate whether some participants in the market have access to information about the company in question that is not available to all participants, or if there are other circumstances that are causing an unusual trading pattern.

A matching halt normally lasts for a short period of time.

Special observation

Special observation is a measure used under circumstances that may make the valuation of the security in question particularly uncertain. The fact that a security is placed under special observation does not in itself impose any restrictions on trading, but it serves to notify market participants that there is some particular uncertainty over the pricing of the security.

Trading halt

A trading halt, also sometimes called a suspension, means that the security can no longer be traded through the trading system, orders are deleted and the market is notified. Oslo Børs may suspend financial instruments if they no longer satisfy Merkur Markest,s terms and conditions or rules, or if called for on other special grounds. This is a serious measure, and can be used in cases where the price of the security is clearly incorrect and the situation cannot be resolved in any other way. It is possible to conduct and report manual trades under a trading halt. The need to exercise caution as described under matching halt, will in such cases be even more present.

Circuit breaker

A circuit breaker is not activated by the Market Surveillance Department, but is an automatic stop to trading that is activated by the trading system. A circuit breaker automatically stops trading, and is triggered to reduce uncertainty at times of high volatility. A circuit breaker can last for up to 4 minutes, and is triggered if there are substantial price movements in a security. The purpose of the circuit breaker is to give market participants a few minutes to evaluate any new information, review their trading position and if necessary cancel any incorrect orders.

There are two types of circuit breaker: a ’dynamic’ circuit breaker uses the last traded price as its reference price, while a ’static’ circuit breaker uses the last auction price as its reference price. The Market Surveillance Department of Oslo Børs is able to set the limits that will trigger a circuit breaker, based on events affecting a company and market conditions.

 

Nordic ABM

The measures for interference with the pricing of the bonds on Nordic ABM are as follows:

Information to the public if there is suspicion of unequal information to the public

Nordic ABM may decide to inform the public, in the event of irregular trade reports, if there is suspicion of unequal information to the public, or in response to other events.

Special observation

Special observation is a measure used if circumstances attached to a borrower or a bond loan make pricing of the bonds particularly uncertain. The fact that a security is placed under special observation does not in itself impose any restrictions on trading, but it serves to notify market participants that there is some particular uncertainty over the pricing of the security.

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Market surveillance