TUVL - Segment of Ljubljana Stock Exchange Trading for a Selection of Government Securities Through Designated Market Makers

Termination of trading on the market maker TUVL segment.

On 19 December 2007 the Ljubljana Stock Exchange Management Board adopted the resolution to terminate trading of government bonds through the market maker TUVL segment as of 3 January 2008. The last day of trading on the TUVL segment was Friday, 28 December 2007. The Management Board resolution was adopted after reaching agreement with the Ministry of Finance on the termination of this regulated market segment.

Access to the TUVL website https://tuvl.ljse.si/cgi-bin/menice.cgi?m=public&lang=en will be available to public for the period of 6 months after the termination of trading of government bonds through the market maker TUVL segment, i.e. till 30 June 2008.

The archives of trades concluded on TUVL will be available till 31 March 2008.

TUVL was a special segment of Ljubljana Stock Exchange trading (further referred to as »TUVL«)  for a selection of government securities (defined by the Ministry of Finance), for which market makers have assumed market making obligation. Information on the TUVL trading segment is available on the Ljubljana Stock Exchange website http://www.ljse.si  on the special TUVL dedicated site section, where the daily market makers’ quotes as well as information on concluded deals is published.

Main characteristics of TUVL were:

• organized trading regulated by the “Rules of Trading the Republic of Slovenia’s Securities through Designated Market Makers” adopted by LJSE Management  Board and approved by the Securities Market Agency and supervised by the LJSE and  Securities Market Agency
• trades concluded bilaterally between the market maker and the counterparty (over phone, fax or other - at the choice of the trading parties), on the basis of daily quotes for the government securities published on the special part of LJSE website designated for TUVL trading
• Transaction cost :  KDD¹ fee for DVP settlement , which is charged  to both  trading parties; the current KDD fee for the TUVL trades is  0,0023% of the trading value,  (minimum  10,43 EUR , maximum 83,46 EUR), which is  less than  10%  of the  official KDD Tariff fee ²
• the price of trade has to be within the bid/ask spread of the market maker’s quote
• bid/ask prices spread not limited by the trading rules
• minimum nominal value of a trade 30 million SIT
• at least one of the trading parties has to be  a designated market maker
• no ex-coupon rule for the trades of bonds settled after the record date
• settlement of trades through Delivery vs. Payment system provided by KDD on the basis of securities transfer order entered into the KDD central registry by the  seller’s KDD registry member and confirmed by the  buyer’s KDD registry member;
• payment of purchase price effected through the clearing accounts of the buyer’s and seller’s registry member
• standard settlement  for treasury bills is  T+1 and for government bonds  T+3 (but the trading parties may agree to a settlement date  which is less than T+3).
• data on trades concluded  published daily on the TUVL section of the LJSE website
• the unified price of trades and turnover published daily in the LJSE official price list
• yield to maturity  of trades calculated  in accordance with LJSE TUVL Regulations (ISMA 6.3 )

1: KDD – Central Clearing and Depository Corporation Inc., Ljubljana (local CSD)