The shareholder meeting of Sarajevo Stock Exchange approved new exchange rules, which enter into force on 5 September 2015.
• Changes in the organisation of SASE markets and static price limits. The new organisation of the market (segments and sub-segments) and the new static price limits will be as follows:
o Official market - static price limit +/- 10%
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Company shares
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Investment funds shares
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Bonds
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Other securities
o Free market
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Company shares
- Free market Sub-segment 1 (ST1) - static price limit: +/- 20%
- Free market Sub-segment 2 (ST2) - static price limit: +/- 50%
- Free market Sub-segment 3 (ST3) - static price limit: + 100% / - 90%
- Sub-segment for companies in bankruptcy proceedings - no static price limit -
Bonds - static price limit +/- 50%
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Other securities - static price limit +/- 50%
• Changes in trading methods. The Continuous Trading Method (MTFS) will now be applied to the Official market, to the Free market Sub-segments ST1 and ST2, the Free Market for bonds and the Free market for other securities, while the Auction Trading Method will be applied to the Free market Sub-segment ST3 and to shares of companies in bankruptcy proceedings.
• Auctions. Special auctions as a trading option are abolished, extraordinary auctions still remain possible.
• Introduction of Red Flags list. Instead of numerous prohibitions and restrictions, the new rules refer to the Red Flags list, which determines forms of suspicious behaviour. Stock exchange members that execute trading orders irrespective of the indications specified in the Red Flags list will be held responsible for violations of the Rules.
Impact on investors: The introduction of the new SASE rules will bring important improvements to the local capital market.