Changes have been made to the market making agreement with Arion banki for shares in Íslandsbanki hf. on Nasdaq Iceland. The changes are mainly due to the implementation of MiFID II into Icelandic law which came into force in Iceland 1 September 2021.
The changes made to the market making agreement with Arion banki are as follows:
Each daily bid and ask offers shall be for a minimum of 225,000 shares at a price which Arion banki determines in every instance, but not exceeding 3% deviation from last transaction price. The bid-ask spread shall be determined with reference to the tick size table of Nasdaq Iceland hf. as it is at any given time with the bid-ask spread as close to 1.5% as possible but not below 1.45%. The market makers are permitted to go below the spread in case of circumstances due to the tick size table of Nasdaq Iceland hf.
If Arion banki hf. makes transactions within the day exceeding 1,250,000 shares all commitments are cancelled until the next business day. If changes to Íslandsbanki‘s share price within a day exceeds 5.0%, Arion banki hf. can increase the maximum bid-sell spread temporarily that day to 3,0%.