Will SinterCast join the group of companies listed on the Stockholm stock exchange that trade with a “marketmaker” which guarantees the liquidity of the share (likviditetsgaranti)? Also, will SinterCast join the group of companies that can be traded without any fees to the buyer and seller, for example through the Nordnet brokerage?


Shareholder, Willy Persson

The marketmaker concept was introduced to the Stockholm stock exchange less than one month ago. Within the concept, the stock exchange has divided the listed companies into three different categories: those with ’high’ share turnover (Group A); those with ’normal’ share turnover (Group B); and, those with ’low’ share turnover (Group C). According to the rules of the Stock Exchange, the companies assigned to Group C are required to adopt a marketmaker which will guarantee that shares are always available for buying or selling within a 5% spread. SinterCast has been assigned to Group B for companies with ’normal’ share turnover. Therefore, we are not required to implement the marketmaker concept. As the marketmaker concept is still relatively new, we will monitor its effect on the share turnover and the share value of the participating Group C companies before making any decision to join.

The possibility for individuals to buy and sell shares on the Stockholm Stock Exchange without any brokerage fees is also relatively new. This concept requires that SinterCast pay a fixed monthly fee to a brokerage firm and that SinterCast align itself with that broker and promote/recommend that broker on its website. As this concept is also relatively new, we will monitor the progress of the participating companies to determine if the number of share transactions and/or the share value is positively affected as a result of the ’free-trade’ concept.

Overall, these two new concepts may be of interest to SinterCast. We have investigated the alternatives and the related fees to SinterCast and we will continue to monitor the market impact of these new concepts.