Creation of a strong integrated nordic and baltic securities market
1 / 31

Creation of a strong integrated Nordic and Baltic securities market - PowerPoint PPT Presentation

  • Uploaded on
  • Presentation posted in: General

Creation of a strong integrated Nordic and Baltic securities market. November 15, 2004. Welcome and introductionHans-Ole Jochumsen President & CEO, CSE The OMX perspectiveMagnus Böcker President & CEO, OMX The CSE perspectiveHans Ejvind Hansen

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

Download Presentation

Creation of a strong integrated Nordic and Baltic securities market

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript

Creation of a strong integrated Nordic and Baltic securities market

November 15, 2004

Welcome and introductionHans-Ole Jochumsen

President & CEO, CSE

The OMX perspectiveMagnus Böcker

President & CEO, OMX

The CSE perspectiveHans Ejvind Hansen

Chairman of Board of Directors, CSE

Transaction overview andJukka Ruuska future governancePresident OMX Exchanges

Danish marketplace perspectivesHans-Ole Jochumsenand timingPresident & CEO, CSE

Q & A’s

Today’s agenda

The OMX perspective

Magnus Böcker

President and CEO, OMX

Operations in 13 countries, 1 460 employees

Exchange operations in Sweden, Finland, Estonia, Latvia and Lithuania

500 listed companies

124 members

More than 100 global technology customers

Revenue Jan-Sept 2004 SEK 2,319 m

Operating income Jan-Sept 2004 SEK 541 m

Listed on the exchanges in Stockholm and Helsinki

OMX in brief

To create values and benefits for customers and shareholders

Natural step in OMX’s strategy of an integrated Nordic Baltic securities market

Enhance strategic position

Merger rationale

European stock exchangesValue of cash equity trading, Jan-Oct 2004, EURbn

Oslo Börs

OMX Exchangesincl. CSE


Borsa Italiana

Spanish Exchanges

Deutsche Börse


London SE

Source: FESE

European derivatives exchangesEquity derivatives trading volume, Jan-Oct 2004

otob (Austria)

WSE (Poland)

Oslo Börs

ADEX (Greece)

Borsa Italiana

Spanish Exchanges

OMX Exchanges*incl. CSE



Million contracts

*Finnish options traded at Eurex are included in the statistics of OMX Exchanges

Market trends

  • Structural growth in trading equities and derivatives

  • Consolidation and implementation of Nordic strategies among market participants

  • Increased demand for on-exchange trading and central clearing services

  • Increased competition among exchanges

A higher degree of infrastructural integration and transaction efficiency will be required

Increased efficiency = higher liquidity

End user costs















Turnover velocity


Source: FIBV, Elkins McSherry, McKinsey

OMX Exchanges – Market integration process

A single market



One access point

One order book

One rulebook

One settlement system

One clearing system

One trading platform

The CSE perspective

Hans Ejvind Hansen

Chairman of CSE’s Board of Directors

Natural next step in CSE’s strategy

The NOREX Alliance - a strong solution for CSE

Major improvements of Danish marketplace for the past 7 years

For a further development of the Danish securities market a new approach and governance structure is necessary

The CSE perspective

Potential higher turnover in shares


The timing is right

The European exchange landscape is transforming and getting more competitive

The OM-HEX merger has been successfully completed

The advantages of the alliance model have been harvested

The conditions are right

New initiatives will benefit from consolidation of management resources

Danish interests and marketplace advantages are safeguarded

The price is attractive

A strategic decision

Transaction structure and future governance

Jukka Ruuska

President, OMX Exchanges

Total value of CSE DKK 1,220 m including net cash of DKK 258 m

Existing CSE shareholders may choose between:


Newly issued shares in OMX

A combination thereof

However, the proportion of new shares will correspond to a max value of DKK 500 m

If maximum no of shares are issued, CSE shareholders will own 5.8% of OMX (OMX share price of SEK 85)

Transaction terms and structure

Due diligence

Minimum 90% acceptance from CSE’s shareholders (with possibilities to complete the transaction at lower level)

OMX EGM approval

Necessary regulatory approval

Transaction conditions


Exchanges within OMX

Advisory Committee

To secure continued input from the Danish market participants an Advisory Committee will be established

The Advisory Committee shall consists of representatives of members and issuers (50% issuers, 50% members and 1 independent chairman)

The Advisory Committee must be consulted about material changes to regulatory issues for which CSE is responsible. Material changes to disclosure requirements for issuers cannot be introduced if a majority oppose.

Advisory Committee

OMX Board of Directors

CSE’s proposal for Danish representation

Ownership structure, OMX (October)

Ownership structure, CSE (October)

Advantages to the Danish marketplace

Hans-Ole Jochumsen

President and CEO, CSE

Operations synergies - use of best practice

New products and services opportunities





More efficient decision making

Potential in developing a fully integrated market

Improved long-term competitiveness

“Business as usual” – Danish regulation, supervision and disclosure requirements maintained

Danish self-regulation and Advisory Committee

Danish representatives on OMX and OMX Exchanges board of directors

Danish interests safeguarded

Continued local appeal to local investors

Danish segments are maintained (KFX, MidCap+, SmallCap+ etc)

Danish organisation to serve the Danish customers

A Danish stock exchange with significantadvantages

Danish securities market becomes part of international liquidity pool – larger home market

Transparent Nordic market with easy access – more members

Nordic benchmark indices

Nordic product development

Increased liquidity and trade

New opportunities in an integrated Nordic marketplace

Preliminary timetable

Signing of Combination Agreement December

Prospectus made publicDecember

Acceptance periodQ1, 2005

OMX Extraordinary General MeetingQ1, 2005

Completion Q1, 2005

Announcement of new organizationQ1, 2005

Preliminary timetable

  • Login