In Denmark there is a long tradition of trading the certificates of investment funds and other types of collective investment schemes on the exchange according to the same well-known principles and terms as are known from trading in shares.
The pricing mechanism of the trading system ensures that: the private investor can always trade investment fund certificates within the opening hours of the market, that the trading terms are transparent and that the trade is settled in accordance with the principles and rules applicable to listed securities. Trading takes place on the basis of current electronic reports on the net asset values of the individual investment certificates. Thus, transparent and efficient pricing is ensured for the benefit of the investors.
In Copenhagen investment certificates are traded on two different submarkets: 1) The market for investment funds 2) The market for other collective investment schemes
The market for investment funds
The market for investment associations was created as a result of cooperation between OMX The Nordic Exchange and Danish investment funds represented by the Federation of Danish Investment Associations. The market is called ’Investeringsforeningsbørsen’ in Denmark.
The market is for investment funds which are subject to the Act on investment associations, etc. of the Danish financial regulation regime and corresponding foreign UCITS approved investment undertakings. The market is governed by the same stock exchange regulation as applies to OMX the Nordic Exchange in Copenhagen. The Nordic Exchange is only responsible for the operation and surveillance of the marketplace.
In practice, the market for investment associations covers all Danish investment funds offered and marketed to a wider group of investors in Denmark. This combined with access to trading in the same trading system as other securities on the Nordic Exchange enables the investor to trade practically all investment associations via Danish banks, web banks and online stockbrokers.
At the end of February 2007, the market had more than 400 listed sub-funds distributed on about 30 investment associations.
The market for other collective investment schemes
The market aims at other types of collective investment schemes than the ”common” investment funds. Legally, a distinction is typically made between associations approved as so-called section 115 associations of the Danish Act on investment associations and other types of associations not covered by this section. Moreover, there are foreign associations which are not covered by the UCITS Directive.
The listing requirements are specifically adjusted to this type of associations. The trading terms and regulation on this market are the same as those applicable to trading in investment certificates in general.
