Nyherji hf (NYHR) has made an agreement with Landsbankinn hf regarding market making for the issued shares of NYHR. The agreement becomes effective on October 31st 2011 is valid until end of day October 31st 2012, however Landsbankinn can terminate the agreement with one month's notice. The purpose of the agreement is to improve liquidity and to enhance transparent price formation in the NYHR shares on NASDAQ OMX Nordic.
As a market maker, Landsbankinn is obligated to submit in its proprietary account daily bid and ask orders for NYHR shares, for a minimum of 200,000 shares at a price determined by Landsbankinn. The maximum bid/ask spread may not exceed 5.0%. New orders shall be placed within 15 minutes in succession to prior orders getting filled. If the intraday price of NYHR moves more than 10% then Landsbankinn can double the bid/ask spread for the remainder of the day. Under the agreement, Landsbankinn is obligated to provide liquidity for up to ISK 10 million in market value daily.