Following a thorough evaluation and broad-based consultations, the management of Amsterdam Exchanges expects to reach a decision by mid-December of this year regarding changes in the Trading System Amsterdam (TSA). This was revealed in the trading system evaluation plan published today by AEX-Effectenbeurs. The measures are designed to improve the system and optimise the exchange's competitive strength during the transition to the age of the Euro.

TSA was introduced in September of 1994 in order to strengthen the international competitive position of the stock exchange. In recent years, the exchange has successfully recovered the market share it lost to London in the early nineties. Freedom in the wholesale trade and a vigorous central market are the foundations of this trading mechanism. It was agreed at the time that the system would be re-evaluated in the autumn of 1997 and adapted when necessary.

Discussion Points

In the first instance, TSA will be evaluated in the light of the primary objective of Amsterdam Exchanges: to maintain a transparent and liquid securities market with fair and transparent price formation that ensure the best possible price for all categories of investors. In principle, all aspects of the trading system for equities are open to discussion. It is anticipated that the discussion will focus on points such as the retail obligation, the wholesale-retail link, the role of the hoekman and the functioning of specific facilities such as ASSET and AIDA.

Discussion Document

At present, the necessary research and study material is being compiled and internal consultations are scheduled for the coming weeks. AEX management's proposals for the improvement of the trading system will be published at the end of October in the form of a discussion document. A broad-based round of consultations will then be held in November, during which the exchange's other consultative bodies, user groups and others who are directly or indirectly concerned will be given the opportunity to bring forward their experiences and wishes. Parliamentarians and the interest organisations such as the Netherlands Association of Stockholders will also have the opportunity to voice an opinion.


In connection with this evaluation, the functioning of the TSA is currently the subject of a detailed analysis which is based on three studies commissioned earlier this year. The British research bureau MORI has interviewed domestic and foreign institutional investors. British intermediaries, banks, securities brokers and AEX-Optiebeurs market makers. Coopers and Lybrand were asked to compare TSA's performance with the trading systems of other financial centres such as London, Paris, New York and Stockholm. This comparison focuses on the spread and the depth of the market. In addition, the Secondary Market Department of the AEX-Effectenbeurs has conducted an internal analysis.

A full description of the TSA evaluation and consultation can be obtained from the secretariat of Public Relations Department of Amsterdam Exchanges.

For further information contact Thom Hoedemakers, Amsterdam Exchanges AEX Amsterdam: 00 31 20 550 4540 or Paddy Manning, St James Corporate Communications London: 44 171 436 4101.

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