Large turnover – high transparency

The bond market in Copenhagen is among the top five in Europe measured by turnover. In 2007 the total turnover was EUR 968 billion (market value, excl. repo), which corresponds to approximately EUR 81 billion in monthly turnover. This turnover was distributed over roughly 2,300 listed bonds that by the end of 2007 had a circulating amount on EUR 393 billion.

The Bond market in Copenhagen is characterized by being one of the most transparent in Europe. Thus, the bond members are, with only a few exceptions, required to report and publish all trades within a few minutes. The result is a market with a high level of price transparency to the benefit of both issuers and investors. Both price and trading data is published on the Nasdaq OMX homepage.

Mortgage Bonds, Government Bonds, Structured Bonds, Corporate and Other Bonds

At NASDAQ OMX - Copenhagen it is possible to list and invest in a wide variety of fixed income products.

Mortgage Bonds

The Danish Mortgage Bonds are unique due to the special way in which property/real estate investments are funded in Denmark. The strengths of these products are:

• The Danish law for issuance of Mortgage Bonds is stringent
• Issuance is very cost-efficient
• The distribution network is extensive
• A global “balance principal” applies
• The principle of low investor risk has been maintained since the 19th century
• So far no investors have lost their invested capital and no mortgage credit institution/mortgage credit bank has ever gone bankrupt.
• A clear majority of the Danish Mortgage Bonds have been rated by internationally recognized rating agencies.

With a circulating amount on EUR 290 billion and 1,877 bonds listed by the end of 2007, the mortgage bond segment accounts for the greater part of the Danish fixed income market. The total turnover of mortgage bonds in 2007, measured by market value (excl. repo), was EUR 722 billion.

Government Bonds

All Danish government bonds and notes can be traded at NASDAQ OMX - Copenhagen. These bonds are characterized as being “low risk securities” that have attracted a significant interest form foreign investors.

The circulating amount of the Danish Government Bonds was EUR 62 billion by the end of 2007. The value has been decreasing during the last couple of years due to lower need for government borrowing in Denmark. The total turnover in 2007 was EUR 177 billion (market value, excl. repo).

Structured Bonds

Throughout the last couple of years NASDAQ OMX - Copenhagen has seen an increasing interest for both issuing and investing in Structured Bonds. Thus, the number of Structured Bonds has double 4 times. We have therefore created a special market for the issuing and trading of these Bonds. The investors can now choose between more than 350 different bonds with a total market value of approximately EUR 10 billion.

By creating a special market for Structured bonds NASDAQ OMX - Copenhagen hopes to increase the transparency for these bonds. Based on the latest years development we furthermore expect this market to grow, with higher turnovers, increasing circulating amount and a higher degree of diversification among the bonds.

Corporate and Other Bonds

NASDAQ OMX - Copenhagen has a special market for corporate bonds, convertible bonds, Covered Bonds (issued by banks) and other bonds. This market is called Corporate and Other Bonds. By having a separate market for these bonds we intend to increase focus on the many different bonds that can be traded at NASDAQ OMX - Copenhagen.