The NASDAQ OMX Baltic Exchanges introducing Volatility Guards


Starting September 27, 2010 the NASDAQ OMX Baltic Exchanges together with the
NASDAQ OMX Nordic Exchanges will introduce Volatility Guards to reduce the
likelihood of trading incidents. 

When the Volatility Guard is triggered, continuous trading is halted on the
specific order book followed by an auction period with no auto matching. The
auction period always ends with uncross. Right after uncross the order book
moves into continuous trading again. The Volatility Guards come into two forms: 
•	Dynamic Volatility Guard - utilized if an order deviates too much in
percentage from the last sale price. For all Baltic shares 10% threshold
applies. The length of the auction is 60 seconds. 
•	Static Volatility Guard - utilized if an order deviates too much in
percentage from the reference price, which is normally the day's opening price.
For all Baltic shares 15% threshold applies. The length of the auction is 180
seconds. 

There will be no auction triggered if there is less than 240 seconds before the
scheduled closing auction. 

NASDAQ OMX Baltic exchanges will continue to improve trading model and
practices in order to maximize the quality of trading environment. 


Market Services Department
+370 5 219 57 07