TRADING
The OMXH25 ETF is a publicly traded fund listed on the Helsinki Stock Exchange.
Investors can buy and sell fund units in real-time on the stock exhange any time
during the trading hours. A safe-keeping account is needed for the fund units.
The fund units aren’t subscribed or redeemed in the traditional way, since the
trades are always done on the stock exchange. The investor pays normal brokerage
fees for the buy and sell orders.
Trading with OMXH25
ETF units is possible throughout the exchange opening hours. The unit
price develops in real-time like stock prices.
Beside is a list of Finnish brokers specialized on online brokering.
Members of the Nordic Exchange
Large subscriptions through a primary broker
The
Fund Management Company defines a creation unit each banking day, which
consists of a stock basket consisting of the different stocks in the
index in the right proportions and a cash component.
One creation unit equals to 25.000 fund units. Subscriptions can be done
with multiples of the creation unit (minimum subscription is 25.000
units) via a primary broker. In Finland, in order
to avoid stamp duty, one has to do the stock trades on the exchange.
Therefore all creations and redemptions in the OMXH25 Exchange Traded
Fund are made via Authorized Participants, i.e. primary brokers.
In a primary subscription, the subscriber receives the units in exchange for
the stock portfolio and the cash component defined in the creation unit.
The binding subscription must be done before 3:00 p.m. Finnish time. The
subscriber needs to make sure that he/she holds the stock portfolio
needed for the subscription and that the cash component has been
transferred to the primary broker before the deadline.
In the case of a redemption, the redeemer receives the stock portfolio and the
cash component in exchange for the redeemed units. The redemption order
must be presented to the primary broker before 3:00 p.m. Finnish time.
The subscription and redemption process through a primary broker is
described in more detail in §7 of the rules of the fund.
Fund rules
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