The Danish Securities Council issued the executive orders in the spring of 1996, cf. Appendix 1, under a considerable pressure of work since the issue was to be completed by 1 May 1996. Therefore, the rules were largely a copy of the previous rules. In this light the Danish Securities Council expects a renewed issue of executive orders during 1998/1999. Thus, in the first half of 1998 the plan is to issue a new Executive Order on the Reporting of Transactions in Securities Listed on a Stock Exchange etc. and a new Executive Order on Prospectuses at the First Public Offer of Certain Securities.

2.1.1 Supervision of the market, topics considered, etc.

In 1997, the Danish Securities Council was notified of rules issued by the market operators the Copenhagen Stock Exchange (rules on option, futures and forward contracts listed on the Copenhagen Stock Exchange, rules governing trading on the Copenhagen Stock Exchange, rules for members’ reporting of transactions to the Copenhagen Stock Exchange, rules for non-members’ reporting of transactions to the Copenhagen Stock Exchange, rules for the reporting of transactions to the Copenhagen Stock Exchange for non-members with a special reporting status and guidelines for the publication of real-time trading information and calculation of prices etc. on the Copenhagen Stock Exchange (The Copenhagen Stock Exchange’s Rules of Ethics)), the Danish Securities Centre (rules governing clearing and settlement) and the FUTOP Clearing Centre.

The consideration of the Rules of Ethics governing stock exchange operations has given rise to general questions with regard to the principles of settlement of transactions in listed securities, for instance about the contents of the so-called "best execution" concept. According to section 19 of the Danish Securities Trading, etc. Act, a stock exchange is to lay down Rules of Ethics governing stock exchange operations. It appears from the commentaries on the Act that the Rules of Ethics must contain rules on best execution. According to the commentaries, this means, among other things, that the price at which a securities dealer executes the investor’s order must not differ materially from the price fixed on a stock exchange because the profit of the securities dealers must be known to the customer in the form of brokerage and the like and must not be concealed in the price.

In the light of the experience gained from the new rules, which come into operation on 1 January 1998, it is the intention of the Danish Securities Council in 1998 to commence work on laying down more general rules in pursuance of section 3 of the Act on good securities trading practices.

Based on a report of 12 December 1997 from the department of the Danish Ministry of Economic Affairs on section 31 of the Danish Securities Trading, etc. Act, the Danish Securities Council informed the Danish Minister for Economic Affairs that the Council recommends that the contents of the provision be reconsidered in the light of existing experience from both Denmark and abroad.

In the past year, the Danish Securities Council also considered many general topics and issues some of which have led to specific decisions, see below.

In connection with the issue and administration of the Executive Order on the Reporting of Transactions in Securities Listed on a Stock Exchange, etc.,

the extent and the contents of the obligation to report have been discussed as well as the possibilities of granting exemption to small and medium-sized securities dealers, primarily banks, for whom a direct obligation to report will be too onerous. The Danish Securities Council has decided to maintain a general exemption practice in relation to banks so that exemption can be granted if the turnover in listed securities does not exceed DKK 1 billion per year and provided that the management of the bank has issued a declaration that securities transactions are made through a securities dealer under an obligation to report. Exemptions are granted for a three-year period expiring in March 2001.

At April 1998, 113 undertakings had been granted exemption or exception from the obligation to report while the application of four undertakings had been refused because of their turnover figures. The securities turnover of the 113 undertakings in 1997 amounted to less than 1% of the turnover on the Copenhagen Stock Exchange in the same period.

In 1997, the Danish Securities Council also considered a number of offer prospectuses, cf. Appendix 2, in pursuance of the Executive Order on Prospectuses at the First Public Offer of Certain Securities. The prospectuses have been published through the information system of the Danish Commerce and Companies Agency.