The new model will facilitate the order input for the brokers: to trade with debt securities, they will have to indicate yield to maturity in buy or sell orders, and the orders will be automatched according to the yields. As previously, the brokers will have to specify the nominal value of securities in the orders. The new model may be applied for trading of short-term debt securities and fixed rate long-term debt securities.
The new model will operate alongside with the existing one, where the orders are not matched automatically, and the price has to be quoted in percentage of nominal, including accrued income (the so-called "dirty price"). The trading of debt securities with variable rate and contract deals with non-standard settlement date will be possible only in the previous model. The launch of the new market segment on August 1, 2005 will involve the changes of debt securities trading codes in the Baltic markets.