Issuer: Banks, companies, mortgage institutions, municipalities, county council as well as the Swedish Central Bank in the event of money market interventions in the banking system.

Type of debt instrument: current bearer instrument.

Lifetime: Up to one year. Lifetimes of more than one year are offered in exceptional cases.

Issues: Issues are normally carried out on request through a bank or brokerage firm and as part of a certificate program. OMX Nordic Exchange lists the certificate program and not the individual certificates. The reporting is done on an aggregated level for all certificates that mature in a certain month.

Secondary market: Liquidity in certificates is generally somewhat weak, although it is good for mortgage certificates. The secondary market is made up of a telephone-based market where some banks and securities firms act as market makers, or market guarantors.

Valuation: The setting of prices for instruments is carried out as with simple annual interest. Since certificates are discount instruments, the buyer of a certificate does not pay the nominal value of the certificate, but instead pays the nominal value discounted with the market rate (simple annual interest). The calculation of the discounted amount, the cash amount, is the same as for Treasury bills. Please refer to the following formula:

P = present value
N = nominal value
r = market rate (simple annual interest)
d = remaining time-to-maturity in actual days (day-count base: actual/360). The day-count base 30/360 may be applied for certificates issues prior to 1 April 2001.

Delivery: The settlement day and delivery for certificates is two banking days after the transaction day.