Emissions trading

Pricing – how it works

The pricing of issuance trading depends on supply, demand and other factors that may affect the market price.

Why buy? 

If you buy, you get the opportunity for a larger part of Lantmännen's future return. 

 

Why sell? 

If you sell, you will receive cash. You may want to get the money out earlier as a departing member or invest it in something else. 

 

How is the price set? 

After each trading period, the final transaction price is set. All orders that go into business during an order period receive the same price, stated as a percentage, where 100 percent corresponds to the face value. 

 

Process 

1) Compilation of orders: After the end of the order period, SKM (Svensk Kraftmäkling) compiles all approved buy and sell orders that have been received. 

2) Sorting of orders: buyand sell orders are sorted based on the prices that buyers and sellers have entered in their respective orders.  

3) Matchingprocess: the buyers are then matched against each other in so-called trading items. You start with the buy order with the highest price and match it with the sell order that has the lowest price. After that, the matching continues in pairs until all options are exhausted. 

4) Determination of the Sale Price: TheSale Price is then set by SKM based on the last matched orders. All transactions during the period will be made at this price. 

  • Sell orders with prices above the transaction price are not included in the trade. 
  • Buy orders with prices below the transaction price are also not included.

If there is an excess of sell or buy orders at the same rate as the transaction price, they are sorted by time of arrival.  

Example of buy and sell orders

Buy order on 110: If the transaction price lands at 108, you can buy at the price of 108. If the transaction price is 112, there will be no deal. 

Sell order of 110: If the transaction price lands at 108, you are not allowed to sell. If the transaction price is 112, you can sell at the price of 112. 

How do I set the price? 

Salesperson: Determine the lowest price you are prepared to sell for. Your order goes into trade at the price you specified or higher. 

Buyer: Determine the maximum price you are prepared to buy for. Your order goes into trade at the price you specified or lower.