The pattern of sales and purchases that is emerging demonstrates that there is both an appetite to sell as well as to buy new DRs. The level of sell orders is not yet fully compensated by the level of buy orders. The second wave of COVID-19 infections, more severe and sooner than expected, is understandably an important factor for many DR-holders when considering whether to buy or to sell.
To facilitate transactions in a controlled way, the total value of Depository Receipts that may be offered for sale by any Depository Receipt holder can be restricted. In order to create more time for new purchases to materialise across the countries in which Triodos operates in and to restore a balanced trading pattern, Triodos Bank N.V has decided to restrict the maximum value of the weekly amount that may be sold per investment account. From Tuesday 27 October 2020, 8.00 hrs GMT (9.00 hrs CET), the maximum value of the amount of Depository Receipts which can be sold per investment account per week is set at EUR 1,000.
We will monitor the sales and demand patterns carefully and may change this amount again in future.
As you know, Triodos Bank facilitates transactions to and from Depository Receipt holders, by (re)purchasing and (re)selling Depository Receipts. Depository Receipts are directly linked to the capital of the bank. The amount of Depository Receipts the bank can repurchase is limited by regulation. The regulatory amount of Depository Receipts which Triodos Bank can repurchase to compensate for periods when more Depository Receipts are sold by DR holders than are being bought is EUR 36 million. Triodos Bank publishes the amount of Depository Receipts it has repurchased. This enables Depository Receipt holders to see what room Triodos Bank has available to repurchase Depository Receipts in case of an imbalance between supply and demand. This information can be found under ‘Trade Information’ here.