ABN AMRO has issued three more series of short certificates on SOFIX worth a total of 735,000 euros, the bank announced on its website.

Each of the three series consists of 100,000 certificates. The issuing prices for series A,B and C are respectively, 3.48 euros, 2.41 euros and 1.46 euros.

The first short certificates on the local blue chip index were issued 18 October 2007. They were again in three series of 100,000 each (at prices 4.56 eur, 2.03 eur and 3.23 eur). The total value of the certificates back then stood at 982,000 euros.

Another 100,000 certificates worth 243,000 euros (2.43 euros each) were issued on 14 November 2007. With the last issue the total value of SOFIX certificates reaches 1.96 bln euros (based on their issue price).

Short certificates enable investors to profit when SOFIX falls, as has been the case since October.

The first certificates on the index (of the long type – investors rely on advances for SOFIX) were issued by ABN AMRO on 27 October 2007. They were 300,000 in number and their price was 55.12 euros (a total of 16.536 mln euros). They are currently traded at around 68 euros each.

When an institution issues such instruments, it has to decide whether to ensure them by purchasing the main asset.

If ABN AMRO has acquired the number of SOFIX shares respective to the long certificate, the bank may partially close its position (respective to the number of short certificates issued) in order to make its exposition neutral.

SOFIX stocks endured some pressure on January 24, a day before the issue date of the certificates. The index fell 4.36% for the day. This pressure may have been the result of the Dutch bank selling shares.

The blue chip index has lost some 30% since it reached its record high in October.

Certificates fall into the category of derivatives and structured financial products. The first time such were issued and traded on a stock exchange was in 1989. They belong to the so-called traditional retail instruments.

Turnover form trade with certificates amounted to 136 bln euros just in Germany just in the first 6 months of 2007.