Development of the Finnish stock market

Monday, January 1, 2007

OMX The Helsinki Stock Exchange dates back more than 90 years. Today, it is part of the harmonized cash markets of the Nordic and Baltic countries.

The Helsinki Stock Exchange was founded in 1912. There had been stock exchange activity in Helsinki since the 1860s, but it lacked proper organization and regulation. On April 25, 1912 the governor of Uusimaa province ratified the rules of the stock exchange.

In December 1997, the cash and derivatives marketplace of the Helsinki Stock Exchange and SOM merged to become Helsinki Exchanges, and in 1998 Helsinki Exchanges and the Central Securities Depository (APK) merged to form the HEX Group. During the years 2001-2002, HEX became the majority shareholder of the TSE Group consisting of the Tallinn Exchange, the Estonian Securities Depository and the Riga Stock Exchange, which is the sole shareholder of the Latvian Securities Depository (LCD). In 2003, HEX merged with OM.

Today, about 140 companies are listed on the Helsinki Stock Exchange and there are 44 members trading from Finland and abroad. More than 100 information vendors sell and distribute market information worldwide.

The Helsinki Stock Exchange is part of the OMX Exchanges division within OMX, together with the stock exchange in Stockholm and the stock exchanges and central securities depositories in Tallinn, Riga and Vilnius. The exchange is regulated by the Finnish Ministry of Finance and supervised by the Finnish Financial Supervision Authority.

Towards harmonized markets

In September 2004, OMX Exchanges took a step toward the harmonization of cash markets in the Nordic and Baltic countries. The common Nordic trading platform SAXESS, previously in use at the Stockholm Stock Exchange, was brought into play in Tallinn and Riga also. Simultaneously, trading hours were harmonized between the Helsinki and Stockholm stock exchanges, and so were the Nordic and Baltic trading rules.

Including the OMX Exchanges markets, SAXESS and the common NOREX member rules are in use in seven Nordic and Baltic marketplaces: Copenhagen, Oslo, Iceland, Stockholm, Helsinki, Tallinn and Riga. In 2005, the Vilnius Stock Exchange is also expected to adopt the common trading system.

The harmonization supports the aim of OMX to create an integrated Nordic and Baltic securities market. OMX believes this would increase the efficiency and the competitiveness of the Nordic region as a financial market and provide benefits for issuers, market participants and investors.

Source: OMX