Celebrating 40 Years of Market Leadership in Iceland

From the early days of securities trading to today’s modern, globally connected market under the Nasdaq brand, Nasdaq Iceland has played a pivotal role in shaping Iceland’s economy. This year marks 40 years since its inception allowing a look back at some of the key milestones that have defined its journey as a thread connecting, reinforcing, and empowering the financial ecosystem of the region.   

Connecting Companies and Investors for 40 years

Nasdaq Iceland’s history reflects the evolution of the country's financial system and its path toward internationalization. It's the youngest exchange among Nasdaq’s Nordic exchanges, established in 1985 by the Central Bank of Iceland and a few Icelandic banks. In the early years, trading was limited to government bonds, but the introduction of equity trading in 1991 marked a major milestone in the development of Iceland’s financial markets.

Efforts to modernize and internationalize the market began early. A key turning point came in 2000 when Nasdaq Iceland joined the NOREX alliance of Nordic exchanges, leading to significant improvements in market functionality through the adoption of shared trading and surveillance systems, and the harmonization of rules across participating exchanges in the Nordics.

“Being a small market, international cooperation and strong relationships have always been essential to our development. From the very beginning, there was a clear ambition to modernize the Icelandic market and operate it in line with international best practice, both to support local companies and investors, and to ensure Iceland could participate meaningfully in the global financial ecosystem. That vision continues to guide us today,“ said Magnus Hardarson, President of Nasdaq Iceland.

From the early days of establishing and building the market in Iceland to forging international connections, the exchange has played a key role in the country’s economic development. It supports company growth by providing access to capital through listings and public offerings, enabling businesses to fund innovation, scale operations, and boost competitiveness. The market also serves as an important financing platform for the government and municipalities, helping fund public projects such as housing and infrastructure.

“From the start Nasdaq Iceland has connected companies with investors to support growth and has been a vital source of capital for the Icelandic government, supporting sovereign bond issuance and contributing to the financial stability and development of the nation,” said Hardarson

In 2000, the number of companies in the Icelandic market reached its peak with 75 listed companies, many of them in the fisheries sector. At the same time, around 30,000 retail investors held shares, one of the highest per capita participation rates in Europe. Today, 32 companies are listed, five of which are on the First North growth market, and seven that are dual listed. Despite fewer companies than in 2000, the overall market capitalization has grown 2½ times adjusted for inflation.

In 2003, Nasdaq Iceland initiated a partnership with the Faroese Securities Market (VMF), paving the way for Faroese securities to be listed in Iceland. This collaboration resulted in four Faroese companies being listed on the Icelandic market.

In 2006, the Exchange became part of the Nordic exchange group OMX, which later merged with the U.S. technology company Nasdaq. Today, the Exchange operates under the name Nasdaq Iceland and is part of Nasdaq Europe, alongside exchanges in Stockholm, Helsinki, Copenhagen, Tallinn, Riga, and Vilnius.

“By joining Nasdaq, the Icelandic market was elevated to a new level of visibility, credibility, and connectivity. It opened doors for Icelandic companies to reach a broader investor base, benchmark themselves globally, and attract foreign capital. This integration did not only strengthen the infrastructure but also positioned Iceland as a dynamic player in the Nordic financial ecosystem.” said Hardarson.

Building On Market Momentum

Over the years, extensive reform efforts have strengthened the regulatory framework, broadened investor participation, and improved public access to market trading. New listings have supported market development, and there have been numerous dual listings.

In 2022 Iceland was upgraded by FTSE Russell to "Secondary Emerging" classification and included in its Emerging Market indices, increasing the country’s visibility among international investors. Although significant progress has been made, ongoing efforts continue to strengthen participation from both domestic and foreign investors and to attract new companies to the market.    

“It is important for the market’s long-term strength to attract diverse capital. Dual listings on Nasdaq Iceland have become a powerful bridge, connecting Iceland and global capital, and deepening international financial integration. They reflect our ambition to support our listed companies through a strong local market while facilitating global reach to international markets,” Hardarson emphasized.

Retail investor participation surged at the onset of the pandemic and reached a new high with the Íslandsbanki offering in spring 2025. Today, more than 11% of the population or around 45,000 individuals own shares, reflecting a growing culture of investment and financial engagement in Iceland.

Looking Ahead

As Nasdaq Iceland continues its journey, it remains deeply committed to Nasdaq Europe’s overall mission of empowering economic opportunity in the region, dedicating itself to being a catalyst for innovation, growth, and long-term prosperity.

"We see Nasdaq Iceland continuing to play a meaningful role in supporting Icelandic companies and providing a multitude of investors access to diverse investment opportunities.” said Hardarson. “Our integration with the broader Nasdaq network gives us the tools and reach to connect local ambition with global opportunity. We aim to build on our strengths, supporting sustainable growth, attracting diverse capital, embracing innovation, and contributing to the resilience of the Icelandic economy.”

Learn More About Nasdaq Iceland.