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    Nasdaq Commodities Market Surveillance

    Ensuring market rules compliance

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    Market Surveillance Overview

    The main task for Market Surveillance is to monitor the market participants’ orders, trades and reporting of off-order book trades in the financial market. If there is suspicion of any breach of the trading rules, Market Surveillance shall gather information and investigate according to the proceedings described later in this section. 

    Market Surveillance has an important role in building market confidence, and in this context, performs advisory service towards market participants as to the principal and practical compliance of the trading rules. 

    Nasdaq Oslo ASA holds a license as a derivatives exchange under the Norwegian Securities Trading Act. The license is granted by Ministry of Finance and Nasdaq Oslo ASA is under supervision by the Financial Supervisory Authority of Norway, Finanstilsynet.
     
    The clearinghouse, Nasdaq Clearing AB, holds a license from the Swedish Financial Supervisory Authority, Finansinspektionen. 

    Under the Securities Trading Act section 12-5 the exchange is required to monitor the trading activity of its members and report market conduct that might be in breach with legal provisions.

    Market participants must comply with the trading and clearing rules including Market Conduct Rules (Trading Rules - Appendix 6).

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    Market Surveillance Tasks

    The main tasks of Nasdaq Commodities' Market Surveillance can be divided into four main areas.

     

    Reporting of Off-Order Book Trades

    All market participants shall report off-order book transactions to Nasdaq Oslo. The main rule is that the reporting must take place within 15 minutes from the trade agreement time and must include the correct information of the trade. The details are described in the Market Conduct Rules § 2. 

    All market participants shall report off-order book transactions to Nasdaq Oslo. The main rule is that the reporting must take place within 15 minutes from the trade agreement time and must include the correct information of the trade. The details are described in the Market Conduct Rules § 2. 

    Disclosure of Inside Information

    All market participants shall, when in possession, immediately publish all relevant inside information. In general, this covers the information of a precise nature which has not been made public relating directly or indirectly, to one or more products, and which Market Participants would expect to receive in accordance with accepted market practice. The full definition of inside information is described in the Market Conduct Rules § 5. 

    All market participants shall, when in possession, immediately publish all relevant inside information. In general, this covers the information of a precise nature which has not been made public relating directly or indirectly, to one or more products, and which Market Participants would expect to receive in accordance with accepted market practice. The full definition of inside information is described in the Market Conduct Rules § 5. 

    Insider Trading

    Market participants are prohibited from trading when holding inside information. This is valid until the information has been made public as defined in the Market Conduct Rules § 5. 

    Market participants are prohibited from trading when holding inside information. This is valid until the information has been made public as defined in the Market Conduct Rules § 5. 

    Market Manipulation

    Market participants shall not engage in market manipulation as defined in The Norwegian Securities Trading Act and in Enclosure 1 to the Market Conduct Rules.

    Market participants shall not engage in market manipulation as defined in The Norwegian Securities Trading Act and in Enclosure 1 to the Market Conduct Rules.

    View the Nasdaq Commodities Legal Framework page for rulebooks.

    View the Nasdaq Commodities Legal Framework page for rulebooks.

    Market Surveillance Case Proceedings

    Investigation process, organization and reporting

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    Market conduct that appears to be in breach of the market conduct rules will be further investigated and a case against a breaching participant will be opened. Market Surveillance will continue its investigations by gathering information from the relevant market participant(s) and other parties or authorities if relevant.

    If the suspicions cannot be invalidated, a report with findings of suspected breach of legal provisions will be sent to the Norwegian Supervisory Authority (Finanstilsynet).

    Market conduct that appears to be in breach of the market conduct rules will be further investigated and a case against a breaching participant will be opened. Market Surveillance will continue its investigations by gathering information from the relevant market participant(s) and other parties or authorities if relevant.

    If the suspicions cannot be invalidated, a report with findings of suspected breach of legal provisions will be sent to the Norwegian Supervisory Authority (Finanstilsynet).

    If any investigations lead to the conclusion of a performed breach on the market conduct rules at Nasdaq, the case can also be brought forward to the disciplinary committee. This committee is responsible for making recommendations to the Nasdaq Oslo ASA Board of Directors as to issuing adequate sanctions. Any sanction made by the board will then be made public on Nasdaq website.

    Any sanctions made by Nasdaq Oslo can be appealed to the exchange appeal committee, which is a publicly appointed and independent appeal body for administrative decisions taken by Norwegian exchanges and authorized marketplaces.

    If any investigations lead to the conclusion of a performed breach on the market conduct rules at Nasdaq, the case can also be brought forward to the disciplinary committee. This committee is responsible for making recommendations to the Nasdaq Oslo ASA Board of Directors as to issuing adequate sanctions. Any sanction made by the board will then be made public on Nasdaq website.

    Any sanctions made by Nasdaq Oslo can be appealed to the exchange appeal committee, which is a publicly appointed and independent appeal body for administrative decisions taken by Norwegian exchanges and authorized marketplaces.

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    Sanctions issued by Market Surveillance

    Sanctioning

    An investigation that concludes that a market participant has violated the rules can be sanctioned by Nasdaq Oslo ASA, by either:

    • an oral warning
    • a warning in writing
    • a violation charge on the market participant of up to NOK 2.5 million

    In cases where the market participant does not comply with the duty to provide information on request by Nasdaq Oslo in relation to investigations, Nasdaq Oslo may impose a daily charge until the information is provided.

    Market Surveillance regularly publishes reports about performed activities and investigations in the previous quarter. The published reports can be found on the Reports page.

    Any sanctions imposed by Nasdaq will be published after taking effect. See the list of sanctions imposed in the past below.

    An investigation that concludes that a market participant has violated the rules can be sanctioned by Nasdaq Oslo ASA, by either:

    • an oral warning
    • a warning in writing
    • a violation charge on the market participant of up to NOK 2.5 million

    In cases where the market participant does not comply with the duty to provide information on request by Nasdaq Oslo in relation to investigations, Nasdaq Oslo may impose a daily charge until the information is provided.

    Market Surveillance regularly publishes reports about performed activities and investigations in the previous quarter. The published reports can be found on the Reports page.

    Any sanctions imposed by Nasdaq will be published after taking effect. See the list of sanctions imposed in the past below.

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    June 22, 2016

    J. Aron & Company is given a written warning for breach of the Market Conduct Rules

    July 4, 2013

    The Disciplinary Committee's recommendation in the case against MERRILL LYNCH COMMODITIES (EUROPE) LTD - violation of the prohibition against market manipulation set out in the Market Conduct Rules, section 5.1.

    March 4, 2013

    Shepherd Energy AB is given a violation charge of NOK 150,000 for breach of the Market Conduct Rules

    July 7, 2011

    Statkraft Energi AS given violation charge for breach of the Market Conduct Rules

    October 13, 2010

    Lyse Handel AS - Nord Pool ASA issues written warnings for insider trading and breach of disclosure requirements

    September 9, 2008

    Spectron Energy Services AS is given violation charge for breaching reporting rules

    July 4, 2008

    The Exchange Appeal Board decision in Alfa Kraft AB appeal

    June 13, 2008

    Norsk Hydro Produksjon AS - Nord Pool ASA issues a written warning for breach of the prohibition on insider trading in the financial market

    April 25, 2008

    Board of Nord Pool ASA sanctions Alfa Kraft AB for market manipulation

    December 20, 2007

    Imarex Energy AS, ICAP Energy AS and Quality Energy Brokers AS - Nord Pool ASA gives Written Warnings for Breaches of Reporting Rules

    June 28, 2006

    Breach of the reporting rules by ICAP Energy AS

     

    Market Surveillance, Nasdaq Oslo ASA

    +47 6752 8019

    +47 6752 8021

    surveillance.commodities@nasdaq.com

    Market Surveillance Reports