The overarching mission of the Surveillance function is to protect the integrity of Nasdaq’s Nordic market places. Safeguarding the integrity of our markets is not only a regulatory requirement for Nasdaq, it is a necessity to ensure fair and efficient trading, to protect the values of our assets and to support our business model. We believe that upholding a well-balanced and effective regulation and operating a fair and efficient surveillance program adds to the confidence of the market place and contributes to the long term success of Nasdaq.
The Surveillance function is separated from the business units within Nasdaq’s organization and important decisions and processes have been ring fenced, to safeguard integrity. Our Surveillance activities can conceptually be divided in Trading Surveillance and Issuer Surveillance.
Issuer Surveillance verifies and enforces initial and continued listing qualifications of listed companies and other issuers of financial instruments. This includes responsibility for the formal listing process of financial instruments such as equities, bonds, warrants and exchange-traded funds as well as handling all types of corporate actions. The Issuer Surveillance also monitors issuers’ compliance with the disclosure rules of the exchanges to ensure transparent, consistent and fair markets.
Trading Surveillance is responsible for monitoring the trading in all financial instruments on the markets operated by Nasdaq Nordic. The goal of the Trading Surveillance is to uphold market integrity by enforcing the rules of the Exchange and by identifying and referring any matter regarding suspected market abuse. The markets operated by Nasdaq Nordic shall be perceived as fair, orderly, safe, efficient and thereby attractive to investors. Another task for the Trading Surveillance, for most of the markets that we operate, is to resolve matters relating to trading incidents.
EUROPEAN MEMBER SURVEILLANCE
The European Member Surveillance (EMS) is responsible for monitoring that all exchange members' are compliant with Nasdaq Nordics rules and regulations. EMS is responsible for the annual review and the Annual Review Questionnaire that is sent out to all Nasdaq Nordic Members' in August every year. EMS is also responsible to conduct a due diligence review on prospect members when they apply for an exchange membership on Nasdaq Nordic markets. The responsibility also includes to verify that prospect exchange traders fulfils rulebook-requirements in order to start trading on Nasdaq Nordic markets and for members that wish to provide Direct Electronic Access (DEA) to its clients are compliant to conduct such service.
The goal of EMS is to inspire confidence and ensure that the above processes are fair and efficient in order to protect end investors. The established processes that the European Member Surveillance are responsible for can in short be described as: Member monitoring, Member admission, Exchange trader verifications and DEA admissions.
Our listing review determines if an applicant meets the requirements of the market place.
In Nasdaq Nordic, the Surveillance function is responsible for disciplinary procedures.
- Consistent Rulings
These reports describe the main day-to-day activities and achievements within Nordic Surveillance.
The rules and regulations serve an important purpose to sustain confidence in the financial market, enable a common framework for listed companies and protect minority stakeholders such as retail investors.