Nordic-Baltic Review - NORCOUS Academia

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NORDIC BUSINESS ENVIRONMENT All set for a common Text: Antti Lagus Nordic exchange Northern European securities markets are getting ready for new challenges, posed by ever increasing competition and the consolidation of other marketplaces. The real powerhouse in the Nordic-Baltic market is the OMX group. OMX Exchanges consist of stock exchanges in Copenhagen, Stockholm, Helsinki, Tallinn, Riga and Vilnius. The next step on the path to ever closer integration will be the introduction of a common Nordic list where Danish, Finnish and Swedish shares will be quoted on the same platform. – Many steps have already been taken towards Nordic integration, such as the implementation of common trading and information systems, as well as harmonized trading hours, rules, indices and so on, says Jukka Ruuska, President of OMX Exchanges. The next step, which will take place during the coming year, is to present a common Nordic list. – A common list is about visibility, Finnish and Danish shares becoming more visible in Sweden and vice versa, Ruuska explains. Listed companies will benefit from increased visibility, as well as from a larger peer group and improved comparability. According to Jukka Ruuska, a joint list will strengthen the competitiveness of the Nordic region and attract more investors and capital, which will in turn increase liquidity in OMX’s markets. Another planned development is the creation of a common market segmentation 16 Nordic-Baltic Review
“There will be a strong home market that offers a large pool of investors and capital for existing listed companies and new companies that are in need of capital”, says Jukka Ruuska, President of OMX Exchanges. and critical mass to support efficient operations. For OMX the main focus is the Nordic and Baltic region. Ruuska believes that this region represents an optimal size that combines the necessary critical mass with a tangible information benefit. Ruuska explains: – The inefficiency caused by cultural and language barriers becomes higher, when you grow geographically. He adds, however, that there are interesting opportunities in fast-growing areas such as Poland and Hungary. – In due time, these areas will become of interest to us in one form or another. We believe that the regional concept that we are creating in the Nordic countries could well suit other regions’ needs, too. Ruuska adds that when it comes to new listings, OMX’s main focus is on Nordic companies, but companies from other regions are of course also welcome. – We are already very strong in many different sectors, such as information technology and telecommunications. model that will facilitate the sorting of listed companies according to different criteria. – This should help investors find companies that are of interest to them, Ruuska says. Changing perceptions The reasons for the close integration can be found in the nature of the markets. As Ruuska puts it, Nordic securities markets are mediumsized markets that face international competition. OMX has consolidated the main part of the exchanges in the area in order to strengthen the competitiveness of the region. Historically, Nordic exchanges have successfully compensated for their smaller sizes through innovation, cost-efficiency and competitive fees. Ruuska notes that as larger markets and market place operators consolidate, the need for a common Nordic capital market increases. OMX’s vision is therefore to create a Nordic Exchange that attracts investors and strengthens the area’s competitiveness. – Our joint efforts with market participants have already begun to create a perception of Nordic markets as one home market and to provoke increased interest in cross-border investing, Ruuska says. – By making the region more attractive to foreign investors and increased capital flows, I believe that it will become more and more natural in the coming years to think across Nordic borders when considering investment opportunities. A common list will strengthen the competitiveness of the Nordic region and attract more investors and capital. Finding critical mass Today, there is a lot happening in the European stock exchange landscape. In this industry, as in others, it is all about finding the optimal size Strengthening local markets Ruuska finds that private-equity type financing offers another alternative to companies. A well functioning capital market needs all types of professional market participants. – OMX’s role is to be the stock exchange in our local markets. Stock exchanges and privateequity companies complement each other, and together we can turn the Nordic region into a flourishing financial market for Nordic and global investors alike, Ruuska envisions. Ruuska ducks the question, whether Stockholm will become the leading financial center for Northern Europe. Instead, he says that by strengthening the region and creating a Nordic Exchange, the different local markets will also become stronger. – We have different initiatives to develop the markets further and thereby create the best possible environment for our customers. We believe that the Nordic Exchange will be one of the Europe’s leading financial markets, he says. What it will look like in practice, we will see later during the year, when the common list structure and the presentation of companies are introduced. ■ 17
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Nordic-Baltic Review - NORCOUS Academia

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