The Financial Supervision Authority designated the minimum number of shares allowed for trading on a regulated market
The Financial Supervision Authority designated the minimum number of liquid shares allowed for trading on a regulated market, and additional liquid shares. Pursuant to article 22 subsection 6 of European Commission regulation no 1287/2006 that is directly applicable in the Member States of the European Union, every competent institution must ensure that a list of all liquid shares shall be compiled and disclosed, for which they shall be a relevant competent institution.
The designation of additional liquid shares will bring along an additional obligation for investment companies to disclose trade information, which will increase the activeness and transparency of trading with shares. This will improve awareness of the actual levels and volumes of the transactions made with the shares, promote competition in service providing between places of trade, through which the options of investors are increased and transaction costs reduced, and the price formation process for a service will become more transparent.
Currently, there are no shares in Estonia that would correspond to the conditions describing the liquid shares stipulated in Article 22 paragraph 1 of the regulation. Pursuant to Article 22 paragraph 3, if a market has no liquid shares for the purposes of the regulation, the Financial Supervisory Authority as a competent supervisory agency of a Member State shall have the right to designate the shares to be traded on a regulated market, which are deemed to have a liquid market.
The Financial Supervision Authority has designated a minimum of 3 liquid shares to be traded on the regulated market, and additional liquid shares shall be:
- shares of Olympic Entertainment Group
- shares of Tallink Grupp AS
- Eesti Telekom AS
The decision concerns the investment companies and credit institutions that provide investment services and are systematic executors with respect to the liquid shares designated by the Financial Supervision Authority. Currently, there are no such investment companies, so the decision does not at the moment concern the interests of any persons, but may concern these in the future by imposing additional obligations for the persons who have designated themselves as systematic executors, upon disclosing information.