Financial Supervision Authority designated supplementary liquid shares admitted to trading on the regulated market
Financial Supervision Authority Designated Supplementary Liquid Shares Admitted to Trading on the Regulated Market.
In accordance with Regulation 1287/2006 of the European Commission, the Financial Supervision Authority must ensure that at least once a year a list of all liquid shares admitted to trading on the regulated market is compiled and disclosed.
The designation of liquid shares entails for investment firms the obligation to disclose additional trading information, whereby the activity and transparency in the trading of shares increases, providing a better overview of the actual levels and volumes of transactions effected with shares. The objective of the designation of liquid shares is to promote competition between trading venues, whereby options for investors are increased, transaction costs are reduced and the price formation process is more transparent.
At this point in time, there are no shares in Estonia that meet the requirements stipulated in the cited Regulation delineating liquid shares. If there are no liquid shares for the purposes of the Regulation, the Financial Supervision Authority as the competent supervision agency of the member state will be entitled to designate from amongst the shares admitted to trading on the regulated market those deemed to have a liquid market, or supplementary liquid shares. The number of supplementary liquid shares must not exceed the previously specified minimum number. By its resolution adopted in March 2008, the Financial Supervision Authority has set the minimum number of liquid shares admitted to trading on the regulated market at three shares.
In accordance with the calculations carried out under the terms in Article 33 of the Regulation of the European Commission, also during the period of 1 April 2009 to 31 March 2010, the sufficient minimum number of liquid shares may be deemed to be three shares, accounting for approximately 60% of the average daily turnover of the market transactions in shares traded daily.
During the period of 1 April 2009 to 31 March 2010, the supplementary liquid shares shall be as follows:
- AS Tallink Grupp shares (EE3100004466)
- Olympic Entertainment Group AS shares (EE3100084021)
- AS Eesti Telekom shares (EE3100007220)
The designation of supplementary liquid shares considered both the average daily turnover of shares and the number of shares held by minority investors, and its monetary value as at 31 December 2008.
The resolution pertains to investment firms and credit institutions providing investments services constituting systematic executors, with respect to the liquid shares designated by the Financial Supervision Authority. At this time, there are no such investment firms, thus the resolution does not actually pertain to the interests of any persons currently but may pertain to them in the future by imposing on persons who have defined themselves as systematic executors additional obligations in the disclosure of information.
The calculation results and share classification are available from the database of the Markets in Financial Instruments Directive MiFID at http://mifiddatabase.cesr.eu