LATVIAN SECURITIES MARKET
16.3 ADMISSION TO TRADING OF SHARES ON NASDAQ RIGA STOCK EXCHANGE The Baltic stock exchanges have a common presentation of all listed Baltic companies on a common list, the companies on which are grouped in the lists described below. In legal terms, the companies are listed on their home market, i.e. the exchange in Tallinn, Riga or Vilnius, and supervised by the local financial supervisory authority. The structure of the lists of securities traded on the Nasdaq Tallinn, Riga and Vilnius exchanges is as follows: • Baltic Main List; • Baltic Secondary List; • Baltic Bond List; • Baltic Fund List; • First North (alternative marketplace, multilateral trading facility, not a regulated market).
admission requirements (free float, capitalisation or others) for the Baltic Main List. Baltic Funds List. The Baltic Funds List contains the investment fund units or shares of collective investment subjects that are listed and traded on the Baltic exchanges in a manner similar to equities. Baltic Bond List. The Baltic fixed-income instruments are presented in a joint Baltic Bond List. These fixed-income instruments include Latvian and Lithuanian government bonds, and corporate and mortgage bonds of different maturities. Since 2015, the first Estonian corporate bonds have also been listed and admitted to trading. Listing of and trading in fixed-income instruments is possible in EUR and in certain other currencies.
Baltic Main List. The Baltic Main List is a line-up of all bluechip companies listed on the Tallinn, Riga and Vilnius stock exchanges. To be eligible for inclusion, a company must have 3 years of operating history, an established financial position, market capitalisation of not less than EUR 4 million, with reporting according to the IFRS, and a free float of 25% or worth at least EUR 10 million.
First North. First North is a multilateral trading facility (MTF), also known as an alternative market, operated by the different exchanges within Nasdaq. It does not have the legal status of a regulated market. Companies on First North are subject to the rules of First North and not the legal requirements for the admission to trading on a regulated market. Baltic First North is divided into two separate lists – First North Baltic Share List and First North Baltic Bond List.
Baltic Secondary List. The Baltic Secondary List comprises companies that do not meet quantitative
16.4 TRADING ON NASDAQ RIGA STOCK EXCHANGE Nasdaq Riga Stock Exchanges employ two trading systems: • INET Nordic – the electronic trading system used for trading in equity-market instruments on the regulated market and the First North; • Genium INET – the complete electronic multiasset trading system used for trading in fixedincome instruments on the regulated market as well as for the execution of auctions and special procedures, such as tender offers, public share sales and IPOs.
Commonly recognised as the most sophisticated trading platform in the world, INET is the proprietary core technology utilised across Nasdaq’s global markets. Transactions can be effected in two ways – automatic matching, which means that buy and sell orders are matched by the trading system automatically according to price, displayed volume and time priorities; and manual trades – trades negotiated between stock exchange members outside of the trading system, with brokers entering the deal in the trading system within three minutes after its conclusion.
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