RIGA - The Riga Stock exchange has changed its
legal name to NASDAQ OMX Riga.
The decision to change the name of the Riga
Stock Exchange was taken to reflect the merger with the worlds largest
exchange company, NASDAQ OMX, and emphasize its compliance with modern and
trusted public securities market standards, respected by businesses and
investors all over the world.
Together with the name change and full
merger with the NASDAQ OMX group, the exchange also symbolically celebrates
15 years of its operations and defines its future targets that will uncover
opportunities for Latvian businesses to attract international investors
and increase its visibility.
"Looking from the outside perspective
of foreign businesses and investors, the integration in the NASDAQ OMX
group and our new name is a sign of quality and security. Both the Latvian
state and business will be in need of extra funds to overcome the crisis
and restore the economy, and that's one of the main reasons why both now
and in the future it's important to assure foreign countries that Latvia
is a dependable place for business. Our securities market has gained more
reliability. Businesses, if they wish for it, have gained an opportunity
to attain higher visibility in Europe and the United States," explainsDaiga Auzina-Melalksne, president of NASDAQ OMX Riga.
She believes that since its foundation
15 years ago, the exchange in Riga has seen very significant development.
A modern and reliable exchange with a wide array of services has been created
from scratch; however, the biggest challenges are still ahead. There
is significant potential for employing the exchange to develop and help
the Latvian economy, but it can only do so with the cooperation and the
goodwill of the state.
"The current crisis creates an opportunity
for our country to change for the better and enter a new phase of development.
Both the current and the future governments need to set a unchanging priority
for using the funds of Latvian residents to develop Latvian businesses
and to increase the trust and investments of foreign investors in Latvia.
Thanks to the fact that our international stakeholders are represented
in Latvia, the investors' trust in the country has increased steadily
for a long time. Even though this trust has fallen dramatically during
the last year, our presence in the NASDAQ OMX group creates an opportunity
for Latvia to get noticed and perceived in a positive light. It is prestigious
for a country to have a company like this represented in Latvia. A smart
state will use it," Auzina-Melalksne said.
"The stock exchange is a good wehicle
for inflow of foreign investments, and Latvia, being a small country, is
in critical need of foreign capital," said Karlis Cerbulis, the first
president of the Riga Stock Exchange and one of its founders, now the
Senior Vice President of U.S. company NCH Capital.
He also noted that,
in a time of crisis, feeling secure very important for investors and theNASDAQ OMX brand of creates a more understandable and more secure impression
for the country. The exchange also plays a very important role in shaping
the country's image.
The second president of the exchange,
Uldis Cerps, now Director of Prudential Supervision at the Swedish
Financial Supervisory Authority, said that it has historically been important
for the exchange to create a reliable infrastructure to meet the highest
standards and in Riga this target has been met successfully from the very
beginning.
"The exchange helps to develop the national
economy, but development isn't only in the hands of the market. It needs
a corresponding state policy of support," said Guntars Kokorevics,
third president of the exchange, now the representative in Latvia of
the French energy company Dalkia. He, too, said that for foreign businesses
and investors, the merger with NASDAQ OMX defines quality and security.
"The exchange has increased transparency
in the country. We have purposefully worked to achieve best business practices
to be a norm, not an exception," said Auzina-Melalksne, the
current president. She also stresses that the state and businesses
will require funds in the future, and when the situation improves in the
markets, listing can make it easier to attain extra capital. This opportunity
still has potential both in stocks and bonds segments. She also notes
that, thanks to listings and exchange auctions, Latvian pension funds can
easily make investments in Latvian bonds and corporate securities, thus
specifically supporting Latvian economy.
NEXT STEPS
"The current crisis has substantially
reduced investor trading activity in our market but when the economic situation
improves, it will return," Auziņa-Melalksne forecasted. She said that
in the current situation the exchange needs to maintain the market quality
standards 's appeal and transparency, and continue the work on development.
As next steps in the development of the exchange and securities market, Auziņa-Melalksne mentions the following:
Introducing trading and settlement in euros
that is more in favour to foreign investors,
Introducing a new trading system in the
Baltics common with the United States,
Continuing both the investor and company
education programs,
Development of proposals for the Cabinet
of Ministers.
ORIGIN OF THE BRAND
U.S. exchange NASDAQ (National
Association of Securities Dealers Automated Quotations) was founded on Feb. 8, 1971. The Nordic and Baltic trading company was
created in 2003 by the merger of Sweden Stock exchange OM (Aktiebolaget
Optionsmäklarna) and the Helsinki Stock exchange HEX. The OMX group
included the Riga, Tallinn, Vilnius, Helsinki, Stockholm, Copenhagen, Iceland
and Armenia stock exchanges.
ABOUT THE NASDAQ OMX GROUP, INC
The NASDAQ OMX Group, Inc. is the world's
largest exchange company. It was created on Feb. 27, 2008,
by the merger of NASDAQ and OMX. Both NASDAQ and OMX are relatively young
exchanges that have become leading members of the exchange industry in
a short time and have created one of the most known brands in the world.
Currently NASDAQ OMX Group, Inc. delivers trading, exchange technology
and public company services across six continents, and with over 3,900
companies, it is number one in worldwide listings among major markets.
Among companies listed in NASDAQ OMX are such names as Google, Apple, Microsoft,
Nokia, Carlsberg, Volvo, Reuters.
