RIGA - The Riga Stock exchange has changed itslegal name to NASDAQ OMX Riga.
The decision to change the name of the RigaStock Exchange was taken to reflect the merger with the worlds largestexchange company, NASDAQ OMX, and emphasize its compliance with modern andtrusted public securities market standards, respected by businesses andinvestors all over the world.
Together with the name change and fullmerger with the NASDAQ OMX group, the exchange also symbolically celebrates15 years of its operations and defines its future targets that will uncoveropportunities for Latvian businesses to attract international investorsand increase its visibility.
"Looking from the outside perspectiveof foreign businesses and investors, the integration in the NASDAQ OMXgroup and our new name is a sign of quality and security. Both the Latvianstate and business will be in need of extra funds to overcome the crisisand restore the economy, and that's one of the main reasons why both nowand in the future it's important to assure foreign countries that Latviais a dependable place for business. Our securities market has gained morereliability. Businesses, if they wish for it, have gained an opportunityto attain higher visibility in Europe and the United States," explainsDaiga Auzina-Melalksne, president of NASDAQ OMX Riga.
She believes that since its foundation15 years ago, the exchange in Riga has seen very significant development.A modern and reliable exchange with a wide array of services has been createdfrom scratch; however, the biggest challenges are still ahead. Thereis significant potential for employing the exchange to develop and helpthe Latvian economy, but it can only do so with the cooperation and thegoodwill of the state.
"The current crisis creates an opportunityfor 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 priorityfor using the funds of Latvian residents to develop Latvian businessesand to increase the trust and investments of foreign investors in Latvia.Thanks to the fact that our international stakeholders are representedin Latvia, the investors' trust in the country has increased steadilyfor a long time. Even though this trust has fallen dramatically duringthe last year, our presence in the NASDAQ OMX group creates an opportunityfor Latvia to get noticed and perceived in a positive light. It is prestigiousfor a country to have a company like this represented in Latvia. A smartstate will use it," Auzina-Melalksne said.
"The stock exchange is a good wehiclefor inflow of foreign investments, and Latvia, being a small country, isin critical need of foreign capital," said Karlis Cerbulis, the firstpresident of the Riga Stock Exchange and one of its founders, now theSenior 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 impressionfor the country. The exchange also plays a very important role in shapingthe country's image.
The second president of the exchange,Uldis Cerps, now Director of Prudential Supervision at the SwedishFinancial Supervisory Authority, said that it has historically been importantfor the exchange to create a reliable infrastructure to meet the higheststandards and in Riga this target has been met successfully from the verybeginning.
"The exchange helps to develop the nationaleconomy, but development isn't only in the hands of the market. It needsa corresponding state policy of support," said Guntars Kokorevics,third president of the exchange, now the representative in Latvia ofthe French energy company Dalkia. He, too, said that for foreign businessesand investors, the merger with NASDAQ OMX defines quality and security.
"The exchange has increased transparencyin the country. We have purposefully worked to achieve best business practicesto be a norm, not an exception," said Auzina-Melalksne, thecurrent president. She also stresses that the state and businesseswill require funds in the future, and when the situation improves in themarkets, listing can make it easier to attain extra capital. This opportunitystill has potential both in stocks and bonds segments. She also notesthat, thanks to listings and exchange auctions, Latvian pension funds caneasily make investments in Latvian bonds and corporate securities, thusspecifically supporting Latvian economy.
NEXT STEPS
"The current crisis has substantiallyreduced investor trading activity in our market but when the economic situationimproves, it will return," Auziņa-Melalksne forecasted. She said thatin the current situation the exchange needs to maintain the market qualitystandards '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 eurosthat is more in favour to foreign investors, Introducing a new trading system in theBaltics common with the United States, Continuing both the investor and companyeducation programs, Development of proposals for the Cabinetof Ministers.
ORIGIN OF THE BRAND
U.S. exchange NASDAQ (NationalAssociation of Securities Dealers Automated Quotations) was founded on Feb. 8, 1971. The Nordic and Baltic trading company wascreated in 2003 by the merger of Sweden Stock exchange OM (AktiebolagetOptionsmäklarna) and the Helsinki Stock exchange HEX. The OMX groupincluded the Riga, Tallinn, Vilnius, Helsinki, Stockholm, Copenhagen, Icelandand Armenia stock exchanges.
ABOUT THE NASDAQ OMX GROUP, INC
The NASDAQ OMX Group, Inc. is the world'slargest exchange company. It was created on Feb. 27, 2008,by the merger of NASDAQ and OMX. Both NASDAQ and OMX are relatively youngexchanges that have become leading members of the exchange industry ina short time and have created one of the most known brands in the world.Currently NASDAQ OMX Group, Inc. delivers trading, exchange technologyand public company services across six continents, and with over 3,900companies, 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.
