Market surveillance

For a securities market to function well, it must have high standards of infrastructure and control of compliance. Oslo Børs commits sizeable resources to monitoring market activity. This is the primary responsibility of the Market Surveillance Department. This department operates in accordance with the special provisions set out in Section 27 of the Stock Exchange Act and related legal regulations. This ensures the integrity of the department and its independence of the commercial activities of Oslo Børs.

It is essential for confidence in the integrity of the marketplace that the process of price formation for listed securities is carried out properly and correctly, and that everyone in the market has the same information. If circumstances occur that create uncertainty over the market's pricing of a particular security, it is the responsibility of Market Surveillance to investigate what is happening. In this kind of situation, there are a number of different instruments that the department can implement, and it also reports any irregularities or breaches of the relevant legislation to the official authorities. The department also monitors compliance with the various reporting rules and other requirements that are important for market transparency.

Investigation and reporting to the authorities
Oslo Børs has a legal duty to report suspicious matters to Finanstilsynet (the Financial Supervisory Authority of Norway). In addition, Oslo Børs and Finanstilsynet have established formal guidelines for their collaboration in this area. If Oslo Børs identifies a possible breach of the rules, it immediately initiates a more detailed investigation. Such investigations may result in Oslo Børs imposing sanctions on members or listed companies, or it may refer cases to the authorities. In cases where Oslo Børs suspects a breach of legislation and regulations and its initial investigation does not resolve its suspicions, it will apply a low threshold of concern to report the matter to Finanstilsynet.

Market manipulation and insider dealing
Identifying market manipulation and insider dealing represent the most important duties of the Market Surveillance Department, and it commits considerable resources to this task. This involves the use of a number of advanced systems and sophisticated investigation techniques. In recent years cases relating to market manipulation and insider dealing have been routinely pursued through the courts, and most of these cases were first reported by Oslo Børs.

Courses and training
The Market Surveillance Department offers an extensive range of courses and training arrangements for market participants that address the issues of market manipulation and insider dealing.

Preventative measures
A commitment to preventative measures combined with targeted action to increase the risk of discovery help to improve the professionalism of all market participants. This in turn helps to create a more professional market.

International collaboration with ISG
With some 40 members, ISG – the Intermarket Surveillance Group – is an international network of exchanges from around the world, including Oslo Børs. The organisation exchanges information on matters such as trends and developments that its members experience in their markets, and subject to certain requirements members can also exchange confidential information and assist each other when investigating cases with cross-border involvement.

The duty of notification for primary insiders
A register of insiders was established in October 2000 to monitor compliance by primary insiders with their reporting duties. This system has produced a marked improvement in identifying breaches by primary insiders of the notification requirements imposed by Section 4-1 of the Securities Trading Act. The system was upgraded in 2006, and now represents a state-of-the-art tool that helps issuers to update information on their primary insiders and efficiently control their compliance. The register of insiders provides information on the primary insiders associated with each company and the transactions that they have notified.