The objective of the legal regulation is to ensure regular and lawful operation of the market. The main functions of the regulatory framework are:

  • to protect the interests of investors
  • to ensure the lawfulness, reliablity, efficiency and transparency of the market
  • to reduce systemic risks

The main sources of legal regulations that create the basis for achieving these objectives, and for harmonizing the legal framework of the Estonian securities market with EU requirements and standards, are:

  • Securities Market Act
  • Investment Funds Act
  • Financial Supervisory Authority Act
  • Guarantee Fund Act
  • Estonian Central Register of Securities Act
  • Legal acts established on the basis thereof, mostly Regulations of the Minister of Finance

On the basis of and in addition to legal acts Nasdaq Tallinn as a self-regulatory organization issues and enforces its own Rules and Regulations to ensure the regular and lawful operation of the market.

Market supervision

The main supervisory body of the market is Financial Supervisory Authority of Estonia (FSA).

The FSA is an agency with autonomous competency and a separate budget, which operates at the Bank of Estonia and which acts pursuant to the principles and procedure provided in Financial Supervisory Authority Act.

The FSA conducts financial supervision in the name of the state in order to enhance the stability and reliability of the entire financial sector.

Nasdaq Tallinn performs supervision of market participants and issuers of securities traded on the market as regards the price formation of securities traded on the market, the conducting and execution of transactions, and fulfilment of the provisions of the Rules and Regulations. Nasdaq Tallinn carries out market supervision on the grounds and within the scope prescribed by legal acts and the Rules and Regulations. Nasdaq Tallinn and the FSA cooperate in the exercise of market supervision.