The First North Alternative Market (MTF – multilateral trading facility)

The Baltic Main List and Secondary List comprise the main market of the Nasdaq Baltic exchanges, which is regulated under EU directives and supervision by the national FSA. The listing requirements are based on European standards and EU directives, and intended for companies that are well established. Regulatory demands are higher on the regulated market than on First North.

First North is an alternative market operated by the different exchanges within Nasdaq. It does not have the same legal status as a regulated market in the EU. The term used in the EU directive is MiFID. For MiFID, trading can be organized with a less complicated set of rules within the framework of a Multilateral Trading Facility (MTF).

First North is an exchange-regulated marketplace supervised by the Exchange and the Advisers. It suits companies in all industries and of all sizes, from small, young or growth companies to those that already well established. First North combines the benefits of being public with simplicity, and is often a first step toward the main market. The regulatory demands are less extensive than on the regulated market and hence there is a higher risk connected to investments on First North. This can also mean higher earnings potential on investments. First North provides a large investor base since it operates on the same trading and settlement systems as the Baltic regulated market.


Regulated Market: 
Baltic Main List

Alternative Market: 
First North 

Status of the market and supervision

Regulated main market listing with all applicable EU and local regulations Admission to trading mainly regulated by the market operator

Entry preparation and requirements

At least three years of operation No minimum period of operation
At least EUR 4 million market capitalization No minimum capitalization requirements
At least 25% of shares, or shares worth EUR 10 million, in public hands No minimum market value and no free float requirements
Prospectus is approved by the Financial Supervisory Authority Prospectus or simplified company description
A number of external advisors (investment bank, law office, international auditors, etc.) are usually needed for preparation Requirement to enter into a service agreement with a company from the exchange-approved Certified Adviser list

Information disclosure

Financial accounting according to IFRS Financial accounting according to local accounting principles or IFRS
Annual, semi-annual and quarterly financial reports Annual and semi-annual financial reports, but no quarterly reports
Information disclosure in the local language and English Information disclosure in the local language or English
Must report on compliance with the corporate governance code No requirement to report on corporate governance code compliance

Risk perception by investors

Controlled risks given high admission and information disclosure requirements for companies Higher risks given lower requirements for companies.