NASDAQ OMX Tallinn, November 16, 2009
This year is the fifteenth anniversary of the establishment of the Estonian Central Register of Securities (EVK). On 16 February 1994, representatives of seven local commercial banks , the Ministry of Finance, the Bank of Estonia and the Compensation Fund signed a memorandum of association establishing EVK. The “legal birth certificate” of the Register was issued on 14 October 1994 by virtue of the adoption of 14 October 1994 Regulation No 374 of the Government of the Republic on the Establishment of the Estonian Central Register of Securities.
The first securities registered with EVK were debentures of the City of Tallinn. During the period 1995- 2009, 45 public share offerings have been held through EVK. In the early years, the volumes of register services were affected by active privatisation and the next logical step in the story of the evolution of the Estonian securities market – the founding of the Tallinn Stock Exchange on 19 April 1995, and its launching on 31 May 1996.
Testimony of the continuing close cooperation between the state and EVK is offered by the registers of both public limited companies and pensions entrusted for keeping to the Register of Securities. Fears that spread in the early years have proven unwarranted, and tensions on registration issues have now abated. Moreover, the number of private limited companies (2000) voluntarily registering their shares in the Register is vigorously approaching 50% of the total of the public limited companies entered in the Register (4649).
A significant contribution was made by EVK to the smooth launching of the funded pension system in 2002, where, despite a very short preparation time, a new software solution(KOPIS) was developed successfully, with the help of which it was possible to cope with the number of new members beyond all expectations (207 000 in the first year). That year, cooperation was commenced with the state of Armenia, to export Estonian experience and help to launch the pension system there. In addition, EVK engages actively in the exporting of information and communications technology solutions by the state of Estonia for financial services and in the compilation of sector development plans.
Today, EVK’s regional cooperation with the other Baltic depositories (in Latvia and Lithuania) is unique in the entire European context, permitting the cross-border clearance of transactions executed on the Baltic stock exchanges and the keeping of the securities of an issuer in another Baltic State in the securities account in the home state of the investor. EVK’s Target2-s membership opens up new opportunities for clients of banks that have joined the system to execute speedy and secure euro payments within the European Union. Also, it is the objective of the NASDAQ OMX Group to continue to develop the Baltic depositories and securities market.
EVK also supports efforts by the Government to introduce the euro, ensuring the comprehensive readiness of the infrastructure of the securities market in Estonia in the event of the transition. Also, there is the involvement in the Eurosystem’s T2S (Target2-Securities) initiative, which is expected to launch a platform enabling pan-European cross-border clearances.
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