Signing of Memorandum of Understanding

23.04.1999 TLN

Tallinn Stock Exchange Press Release
April 23, 1999

On April 23, the chief executives of the Riga Stock Exchange, the National Stock Exchange of Lithuania, and the Tallinn Stock Exchange, seeking to further promote and expand mutually beneficial co-operation between the Exchanges, signed the Memorandum of Understanding.

The Memorandum states the intention of the three Exchanges to create market access through cross membership. The first step is to offer full access to each others� members to trade securities on all three Exchanges. This requires work with national regulators in order to abolish legal and regulatory barriers inhibiting the implementation of remote membership. During the next phase, members of each stock exchange may be offered common access to the national trading systems by creating a common point of entry to the Baltic equity markets. The Exchanges also agreed to explore the possibility of creating a common trading system or interconnecting the national trading systems through electronic order routing mechanisms.

Secondly, the Exchanges agreed to create the Baltic List of �blue chip� securities listed on the Exchanges. The Exchanges will work to establish common minimum listing requirements and information disclosure standards for the Baltic List securities. Attempts will be made to work out the principles for the composition, calculation and publication of an Index for the Baltic List. Furthermore, it was agreed to discourage cross-listings so as to allow for the single point of liquidity to remain at the home exchange.

Thirdly, the Exchanges resolved to join their efforts to promote the Baltic capital markets as a common investment area. This will be achieved by publishing regular reviews covering the Baltic stock markets, by exchanging periodical and non-periodical publications and linking the Exchanges� homepages on the Internet.

Finally, seeking to ensure an efficient organisational framework for Baltic co-operation, the Exchanges created a Task Force consisting of high level representatives of all three Exchanges. The Task Force will be responsible for drafting an Action Plan for the implementation of the co-operation goals. Regular senior management meetings will be held quarterly to plan, monitor and direct the activities of the Task Force and to take decisions on the implementation of the proposals born of its work.

Additional information:

Eva Palu
Head of Investor Relations Dpt
Tallinn Stock Exchange
Tel: +372 64 08 840
e-mail:

Ilze Nagla
Manager of Public Relations Dpt
Riga Stock Exchange
Tel: +371 7 212 431

Diana Sokolova
Public Relations Manager
National Stock Exchange of Lithuania
Tel: +370 2 723 871