The Latvian Central Depository has compiled the statistics on the Latvian securities market in 2010

16.03.2011 RIG

The Latvian Central Depository (LCD) has compiled the statistics on the Latvian securities market in 2010. The Depository provides registry, accounting and settlement services for all listed securities as well as for the securities entered on the LCD books following the request of their owners.

The statistical report covers all securities issues registered in Latvia, the transactions in securities and the amounts settled by the LCD, the number of new securities accounts in Latvia as well as the investor structure. The data have been contributed by all LCD participants – banks, brokerage companies etc.

The statistical report in full is available under http://www.nasdaqbaltic.com/en/csds/latvian-csd/stats , while the highlights are presented below:  

 

What is the total number of securities in Latvia?

• On December 31, 2010 the LCD had altogether 173 securities issues on its accounts at total value 1.75 billion lats, including shares, government and corporate debt securities, investment fund units. 57% of the securities issues are listed and traded on NASDAQ OMX Riga market.  

Has the securities trading been lively in Latvia?  

• In 2010 the LCD settled 60555 securities transactions (market trades and OTC transactions, including FOP) at total value 897.6 million lats. Equities traded on and off the market amounted to 26.01 million lats. The turnover in debt securities was 870.70 million lats, comprising the trading in debt securities on the stock exchange and OTC, as well as the settlement value for the Treasury bill auctions organized by NASDAQ OMX Riga. The investment fund unit turnover in OTC transactions amounted to 0.89 million lats.

How many investors are there in Latvia? 

• Latvia-registered securities are kept on 79 676 securities accounts, of which 98% are owned by natural persons. In terns of value, however, this represents only 10% of the Latvian securities, meaning that 90% of the value is owned by legal entities, prevailingly parent companies of other joint stock companies, as well as by investment funds and the LCD participants – banks and brokerage companies.
   
• If we look at the total number of securities accounts, i.e. including those with securities registered in a country other than Latvia, or the total number investors in Latvia (94 550), it is curious to note that there are only 16% of accounts with not a single Latvia-registered security on it, suggesting that investors in Latvia, when building their securities portfolios, rely mostly on Latvian securities.  
   
• Half of natural persons – securities owners – have them on their own securities accounts with banks, thus they can actively transact in them, while the other half or 38 934 persons have their securities in the Initial Register maintained by the LCD: these are the securities acquired in exchange for privatization vouchers and have not been transferred to personal securities accounts with the banks (i.e. have not been deregistered).  

How many new investors are there in Latvia?

• In 2010, 5 902 new securities accounts were opened with banks and brokerage companies in Latvia, with both Latvian as well as other securities. The majority (86%) of the new accounts were opened by natural persons.  

Who owns the Latvia-registered securities (in terms of value)?

• The owners of different types of securities registered with the LCD – shares, debt securities, investment fund units – are residents (47%), non-residents (22%) and the LCD participants – commercial banks and brokerage companies (31%).  
   
• As to the legal status, the majority (76%) of investors in Latvia are legal entities, while natural persons own a mere 10% of Latvian securities (in terms of value); 12% are owned by investment funds and 2% – by banks and brokerage companies.
   
• As to the geographical breakdown of equity investors, 45% are from Latvia, 13% from Germany, 10% from Switzerland, while the neighbors from Lithuania and Estonia own 9% and 8% respectively of the Latvia-registered shares. Russian investors own 6% of shares.  

 

Raitis Vancāns, a Latvian Central Depository Management Board member and Head of Settlement, says: „It is a positive trend that during the past year there have been increasing numbers of private joint stock companies where the shareholders are willing to keep their shares with the LCD, and, when necessary, to convert them and transfer to their securities accounts with banks, similar to what the shareholders of public companies are doing; as a result, their shareholdings are more secure. The maintenance of the shareholder register by a third party, instead of keeping it in a notebook locked up in the company’s vault, corresponds to international practice. The Latvian Central Depository is the only institution in Latvia authorized to register Latvian securities.”

 

 

About the Latvian Central Depository 

Latvian Central Depository has the status of a national securities depository. It performs the functions of the central bank for securities, providing registrar, safe-custody and settlement services for all securities that are in public circulation in Latvia and also for those that are not listed on the exchange. In addition, the Latvian Central Depository provides other registrar services to its customers, e.g., the second pillar of Latvia’s pension system, shareholder registers for non-listed companies. Latvian Central Depository is a daughter company of NASDAQ OMX Riga. More: www.nasdaqbaltic.com. 

About NASDAQ OMX

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Additional information

Anda Zvīgule
NASDAQ OMX Riga Corporate communications specialist
+37167212431, Anda.Zvigule@nasdaqomx.com