TALLINN STOCK EXCHANGE

ANNOUNCEMENT 

23.04.99

 

SIGNING OF MEMORANDUM OF UNDERSTANDING

 

On 23 April 1999, 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. 

 

 

TSE