"We are pleased to be participating in the further integration of the Nordic and Baltic securities markets which serves listed companies and investors alike. ICEX listed companies will gain increased visibility and be able to benchmark against a larger peer group. Furthermore, we expect more international members to participate in the Icelandic market thereby enhancing the liquidity. At the same time the Nordic list will benefit from the addition of some of the fastest growing companies in the Nordic region. The combination should also broaden the investment alternatives for Icelandic investors. All in all, this combination presents promising opportunities for the Icelandic securities market" says Thordur Fridjonsson, General Manager of EV and President and CEO of ICEX.
"We look forward to taking our cooperation to the next level and welcoming the Icelandic marketplace into the OMX Nordic Exchange. We are creating an integrated Nordic home market to increase intra-Nordic trading and improve the attractiveness to international investors. It is very encouraging to contribute to the increased visibility of Icelandic companies as they will join the common Nordic list, OMX's information services and OMX-wide indices", says Jukka Ruuska President business area Nordic Marketplaces OMX.
Benefits from the combination
The combination of OMX and ICEX will create value and benefits to shareholders, issuers and market participants and will further promote an integrated Nordic securities market. This will strengthen the position of OMX to meet the challenges of the future. The combination is expected to lead to higher liquidity on the Icelandic market over time and to provide benefits through cost and revenue synergies. The OMX Nordic Exchange will also benefit from know-how developed within the Icelandic market.
To increase visibility for Icelandic companies, they are expected to be included in the common Nordic list in the beginning of next year. At the same time Icelandic share price data will be included in the OMX Nordic real-time information offering and ICEX-listed instruments will be included in OMX indexes according to the same rules that apply to instruments on other OMX exchanges. ICEX's calculation and publication of local indexes will continue to reflect the Icelandic market.
Furthermore, liquidity in the Icelandic equity markets is expected to increase not only due to improved visibility and attractiveness for Icelandic companies, but also due to other opportunities, for instance, one common broker network including a single point of access and a higher number of remote-members. Another important measure is the harmonization of rules, listing requirements and regulations that will take place over time.
It is also anticipated that a combination will increase the pace of progress of the Faroese Securities Market (Viroisbraevamarknaour F0roya or VMF), which is operated by ICEX. ICEX's alternative market iSEC will be rebranded First North, which is the second largest European alternative market in number of companies. Derivatives products and services will be introduced next year based on Icelandic instruments and fully integrated with OMX's derivatives offerings.
ISD will continue to work closely together with ICEX to facilitate joint product development and reduce overhead costs. This combination supports OMX and EV's drive for integrated Nordic clearing and settlement.
Proposed Company Structure
Following the anticipated transaction, OMX will be the parent company of the group. OMX's shares are already listed on Stockholm Stock Exchange, Helsinki Stock Exchange and Copenhagen Stock Exchange. OMX plans to seek listing on ICEX following the closing of the transaction.
ICEX and ISD will continue to be regulated by Icelandic laws and supervised by Icelandic authorities. ICEX's brand will be incorporated and harmonized with OMX's branding structure.
