Helsinki Stock Exchange
Encyclopedia
The Helsinki Stock Exchange is a stock exchange
located in Helsinki
, Finland
. Since 3 September 2003 it has been part of OMX
, referred to as OMX Helsinki (OMXH). Since NASDAQ
's acquisition of OMX in February 2008, the official name of the Helsinki exchange has been NASDAQ OMX Helsinki.
owned mostly by bank
s, trader
s, other companies and associations
.
On April 1, 1990, trading was moved to a new digital system: HETI (Helsinki Stock Exchange Automated Trading and Information System, and in Finnish a rough backronym
for "immediately"), which replaced the electro-mechanical trading board originally introduced back in 1935. HETI enabled remote traders to do transactions on equal terms with those in the trading room
.
The cooperative changed to a limited liability company
(Helsingin Arvopaperipörssi) in the fall of 1995 and merged with several clearing
and stock deposit companies and associations at the beginning of 1997. During 1997 and 1998 the Stock Exchange bought both of the Finnish derivative exchanges and merged them with itself to become HEX. In November 1998 HEX merged with Arvopaperikeskus to form Helsinki Exchanges Group Plc, which then changed its name to HEX Plc in the spring of 2001. In 2001 and 2002 HEX acquired a majority share of the Tallinn Stock Exchange
and the Riga Stock Exchange
.
On 3 September 2003, HEX Plc merged with OM AB, owner of the Stockholm Stock Exchange
, to become OM HEX. A year later, the company was renamed to OMX.
OMX Helsinki 25
(OMXH25) is a stock market index
for the Helsinki Stock Exchange. It is a market value
weighted index that consists of the 25 most-traded stock classes. OMXH25 is also known by its old name, HEX25. As of March 2006, there are two exchange-traded fund
s listed, both are index fund
s for the OMXH25 index.
In April 2006, the Stock Exchange announced the trading will be done in round lot sizes of one share starting from September 25, 2006. Previously trading was done in round lot sizes that varied from listed company to company.
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
located in Helsinki
Helsinki
Helsinki is the capital and largest city in Finland. It is in the region of Uusimaa, located in southern Finland, on the shore of the Gulf of Finland, an arm of the Baltic Sea. The population of the city of Helsinki is , making it by far the most populous municipality in Finland. Helsinki is...
, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
. Since 3 September 2003 it has been part of OMX
OMX
OMX AB is a Swedish-Finnish financial services company, formed in 2003 through a merger between OM AB and HEX plc and is now a part of the NASDAQ OMX Group since February 2008.It has two divisions, OMX Exchanges, which operates eight stock exchanges mainly in the Nordic and Baltic...
, referred to as OMX Helsinki (OMXH). Since NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
's acquisition of OMX in February 2008, the official name of the Helsinki exchange has been NASDAQ OMX Helsinki.
History
The Helsinki Stock Exchange saw its first transaction on October 7, 1912. From then it remained a "free form" financial association until in 1984 it was converted into a cooperativeCooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
owned mostly by bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s, trader
Stock trader
A stock trader or a stock investor is an individual or firm who buys and sells stocks in the financial markets. Many stock traders will trade bonds as well...
s, other companies and associations
Voluntary association
A voluntary association or union is a group of individuals who enter into an agreement as volunteers to form a body to accomplish a purpose.Strictly speaking, in many jurisdictions no formalities are necessary to start an association...
.
On April 1, 1990, trading was moved to a new digital system: HETI (Helsinki Stock Exchange Automated Trading and Information System, and in Finnish a rough backronym
Backronym
A backronym or bacronym is a phrase constructed purposely, such that an acronym can be formed to a specific desired word. Backronyms may be invented with serious or humorous intent, or may be a type of false or folk etymology....
for "immediately"), which replaced the electro-mechanical trading board originally introduced back in 1935. HETI enabled remote traders to do transactions on equal terms with those in the trading room
Trading room
A trading-room gathers traders operating on financial markets.The trading-room is also often called the front office.The terms dealing-room and trading-floor are also used, the latter being inspired from that of a open outcry stock exchange....
.
The cooperative changed to a limited liability company
Limited liability company
A limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions...
(Helsingin Arvopaperipörssi) in the fall of 1995 and merged with several clearing
Clearing
Clearing may refer to:* Glade , a tract of land with few or no trees in the middle of a wooded area* Deforestation, the clearing away of trees to make farmland* Clearing , the process of settling a transaction after committing to it...
and stock deposit companies and associations at the beginning of 1997. During 1997 and 1998 the Stock Exchange bought both of the Finnish derivative exchanges and merged them with itself to become HEX. In November 1998 HEX merged with Arvopaperikeskus to form Helsinki Exchanges Group Plc, which then changed its name to HEX Plc in the spring of 2001. In 2001 and 2002 HEX acquired a majority share of the Tallinn Stock Exchange
Tallinn Stock Exchange
The Tallinn Stock Exchange is a stock exchange operating in Tallinn, Estonia. It is one of the OMX Exchanges, which also operates Helsinki Stock Exchange and Stockholm Stock Exchange and is the only regulated exchange in Estonia. It has a pre-market session from 09:00 to 10:00, a normal trading...
and the Riga Stock Exchange
Riga Stock Exchange
The Riga Stock Exchange now "NASDAQ OMX Riga" is the sole stock exchange operating in Riga, Latvia. It is owned by NASDAQ OMX, which also operates exchanges in the USA, Denmark, Sweden, Finland, Iceland, Armenia, Lithuania, and Estonia...
.
On 3 September 2003, HEX Plc merged with OM AB, owner of the Stockholm Stock Exchange
Stockholm Stock Exchange
The Stockholm Stock Exchange is a stock exchange located in Stockholm, Sweden. Founded in 1863 it is the primary securities exchange of the Nordic Countries....
, to become OM HEX. A year later, the company was renamed to OMX.
OMX Helsinki 25
OMX Helsinki 25
OMX Helsinki 25 is a stock market index for Helsinki Stock Exchange. It is a market value weighted index that consists of the 25 most-traded stock classes. The maximum weight for a single stock is limited to 10%...
(OMXH25) is a stock market index
Stock market index
A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....
for the Helsinki Stock Exchange. It is a market value
Market value
Market value is the price at which an asset would trade in a competitive auction setting. Market value is often used interchangeably with open market value, fair value or fair market value, although these terms have distinct definitions in different standards, and may differ in some...
weighted index that consists of the 25 most-traded stock classes. OMXH25 is also known by its old name, HEX25. As of March 2006, there are two exchange-traded fund
Exchange-traded fund
An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
s listed, both are index fund
Index fund
An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions.-Tracking:Tracking can be achieved by trying to hold all of the...
s for the OMXH25 index.
In April 2006, the Stock Exchange announced the trading will be done in round lot sizes of one share starting from September 25, 2006. Previously trading was done in round lot sizes that varied from listed company to company.
Hours
Normal trading sessions are from 10:00am to 6:30pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.Trading rules
A special feature of Helsinki Exchange is that limit orders are not allowed to cross over. For an effective market order, the unfilled portion of the order becomes a limit order stays at the execution price.Currently listed stocks (followed by quote symbol)
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