Market infrastructure - Latvia
Institutions and organisation
Riga Stock Exchange (Nasdaq Riga) - (www.nasdaqbaltic.com)
The Riga Stock Exchange was founded in 1993.
Nasdaq Riga is the only regulated secondary securities market in Latvia. Nasdaq Riga is a self regulated organisation, issuing and enforcing its own Rules and Regulations consistent with standard exchange operating procedures. Nasdaq Riga is licensed and supervised by the Financial Capital Market Commission.
Nasdaq Riga uses the INET trading system for trading in equities. Recognised as the most advanced securities trading technology in the world, INET is Nasdaq's core technology used on all Nasdaq equity markets across the world. For trading in fixed-income securities, the Baltic and Nordic exchanges use the Genium INET trading system.
Nasdaq CSD SE (www.nasdaqcsd.com)
Nasdaq CSD was established through the merger of the Estonian, Latvian and Lithuanian central securities depositories in 2017. Nasdaq CSD is licensed under the European CSDR and supervised by Baltic regulatory institutions cooperating in accordance with the CSDR.
Although on the same IT platform, Nasdaq CSD operates with three parallel securities settlement systems (SSS). All SSSs are governed by a common set of rules, with local specifics for each SSS indicated in an addendum of the common rules.
Nasdaq CSD is authorised by the Latvian Financial and Capital Market Commission to provide CSD services in Latvia under the CSDR, and in Estonia and Lithuania via its Estonian and Lithuanian branches. Nasdaq CSD acts as the operator of the Lithuanian securities settlement system, which is governed by Lithuanian laws. Through Nasdaq CSD, market participants are provided with an environment for carrying out transactions with securities, settlement of securities transactions and registration of securities. Cash is cleared through the TARGET2 system.
The depository is 100% owned subsidiary of Nasdaq Nordic Ltd, a stock exchange holding company in Finland.
Financial and Capital Market Commission (www.fktk.lv)
The Financial and Capital Market Commission (FKTK (standing for Finanšu un Kapitala Tirgus Komisija)) is an autonomous public institution, which carries out the supervision of Latvian banks, insurance companies and insurance brokerage companies, participants of financial instruments market, and private pension funds.
FKTK ensures enhancing stability, competitiveness and development of the financial and capital markets as well as protection of the interests of investors, depositors and insured persons.
National Central Bank (www.bank.lv)
The Bank of Latvia (Latvijas Banka - herein referred to as BoLV) is the Central Bank of Latvia. It was established on 1 November 1922 and replaced the former State Savings and Credit Bank.
The Bank of Latvia comprised both the functions of a central bank (including currency issuance, control of currency backing and currency circulation) and a commercial bank (that is lending to and financing of public and private companies, institutions and individuals).