Shifting securities market
The securities market involves organised dealing in securities. Securities dealers and investment firms enable the effective operation of the securities market alongside with other traders in the market, such as the stock exchange and the central securities depositary.
The securities market is divided into the money market, derivatives market and capital market. However, the term securities market is often used to refer only to the capital market, which involves the issuing of securities (primary market) and stock exchange trading (secondary market).
The most important piece of legislation that governs the securities market is the Securities Markets Act. Other important laws that apply to the securities market are the Act on Investment Firms, the Act on the Book-Entry System, and the Act on Common Funds. The Financial Supervisory Authority oversees operations in the securities market.
The Finnish securities market is going through an extensive legislative reform, which seeks to improve the clarity and transparency of legislation, boost the competitiveness of Finland's capital market and make the custody and clearing services of securities more effective. The reform would implement multi-tier custody of securities in Finland.
In the wake of the financial crisis, and the debt crisis that ensued in many countries, the EU securities market legislation is currently also under revision. Particular pressure for change is focused on custody and clearing services and the role of marketplaces.