Sweden Penalizes Nasdaq Stockholm for $9.5 Million for Regulatory Non-Compliance

By Madz Dizon

Jun 20, 2024 02:11 AM EDT

Sweden Penalizes Nasdaq Stockholm for $9.5 Million for Regulatory Non-Compliance
This picture taken on March 13 ,2020 shows the exteriors of Stockholm's Nasdaq stock exchange.
(Photo : JONATHAN NACKSTRAND/AFP via Getty Images)

The financial supervisory authority in Sweden has imposed a fine of 100 million Swedish crowns ($9.59 million) on Nasdaq Stockholm for multiple instances of non-compliance with bourse rules in recent years, according to a statement released by the regulator on Wednesday (June 19).

Nasdaq Stockholm's Trading Oversight Found Deficient in 4 Cases

Investigations have uncovered deficiencies in the trading monitoring conducted by Nasdaq Stockholm in relation to four corporate events in 2021 and 2022, Reuters reported.

According to the source, this monitoring is intended to prevent, detect, as well as disclose instances of insider trading. 

The regulator stated on Wednesday that the monitoring should effectively prevent, identify, and report instances of insider dealing.

It was discovered that Nasdaq had started trading in two financial instruments, one in 2022 and another in 2023, without obtaining the necessary approval and registration of prospectuses from the FSA. This violated the regulatory framework.  

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NasDaq Releases Statement

Nevertheless, the FSA stated that the violations are not considered significant enough to warrant the withdrawal of the stock exchange's authorization.

"Although we believe we had adequate capabilities to detect insider dealings, we will now carefully review the decision and evaluate the Swedish FSA's interpretation of our obligations and its implications," stated Adam Kostyal, President of Nasdaq Stockholm, in comments sent via email to Bloomberg.

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