First North is operated by NASDAQ OMX, the leading driver of the integration of the Nordic marketplaces as well as provider of exchange technology solutions to more than 60 clients on five continents.
NASDAQ OMX Nordic offers access to approximately 80 percent of the Nordic and Baltic securities markets with greater ease and value-adding services for trading members, listed companies, investors and other market participants. First North uses the same infrastructure and distribution network as the NASDAQ OMX Nordic.
An alternative market place
First North is a Nordic alternative marketplace for trading in shares. For a company, First North combines the benefits of being public with simplicity. It is a marketplace tailored for companies that are interested in taking advantage of the financial market, but that may not have that possibility on the main market of the Nordic Exchange. First North is the choice for young, small or growth companies that opt for an alternative to the Nordic List.
First North is an alternative market that is not subject to the requirements that apply to Regulated Markets under EU Securities Markets Law. Thus, the requirements set out in MiFID for regulated markets, as well as requirements set out in other relevant EU law, for example the IFRS-regulation, the Transparency Directive, the Take Over Directive and the Market Abuse Directive (those parts that impose ad hoc disclosure obligations on issuers) does not apply.
MiFID also entails that an exchange can organize trade using a less complex set of rules within the framework of a Multilateral Trading Facility (MTF). First North has been included in a licence as an MTF since the time when the MiFID directive went into effect in 2007.
The requirements set out in the Prospectus Directive may apply, if admission to trading on First North coincides with a public offering. If that would not be the case, the company would only be subject to the appropriate initial disclosure requirements set out in the First North Rulebook. Special requirements may also apply based on national legislation, for example in respect of market abuse.
First North provides the infrastructure for trading and distribution of share data. Each company that is admitted to trading must have an agreement with an Adviser. The Adviser has an agreement with the Exchange as well. The Adviser ensures that the company meets the admission requirements and the continuous obligations associated with having shares admitted to trading on First North. Furthermore, the Adviser constantly monitors the company’s compliance with the rules and immediately reports to the Exchange if there should be a breach of the rules.
For investors, First North provides the opportunity to invest in a company early in its lifecycle, at a stage of growth and development. The risk and earning potential in such an investment may be higher than on the main market. Companies on First North are also subject to less stringent requirements than on the main market, which also implies a higher risk.
First North is a Nordic market with a strong commitment to provide attractive services to local stakeholders, in particular companies and investors. However, it is operated under the licensees of different exchanges within NASDAQ OMX. Thus, First North Finland is operated by NASDAQ OMX Helsinki Ltd, First North Sweden by NASDAQ OMX Stockholm AB, First North Denmark by NASDAQ OMX Copenhagen A/S and First North Iceland by NASDAQ OMX Iceland hf. Because the markets to some extent are operated under different jurisdictions, different requirements may apply based on local law, even though the bedrock of the regulation is set out in the harmonized First North Rulebook. For example, in Denmark, there are statutory requirements in respect of take over rules and notification of major shareholder transactions applicable to trading on First North.
NASDAQ OMX First North is an alternative market, operated by the different exchanges within NASDAQ OMX. It does not have the legal status as an EU-regulated market.
Companies at First North are subject to the rules of First North and not the legal requirements for admission to trading on a regulated market. The risk in such an investment may be higher than on the main market.
