Nasdaq First North Granted SME Growth Market Status
New EU status aims to facilitate access to capital for SMEs and is expected to strengthen the international profile of Nasdaq First North
The transition will become effective on September 1, 2019, and the equity segment will then be referred to as Nasdaq First North Growth Market
Stockholm, August 15, 2019 – Nasdaq (Nasdaq: NDAQ) today announced that the equity segment of Nasdaq First North in Sweden, Denmark and Finland has been granted the European Union’s ‘SME Growth Market’ status. SME Growth Markets are a new subcategory of multilateral trading facilities (MTFs) introduced by MiFID II, and aim to facilitate access to capital for small and medium sized enterprises (SMEs).
“SMEs represent the vast majority of all companies across the European economy and are critical to job creation and growth,” said Bjørn Sibbern, EVP and President of European Markets, Nasdaq. “Maintaining a strong and dynamic market place for companies and investors while safeguarding market integrity is one of Nasdaq’s top priorities, and we are confident that the SME Growth Market status will make Nasdaq First North an even better platform for European SMEs looking to raise capital.”
The SME Growth Market initiative aims to establish a pan-European regulatory standard for market operators, with certain regulatory alleviations aimed at giving European SMEs more efficient access to the public market. Market operators applying to become an SME Growth Market must be operated as MTFs, where at least 50 percent of the issuers should be SMEs as defined by the European Union (i.e. companies with a market cap of <€200 m). Nasdaq First North’s transition to SME Growth Market will become effective on September 1, 2019, and the equity segment of the market in Sweden, Denmark and Finland will then be referred to as Nasdaq First North Growth Market.
“Nasdaq First North continues to see a strong interest from issuers, advisors and investors across Europe,” said Adam Kostyál, SVP and Head of EMEA Listings, Nasdaq. “As we continue to further develop Nasdaq First North to better serve both issuers and investors, we are excited about this significant step in our efforts to strengthen the profile of our market and maintain Nasdaq’s position as the leading listing hub for growth companies in Europe.”
Nasdaq First North has been one of the top European market places for SMEs for several consecutive years, with 280 new listings (capital raised: 2.9 billion EUR) since 2015. By adding the SME Growth Market status to the equity segments of Nasdaq First North in Sweden, Finland and Denmark, Nasdaq gives listed companies access to the regulatory alleviations created by the EU. The new status is also expected to increase the visibility and international profile of Nasdaq First North and attract more international investors to the market.
Further information about the transition as well as detailed information about the alleviations for issuers can be found here.
About Nasdaq First North & Nasdaq First North Premier
Nasdaq First North is regulated as a multilateral trading facility, operated by the different exchanges within Nasdaq Nordic. It does not have the legal status as an EU-regulated market. Companies at Nasdaq First North are subject to the rules of Nasdaq 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.
Nasdaq First North Premier is a segment within Nasdaq First North, designed to further assist companies in raising investor visibility and to prepare them for a Main Market listing. Nasdaq First North Premier targets companies that make a conscious decision to comply with higher disclosure and accounting standards than imposed under the Nasdaq First North rules.
Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 100 marketplaces in 50 countries. Nasdaq is home to approximately 4,000 total listings with a market value of approximately $14 trillion. To learn more, visit: https://new.nasdaq.com.