The Exchange Regulation (“Børsforskriften”) for Nasdaq Oslo ASA regulates what tasks the market surveillance department shall perform.
The main task for Market Surveillance is to monitor the market participants’ orders, trades and reporting of non-exchange trades in the financial market. If there is suspicion of any breach of the trading rules, Market Surveillance shall gather information, and investigate according to the proceedings described later in the document.
Market Surveillance has an important role in building market confidence, and in this context, performs advisory service towards market participants as to the principal and practical compliance of the trading rules.
The main focus areas of Nasdaq Commodities' Market Surveillance can be divided into four main points.
The two first points deal with market participants' obligations to provide information to the exchange and the market for transparency purposes, and constitute essential fundaments for any further investigations:
1. Reporting of non-exchange trades
All market participants shall report OTC transactions in a clearing request to Nasdaq Stockholm. The main rule is that the reporting must take place within 15 minutes, and must contain the correct data of the trade. This is described in the Market Conduct Rules § 2.
2. Disclosure of inside information
All market participants shall immediately disclose to Nasdaq Commodities all inside information. This is in general all information which is likely to impact prices in any of the markets.
This is described in the disclosure rules, enclosure 1 to the Market Conduct Rules.
The two next points deal with market participants' market conduct and actual trading:
3. Insider trading
Market participants are prohibited from trading when holding inside information.
This is valid until the information has been made public as defined in the rulebook.
4. Market manipulation
Market participants shall not engage in market manipulation as defined in The Norwegian Securities Trading Act and Market Conduct Rules.