In Denmark there is a long tradition of trading the units of investment funds (UCITS) and other types of collective investment schemes on the exchange according to the same well-known principles and terms as are known from trading in shares.
In Copenhagen the units are traded on three different submarkets:
- The market for investment funds
- The market for other collective investment schemes
- The market for foreign funds - indicative NAV
The Market for Investment Funds
The market for investment funds was created as a result of cooperation between Nasdaq and the Danish investment funds represented by the Federation of Danish Investment Associations.
The market is for investment funds which are subject to the Act on investment associations, etc. of the Danish financial regulation regime and corresponding foreign UCITS approved investment undertakings. The market is governed by the same stock exchange regulation as applies to Nasdaq Copenhagen. Nasdaq is responsible for the operation and surveillance of the marketplace.
In practice, the market for investment funds covers all Danish investment funds offered and marketed to a wider group of investors in Denmark. This combined with access to trading in the same trading system as other securities on Nasdaq Nordic enables the investor to trade practically all investment funds via Danish banks, web banks and online stockbrokers.
Today, the market has more than 400 listed sub-funds distributed on over 40 investment funds.
The Market for Other Collective Investment Schemes
This market is aimed at other types of collective investment schemes than traditional investment funds. Legally, a distinction is typically made between funds approved as so-called section 115 associations of the Danish Act on investment associations and other types of funds not covered by this section. Moreover, there are foreign funds which are not covered by the UCITS Directive.
The listing requirements are specifically adjusted to this type of associations. The trading terms and regulation on this market are the same as those applicable to trading in investment funds in general.