These are some of the most important institutions and regulations for participants in the Danish securities markets:
Regulatory authority
The Danish Financial Supervisory Authority, under the Ministry of Economic and Business Affairs, is the official regulatory authority for financial market organisations.
The Danish Securities Council supervises the market.
The Central Securities Depository
The Danish CSD - VP Securities Services - is the depository and clearing centre in Denmark. VP is a limited company whose shareholders comprise the major market participants. Foreign investors' Danish securities are recorded on VP accounts held by the VP participants, such as Danske Bank, in the name of the foreign investor.
The Copenhagen Stock Exchange
Trading in securities is fully computerised, and more than 2,800 security codes are listed on the CSE. In 1996, the CSE was converted into a limited company.
On November 15, 2004, OMX AB and Copenhagen Stock Exchange A/S announced plans to combine the operations of the two companies.
The NOREX Alliance
NOREX is a strategic cooperation between the Nordic and Baltic exchanges in Denmark, Finland, Estonia, Iceland, Norway, Latvia, and Sweden.Trading is conducted on the electronic trading system SAXESS, which is used by all the members of the NOREX Alliance.
Market structure and size
The main strengths of the Danish market lie in its bond market.
The Danish bond market is among the 10 largest in Europe, in terms of both turnover and market capitalisation. The Danish stock market is more modest in size.
Regulations
Both the capital market and the foreign exchange market have been fully liberalised, and today they operate with no restrictions.
Disclosure rules
A 5% disclosure rule must be observed. Notification of shareholdings and changes in holdings must be made in accordance with the rules in the Danish Securities Trading Act.
Tax
A 28% tax is automatically deducted from foreign investors' dividend payments, and excess tax may be reclaimed according to double taxation treaty rates. No tax is levied on foreign investors' interest payments.