These are some of the most important institutions and regulations for participants in the Swedish securities markets:
Regulatory authority
The Swedish Financial Supervisory Authority, under the Ministry of Finance, supervises banks, securities companies, exchanges, authorised market places, clearing organisations, insurance companies and mutual funds.
The Central Securities Depository
The Swedish CSD - VPC AB - is the only depository and clearing centre in Sweden. It registers in book-entry form all securities quoted on the stock exchange. VPC is a private limited company, authorised as central securities depository and clearinghouse. Foreign investors' Swedish securities are registered on VPC accounts held by VPC participants, such as Danske Bank, in the name of the foreign bank or broker as either an omnibus account or as individual sub-accounts in the name of the client of the foreign bank or broker.
New Clear, the new clearing system, was introduced in 2003. The main purpose was to upgrade VPC’s clearing and settlement and increase its efficiency to enable operations to meet future international requirements allowing both securities and payments to be settled gross.
In November 2004 VPC AB and OMX AB (publ) announced that the parties had decided to fulfilled the terms and conditions of a merger of the OMX-owned Finnish Central Securities Depository (APK) and VPC, thereby creating a strong joint central securities depository group within the Nordic region. The new common name for APK and VPC is NCSD.
NCSD is an eligible custodian as defined by Securities and Exchange Commission Rule 17F-7.
OMX AB (publ)
OMX owns and operates the largest securities marketplace in Northern Europe and is a leading provider of marketplace services and solutions for the financial and energy markets. OMX consists of two divisions: OMX Technology – a world-leading provider of solutions and services (outsourcing and transaction processing) based on pioneering and proven technology and OMX Exchanges – the integrated Nordic and Baltic marketplace for securities, giving customers access to 80 percent of the Nordic and Baltic securities market.
OMX is listed on the Stockholm Stock Exchange and the Helsinki Stock Exchange.
Stockholm Stock Exchange
The Stockholm Stock Exchange dates back to 1863. Today, it is an authorised securities exchange for equities and bonds and also an authorised clearinghouse for derivatives. In 1993 the exchange was converted into a joint stock company and in 1998, the exchange was acquired by OMX.
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.
Regulations
Both the capital market and the foreign exchange market have been fully liberalised and today no restrictions exist for non-residents.
Disclosure rules and reporting requirements
A 5% disclosure rule must be observed.
Tax
No tax is levied on foreign investors' interest payments. The withholding tax on dividend payment is 30 %. Relief at source is offered to foreign investors living in countries with which Sweden has signed a double taxation treaty. If withholding tax is not reduced at source, the 30% dividend tax is automatically deducted from foreign investors' dividend payments and excess tax may be reclaimed according to double taxation treaty rates.