OMX Nordic Exchange Iceland hf. has various means of intervening on the market, but its policy has been to tread cautiously in intervening directly unless there is urgent reason for so doing. Intervention could take the form of a trading halt, or the placing of an issuer’s securities on the Observation List. OMX Nordic Exchange Iceland makes every effort to guide and assist issuers and members of OMX Nordic Exchange Iceland where there is doubt as to the interpretation of rules or proper action in individual instances. Emphasis has been placed on strengthening the surveillance aspect of the activities of OMX Nordic Exchange Iceland in recent years to reinforce investor confidence in the market. A large number of employees are involved, directly or indirectly, in surveillance matters.

Since mid-2002, the CEO of OMX Nordic Exchange Iceland has taken decisions on imposing penalties, including fines, whereas prior to this decision making rested with the Board of Directors of OMX Nordic Exchange Iceland. Surveillance is divided into two main areas: market surveillance and disclosure surveillance. The head of legal affairs is responsible for and supervises on-going surveillance. When questions arise concerning the imposition of penalties, a special group reviews cases and takes a decision after the parties concerned have been given an opportunity to express their views. Since the Board of Directors delegated surveillance to the CEO it has not been involved in surveillance matters.

Market surveillance is carried out by employees of the Trading, Legal and Listing divisions. Market surveillance, which is directed at transactions in listed securities, has been substantially aided by the introduction of the SMARTS electronic surveillance systems in 2003. The system is a powerful tool for monitoring trading and detecting securities movements in real time. Market surveillanceOMX Nordic Exchange Iceland also includes investigating suspected violations of the law, e.g. unauthorised insider trading, market abuse, etc. As a result, information from market surveillance is often referred to the Financial Supervisory Authority (FME), which assesses whether there is cause for further investigation. As an example of the efficacy of the system, certain market movements can result in a trading halt if there is a suspicion that insider information may have leaked out.

Surveillance of information disclosure by securities issuers is primarily in the hands of the Listing and Legal divisions. Disclosure surveillance is directed at price-sensitive information from securities issuers and is intended to ensure investors equal access to information. The employees of OMX Nordic Exchange Iceland offer guidance to issuers concerning the format and, as the case may be, the presentation of news contents and request announcements as appropriate. Each of the employees of the Listing division is responsible for specific listed companies to ensure specialisation and prompt response when questions arise.