Benefits from Securities Markets and Reforms in Norwegian Securities Legislation

Abstract

This article discusses the ways in which efficient securities markets benefit society, how Norwegian securities market legislation is being modernised to be in line with European standards, and in addition issues related to changes in Norwegian securities market infrastructure. In the first section the social usefulness of securities markets is explained. The most important aspect of this is that smoothly functioning securities markets, together with a well developed financial sector, promote growth throughout the economy. Through the direct transmission of funding from investor to projects, securities markets also contribute to financial stability. The second section deals with amendments to Norwegian securities markets legislation that are under way. Special attention is paid to the European Economic Area and its implications, including the requisite transposition of EU legislation into Norwegian law. The third section discusses the specific tasks performed by the stock exchange and comments on whether the infrastructure organisations of securities markets need to be domestic in order to reap the social benefits of securities markets.