The Exchange Regulation (“Børsforskriften”) for Nasdaq Oslo ASA regulates what tasks Market Surveillance at exchange shall perform.
The main task for Market Surveillance is to monitor the market participants’ orders, trades and reporting of off-order book trades in the financial market. If there is suspicion of any breach of the trading rules Market Surveillance shall gather information and investigate according to the proceedings described later in this section.
Market Surveillance has an important role in building market confidence, and in this context, performs advisory service towards market participants as to the principal and practical compliance of the trading rules.
The main tasks of Nasdaq Commodities' Market Surveillance can be divided into four main areas.
The first two areas deal with market participants' obligations to provide information to the exchange and to the market for transparency purposes. Information from the market participants constitutes essential input for any further investigations:
1. Reporting of off-order book trades
All market participants shall report off-order book transactions to Nasdaq Oslo. The main rule is that the reporting must take place within 15 minutes from the trade agreement time and must include the correct information of the trade. The details are described in the Market Conduct Rules § 2.
2. Disclosure of inside information
All market participants shall, when in possession, immediately publish all inside information. In general, this covers all information of a precise nature which has not been made public relating directly or indirectly, to one or more products, and which Market Participants would expect to receive in accordance with accepted market practice. The full definition of inside information is described in the Market Conduct Rules § 5.
The two next areas deal with market participants' market conduct and actual trading:
3. Insider trading
Market participants are prohibited from trading when holding inside information. This is valid until the information has been made public as defined in the Market Conduct Rules § 5.
4. Market manipulation
Market participants shall not engage in market manipulation as defined in The Norwegian Securities Trading Act and in Enclosure 1 to the Market Conduct Rules.