Surveillance at NASDAQ OMX Riga

The securities market in Latvia is regulated and supervised by the Finance and Capital Market Commission (FCMC). The FCMC conducts supervision of the securities market on behalf of the state in order to enhance the stability and reliability of the entire financial sector.

The objective of the legal regulation is to ensure regular and lawful operation of the market. The main functions of the regulatory framework are:

to protect interests of investors;
to ensure lawfulness, reliablity, efficiency and transparency of the market;
to reduce systemic risks.

NASDAQ OMX Riga performs market supervision over market participants and issuers of securities traded on the market, with respect to the price formation of the securities traded on the market, conclusion and execution of transactions and fulfillment of provisions of the Rules and Regulations adopted by the Exchange. In the event of a failure to comply with law, other regulations, or the Exchange’s regulations in general, the Exchange may take the case to the Management Board. Starting with January 2007, NASDAQ OMX Riga Surveillance Committee will commence its operations. The RIG has delegated a part of its functions related to surveillance of regulated market to an independent body. Delegating a part of surveillance functions to an independent body will eliminate any conflict of interest potentially to arise in a situation when the NASDAQ OMX Riga is the market organizer and the surveillance body at the same time.

Surveillance Committee

NASDAQ OMX Riga has delegated a part of its functions related to surveillance of regulated market to an independent body - Surveillance Committee.

Starting with January 2007, NASDAQ OMX Riga Surveillance Committee will commence its operations. NASDAQ OMX Riga has delegated a part of its functions related to surveillance of regulated market to an independent body. Up to now the sanctions to issuers and members in case of breach of the RIG rules were applied solely by the RIG Management Board. Now the Surveillance Committee will have the authority to take more serious surveillance decisions. The Committee consists of experts who are not related to the RIG. Delegating a part of surveillance functions to an independent body will eliminate any conflict of interest potentially to arise in a situation when the NASDAQ OMX Riga is the market organizer and the surveillance body at the same time.

Surveillance Committee members are approved by the NASDAQ OMX Riga Council. Surveillance Committee consists of 7 independent experts with adequate education and expertise in the capital market and legal issues. Surveillance Committee on its first meeting elected Viktors Gustsons Chairman of the Committee, and Edgars Līvmanis his deputy.

The ongoing surveillance of the issuers and members will remain the duty of the NASDAQ OMX Riga specialists, who will be responsible for preparing materials for the needs of Surveillance Committee. The Committee decisions may be appealed to the Financial and Capital Market Commission, arbitration court or court.

Comparable disciplinary bodies are already operational at OMX Nordic Exchanges. In the Baltic market NASDAQ OMX Tallinn has a body with similar functions.

Surveillance Committee members

Viktors Gustsons
Education	University of Latvia, Faculty of Economics and Management, Master degree in Economics
Position	Compensa Life Vienna Insurance Group SE Latvia branch, Member of the Management Board

Lauris Liepa
Education	University of Latvia, Faculty of Law, Master of Laws Mag.iur
Position	Law Office „Liepa, Skopiņa / Borenius”; Attorneys-at-law, Partner; University of Latvia, Lecturer (Legal Ethics, Legal Methodology, Property Law); Riga Graduate School of Law, Senior Lecturer (Legal Ethics)

Edgars Līvmanis
Education	University of Latvia, Faculty of Law, Master degree in International Law
Position	NCH Advisors Inc., lawyer

Jānis Leja
Education	CPS validated by the University of Oxford, United Kingdom, Diploma (management & economics); University of Latvia, Faculty of Physics and Mathematics, Diploma (optics & spectroscopy)
Position	Latvian Chamber of Commerce and Industry

Māris Purgailis
Education	University of Latvia, Faculty of Economics, Dr.of Economics, Associated Prof.
Position	University of Latvia, Faculty of Economics and Management, dean, Associated Prof., Dr. of Econ.; Director of Institute of Marketing and Quality Management (University of Latvia, Faculty of Economics and Management)

Rolands Paņko
Education	Riga Technical University, postgraduate studies, Organization and Management of external economic affairs; Riga Technical University (Riga Polytechnic Institute), Diploma (engineer constructor)
Position	JSC „Latvijas Hipotēku un Zemes banka” (Mortgage and Land Bank of Latvia), Deputy Chairman of the Management Board

Uldis Zelmenis
Education	University of Latvia, Faculty of Economics and Management, Finance and Credit, Master of Science in Economics; University of Applied Sciences Weihenstephan, Germany, postgraduate studies in Management and Economics
Position	Joint Stock Life Insurance Company „BTA”, investment portfolio manager; G&Z Investment Advisors SIA, chairman of Management board/director