The anatomy of the Tallinn Stock Exchange

Abstract

This article gives an overview of the role, microstructure and the present state of development of the Tallinn Stock Exchange (TSE). This topic has not been discussed widely enough by foreign media because the TSE is still quite young, having commenced operations on 31 May 1996.The rules of the TSE allow a certain degree of freedom but at the same time entail fairly high standards for participants.That is one of the reasons why activity on the TSE is growing so rapidly.For the year, the TSE outperformed the stock exchanges in Riga and Vilnius in many areas, as measured by most indicators.The TSE has also provided numerous benefits to both Estonia and companies whose shares are traded.For instance, Estonia's financial system is now considered to have reached a developed stage and companies are finding it easier to raise capital because the TSE provides an objective assessment of their value. Keywords:Equities markets, stock exchanges, Estonia