Nordic Capital Markets Overview

Efficient capital markets foster innovation, growth and businesses that are fit for the future. The EU has a stated ambition to increase the efficiency of the pan-EU capital market under the Capital Markets Union plan. The NSA support this ambition and we work with policymakers and regulators at various levels in the EU to foster dialogue based on our experiences from the Nordic markets.

A range of measures can be used to illustrate the role of capital markets in the local economy. Stock market capitalisation per capita is one widely used measure and, based on that metric, the Nordic markets rank at the very top in Europe (see figure below).

IPOs and SME financing in the Nordics

The number of new companies listed on the stock exchange through IPOs has been very high in the Nordics for several years. In 2020, there were more than 250 IPOs and many of these were made on Nordic markets favoured by SMEs such as Nasdaq First North and Euronext Growth, substantially outperforming markets in Continental Europe and the UK (see figure below).

The ability to raise risk capital for the business sector is outstanding in the Nordics. Nordic markets raise more capital and funding to businesses through equity capital and high yield bonds to a greater extent in relation to the markets size than other markets in Europe. The market for financing SMEs is particularly vibrant in the Nordic region.

In summary, Nordic capital markets are fully integrated in the business sector and play a vital role in raising risk capital and funding for businesses as well as and providing other financial services to the business sector. The Nordic capital markets also offer a wide array of investment alternatives to professional and retail investors.