DEFINITION of 'Iceland Stock Exchange – ICEX'
A stock exchange located in Reykjavik, Iceland. The Iceland Stock Exchange was established in 1985, as a joint venture between some of Iceland's brokerage firms and banks, initiated by Iceland's Central Bank.
In 1986, trading began in Icelandic T-bonds; in 1990, housing bonds, mortgage-backed securities with a State guaranty, were added. Also in 1990, the exchange's first equities were listed and by 1992, the exchange started gathering momentum, with an average of six new listing per year.
BREAKING DOWN 'Iceland Stock Exchange – ICEX'
Its official name is Nasdaq OMX Iceland. In 1998, a new law required the Iceland Stock Exchange to alter its legal status from a self-owned institution, to a limited company with shareholders.
In 2002, a new holding company, Eignarhaldsfelagið Verðbrefaþing hf., was established to operate both the ICEX and the Icelandic Securities Depository (ISD). This holding company is owned by financial institutions, listed companies, pension funds, the Central Bank, the Investor Association and the Treasury.
The Iceland Stock Exchange joined the NOREX Alliance in June, 2000. The NOREX Alliance was established in 1998, to create a cooperative Nordic securities market using a joint trading system and common trading rules.