DEFINITION of 'Iceland Stock Exchange – ICEX'

The Iceland Stock Exchange (ICEX) is a stock exchange located in Reykjavik, Iceland, established in 1985. It was set up as a joint venture between some of Iceland's brokerage firms and banks, initiated by Iceland's central bank. The Iceland Stock Exchange’s regulatory agency is the Icelandic Financial Supervisory Authority.

BREAKING DOWN 'Iceland Stock Exchange – ICEX'

The Iceland Stock Exchange began trading in Icelandic T-bonds (Treasury bonds) in 1986; 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 listings per year. 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.

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.

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 merged with OMX in 2006, which was then acquired by Nasdaq in 2007. The Iceland Stock Exchange’s official name is now Nasdaq Iceland. The Iceland Stock Exchange has a small number of holdings in sectors such as industrials, health care, tourism, financials, consumer services and goods, telecommunications, and oil and gas. It trades in Icelandic Krona (ISK), the currency of Iceland. Though it is a small exchange, it has grown rapidly since inception. 

Investing in the Iceland Stock Exchange

Because of the small market, those wishing to invest within the Iceland Stock Exchange have to open an account with a local member of the exchange. There are a small number of firms in Iceland authorized to trade on the exchange. Retail investors, both domestic and foreign, may open an account with one of the main banks.

RELATED TERMS
  1. Nordic Tiger

    Nordic Tiger is a term for the Scandinavian nation of Iceland. ...
  2. Stockholm Stock Exchange (STO) ...

    The Stockholm Stock Exchange is the main securities exchange ...
  3. Nasdaq National Market Securities ...

    The NASDAQ National - Nasdaq NM is the market, comprising more ...
  4. The European Free Trade Association ...

    Learn about the European Free Trade Association (EFTA)
  5. European Economic Area (EEA) Agreement

    The European Economic Area (EEA) Agreement is an agreement made ...
  6. Milan Stock Exchange (MIL) .MI

    The Milan Stock Exchange is Italy's securities market. It merged ...
Related Articles
  1. Insurance

    Iceland's Near Collapse: What Can We Learn?

    This thriving country was brought to its knees by the rapid growth - and subsequent decline - of its banking industry.
  2. Retirement

    Retire In Iceland With $200,000 of Savings?

    Iceland isn't cheap. Yet, by eating and drinking local products, ditching the car and flying budget airlines, affordable retirement may just be feasible.
  3. Retirement

    Iceland's Top Retirement Destinations

    Remote landscapes and rugged beauty are a given. But the country also offers lively metropolises, brimming with cultural activities and key amenities.
  4. Tech

    What Is Auroracoin?

    Auroracoin is Iceland's proposed national cryptocurrency.
  5. Personal Finance

    The World's Top Emerging Airlines

    Investopedia explores the top emerging airlines in the world and their prospects for growth.
  6. Investing

    Who Owns The Stock Exchanges?

    As M&A heats up among the exchanges, here's how the market currently looks.
  7. Investing

    Stock Exchanges: A Global Tour

    Check out the history and inner workings of the world's six most well-known stock exchanges.
RELATED FAQS
  1. Which countries have the highest tariffs?

    Find out which countries have the most restrictive import tariffs on international products, based on data collected by the ... Read Answer >>
  2. What are all of the securities markets in the U.S.A?

    Securities can be bought and sold via a number of exchanges in the US. Learn about the major and somewhat lesser-known U.S. ... Read Answer >>
  3. Move from an OTC to a major exchange

    In order to move a company from over-the-counter market to a major exchange, a number of conditions must be met to being ... Read Answer >>
  4. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    Discover some of the primary advantages and disadvantages that exist for companies listed on the Nasdaq exchange rather than ... Read Answer >>
  5. How does the balance of payments impact currency exchange rates?

    Take a brief look at the relationship between a nation's balance of payments and the exchange rate value of its currency ... Read Answer >>
Trading Center