Organized market
Under the legal term organized market , securities law describes a market that allows market participants, on the basis of a market regime, to buy and sell financial instruments admitted to trading through financial contracts .
General
In the economy , the organized market is generally a market in which supply and demand meet at certain times in a certain place. Not only time and place are organizational tools of an organized market, but also an appropriate structure and process organization must be available.
Stock exchanges generally correspond to this definition, with individual stock exchange segments such as the open market being unorganized markets within the meaning of securities law. Organized markets are always monitored and controlled by the state (or state-recognized bodies such as supervisory authorities ( stock exchange supervisory authorities ) and / or the central bank ) and can be influenced in terms of macroeconomic goals .
Legal issues
Various laws provide legal definitions for the organized market. The former Investment Act understood it to be a market that is recognized and open to the public and that functions properly. For the applicable Securities Acquisition and Takeover Act (WpÜG), the organized market in accordance with Section 2 (7) WpÜG is the regulated market on a domestic stock exchange and the regulated market within the meaning of Art. 4 (1) No. 21 of Regulation (EU) No. 65/2014 Directive 2004/65 / EC of the European Parliament and of the Council of May 15, 2014 on markets in financial instruments .
A detailed legal definition of the organized market can be found in Section 2 (11) of the WpHG , according to which the organized market is a multilateral market that is operated or managed in Germany, in another EU member state or another signatory to the European Economic Area , and is approved, regulated and monitored by government agencies A system that brings together or promotes the interests of a large number of people in buying and selling financial instruments admitted to trading there within the system and in accordance with non-discretionary provisions in a way that leads to a contract for the purchase of these financial instruments. According to section 2 (22) of the WpHG, the organized market is a trading venue .
classification
Due to existing laws, the organized market is to be viewed as a generic term for regulated markets and regulated markets. Both market segments thus represent two sub-areas of the organized market. An organized trading system is not one of the organized markets.
economic aspects
This type of market offers a number of advantages to both buyers and suppliers of financial products in organized markets. Official monitoring and the regular stock exchange hours on trading days reduce the risk of market manipulation and illegal transactions for all market participants .
The entry to the organized markets requires issuers compliance with licensing requirements. The prerequisite for stock exchange trading is the admission of the securities by the admission office, whereby the issuer must apply for admission together with a credit institution ( Section 32 (2 ) BörsG ), unless the applicant is a credit institution himself. In both cases, the credit institution must be admitted to a domestic stock exchange with the right to participate in trading. The essential basis for admission is a securities prospectus based on the Securities Prospectus Act . Underlying values (especially securities ) and rights that are to be traded on the stock exchange and are not admitted to trading on the regulated market or included in the regulated market or the open market require admission to trading by the in accordance with Section 23 (1) BörsG Management of the stock exchange. Admission to the regulated market is regulated in § § 2 ff. BörsZulV .
These approval procedures cause the issuer to incur costs for the necessary public relations work and place high demands on the accounting of the listed companies.
