Helsinki, August 29, 2014 – The Disciplinary Committee of NASDAQ OMX Helsinki (the “Exchange”) has imposed a public warning and a fine of EUR 100,000 to Rautaruukki Corporation (trading code: RTRKS) due to the breach of the Rules of the Stock Exchange (the “Rules”). In August and September 2013 the company did not provide the Market Surveillance of the Exchange the necessary information required by the the Rules. Furthermore, the company breached the obligation to maintain adequate administrative procedures required by the Rules.
Rautaruukki Corporation disclosed a company announcement on January 22, 2014, stating “SSAB and Rautaruukki to combine through SSAB making a recommended share exchange offer to Rautaruukki’s shareholders”. Rautaruukki had been negotiating to combine the steel businesses with SSAB already since November 2011. Rautaruukki had established a project-specific insider register at that time. After several phases the negotiations led into the disclosure of the plan in January 2014 to combine the two companies through a public share exchange offer.
There were unexceptional patterns in the trading of Rautaruukki share in August and September 2013. The price and the trading volumes of the company’s share rose several times remarkably. The Market Surveillance of the Exchange contacted the company multiple times during August and September 2013 and requested for information of possible reasons for the unusual price movements of the company share. All concerns if the company had possible ongoing significant projects or undisclosured information were denied by the key contact persons.
According to the Exchange Rule 8.1.1 (as of July 1, 2013, currently the Rule 9.1.1), the Exchange is required to provide sufficient and reliable surveillance in the market to avoid and detect any malpractice activities and in order to promote public trust. According to the Rule 8.1.2. (as of July 1, 2013, currently the Rule 9.1.2), the responsibility of the listed company is to cooperate and provide any information required by the Market Surveillance of the Exchange. The breach to comply may hinder proper market surveillance and affect possible investigations.
The Disciplinary Committee stated that Rautaruukki Corporation as a listed company is responsible to cooperate with the Exchange. The administration is not organized in an adequate manner if a person nominated to be a contact person for the Exchange is not aware of the company’s current specific projects. Furthermore, to comply with the requirement of the adequate administration, it is necessary that the role of the Exchange as a supervisor of the trading is clear to the listed company.
The Disciplinary Committee states in its resolution that Rautaruukki Corporation has breached the Rules 8.1.2 (as of July 1, 2013) and 22.214.171.124 regarding its obligation to provide information to the Exchange for surveillance purposes as well as the related obligation to maintain adequate administrative procedures. Taking into the consideration the size of the transaction and the effects to the market surveillance, the breach is considered to be serious. Based on the Rule 8.2.3 (currently 9.2.3), the Disciplinary Committee imposed a warning and a fine of EUR 100,000 to Rautaruukki Corporation. The main argumentation and the resolution statement shall be disclosed by the Exchange.
This press release contains the main argumentation and the resolution statement by the Disciplinary Committee.
NASDAQ OMX Nordic Foundation
The Disciplinary Committees of NASDAQ OMX Helsinki, NASDAQ OMX Copenhagen and NASDAQ OMX Stockholm may, in case of a breach by a member or a listed company, resolve to fine the member or the listed company. The paid fine is transferred to the NASDAQ OMX Nordic Foundation for the promotion of the foundation’s objective, which is to promote scientific research of the financial markets in Finland, Denmark and Sweden, providing impetus for increased competence and competitiveness for these financial markets. Three of the directors of the Foundation shall have extensive academic experience within the field of financial markets.
Surveillance at NASDAQ OMX Helsinki
The surveillance unit of NASDAQ OMX Helsinki investigates all suspected breaches of regulations. Minor breaches will result in written criticism to the company, whereas more serious cases are referred to the Disciplinary Committee. The members of the Disciplinary Committee are legal and financial experts independent of NASDAQ OMX Helsinki. The Chairman of the Committee is Mr. Mikko Tulokas, Supreme Court Justice, and the members are Professor Risto Nuolimaa, Professor Kalervo Virtanen and Mr. Simo-Pekka Helander LL.M. Sanctions for a listed company may be a warning, a fine or delisting. For more information about the Disciplinary Committee visit www.nasdaqomx.com/listing/europe/surveillance/helsinki
About NASDAQ OMX Group
NASDAQ OMX (NASDAQ: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents. Through its diverse portfolio of solutions, NASDAQ OMX enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today’s global capital markets. As the creator of the world’s first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. NASDAQ OMX is home to more than 3,400 listed companies with a market value of over $8.5 trillion and more than 10,000 corporate clients. NASDAQ OMX Nordic is not a legal entity but describes the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm and Iceland. To learn more, visit www.nasdaqomx.com.
Cautionary Note Regarding Forward-Looking Statements
Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. NASDAQ OMX cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to, statements about our capital return initiatives. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX’s control. These factors include, but are not limited to, NASDAQ OMX’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in NASDAQ OMX’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q which are available on NASDAQ OMX’s website at http://www.nasdaqomx.com and the SEC’s website at www.sec.gov. NASDAQ OMX undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
MEDIA RELATIONS CONTACT:
tel. +358 (0)9 6166 7274