The operator of the Slovenian regulated capital market is the public limited company Ljubljanska borza, d. d., Ljubljana (Ljubljana Stock Exchange) and it has recently become part of the emerging Central and East European regional market through integration with the Central and East European regional market as part of the Vienna Stock Exchange (VSE) Group represents further development of the Ljubljana Stock Exchange (LJSE) and the Slovenian capital market.

The launch of the first two indices by the CEE Stock Exchange Group maximise the utilisation of VSE Group’s know-how and expertise, and it is a step in the right direction for the shallow Slovenian capital market.

The Ljubljana Stock Exchange (LJSE) and the Securities Market Agency have entered into the agreement on granting the LJSE the authorisation to operate the officially appointed mechanism (OAM) for the central storage of regulated information (so-called CSI in Slovenian). OAM is an information system that enables the dissemination and storage of as well as access to all published regulated information, i.e. the information that LJSE-listed companies are bound to publish pursuant to the Markets in Financial Instruments Act. OAM is anticipated to become operational in the spring of 2010, when it will enable on a special website the interested public to browse all regulated information published by LJSE-listed companies.

Slovenian securities market segmentation (effective 30 June 2008):

• EQUITY MARKET composed of:
  • prime market
  • standard market
  • entry market
• BOND MARKET 
• FUND MARKET composed of
  • Plus Market and
  • General Market

• CLOSED-END FUND MARKET: closed-end fund shares
• Structured products market includes: Certificates (Plus Market and General Market), Warrants, Rights and T-bills

The LjSE market capitalisation in 2009 was 19.67 billion euro – well below the record high in 2007 with 26.66 billion euro. The LjSE turnover hit a record high in 2007 (2226.9 million euro) and 904.0 million euro in 2009. The leading LjSE index in 2010 is SBI TOP (the SBI 20 index is abolished with 2010) and the shares sold to individuals (prime market issuers such as Krka, NKBM) have enjoyed a hefty rise of 33 and 21 per cent respectively.

Fo For further details please see LJSE publications: LJSE Prime Market Issuers 

The Slovenian Government promises large sales of state-owned shares in 2010 with the exception of Luka Koper and NLB and bids by foreign investors are highly welcome.

Investment grade bonds remain attractive in 2010 both in Slovenia and abroad. For corporate bonds the key figure is the spread – the difference between the yield on the corporate bonds and the yield on government bonds considered to be risk-free instruments. In the wake of the financial crisis, spreads on corporate bonds widened as investors feared defaults. Spreads were pushed out also as banks sold corporate bonds with the aim to clear risky assets from their balance sheets.

As soon as the panic died down, there were heavy inflows of assets into investment grade corporate bonds.

A serious disturbance of the Slovenian economy was an echo of the bank collapse in mid-2008 and the global economic crisis that followed in a matter of months. The regulators’ response provided a means to remedy the financial sector as key to the shape and the robustness of the recovery. The financial positions of the credit institutions operating in Slovenia were reviewed to assess capital needs and viability and the arrangements were made for recapitalisation and/or restructuring

of financial institutions.

The Securities Market Agency in charge of supervising the market in financial instruments. Its mission is to maintain a safe, transparent and efficient market in financial instruments. By exercising control over the brokerage companies, banks engaged in investment transactions and services, management companies, investment funds, mutual pension funds, public companies, public-limited companies governed by the Takeovers Act and performing other regulatory tasks, it creates a level playing field for efficient operation of market in financial instruments.

The Agency keeps a list of issued licences to brokerage companies, a list of issued licences to stock exchanges, a list of issued licences to management companies and investment funds, a list of issued licences to clearing and depository houses and lists of issued licences to mutual pension funds and their managers.