Ljubljana Stock Exchange Regulated Market

Overview

The Ljubljana Stock Exchange (LjSE) is the principal securities market in Slovenia. Its **Regulated Market** (RM) is a fullyfeatured, EUcompliant platform that allows companies to raise capital and investors to trade a wide range of financial instruments. Established in 1994, LjSE has evolved from a modest domestic market into an integrated part of the European capitalraising ecosystem, adhering to the EU Market Abuse Regulation (MAR) and the Markets in Financial Instruments Directive II (MiFIDII).

Market Structure

The Regulated Market is divided into several subsegments, each designed to match the size and growth stage of listed entities:

• Standard Segment The main tier for established companies with a proven track record.
• Growth Segment Tailored for small and mediumsized enterprises (SMEs) seeking a more flexible listing regime.
• Bond Segment Dedicated to corporate and government debt securities.
• ExchangeTraded Funds (ETF) Segment Hosts a range of passive investment products.

All segments share a common electronic orderbook system, providing realtime price discovery and transparent transaction records.

Listing Requirements

Standard Segment

Growth Segment

Both segments require compliance with antimoneylaundering (AML) rules and a fitandproper assessment of directors and major shareholders.

Trading Rules

Trading on the Regulated Market is conducted through an electronic limitorder book managed by the LjSE trading system (LjSETS). Key features include:

• Trading Hours: 09:0017:00 CET, Monday to Friday.
• Order Types: Market, limit, stoplimit, iceberg, and fillorkill orders.
• Matching Algorithm: Pricetime priority, with automatic pricetime matching for large orders (LiquidityProviding Orders).
• Shortselling: Allowed under EU shortselling regulations; borrowing must be documented and reported to the ATVP.
• Clearing & Settlement: Central Counterparty (CCP) Ljubljanski Koda provides T+2 settlement in euros.

Regulation & Supervision

The Regulated Market operates under the supervision of the Securities Market Agency (ATVP), which enforces EU directives and Slovenian national legislation. Core regulatory pillars include:

• MiFIDII ensures investor protection, market transparency, and best execution.
• Market Abuse Regulation (MAR) prohibits insider dealing, market manipulation, and mandates disclosure of insider information.
• Prospectus Regulation governs the content and approval process for prospectuses.
• EMIR applies to derivatives cleared through the LjSE CCP.

All participants (brokers, issuers, market makers) must be authorized by the ATVP and adhere to a robust code of conduct.

Key Statistics (2023)

Liquidity is concentrated in a few bluechip stocks, notably Krka, Mercator, and Zavrtnica. The Growth Segment has attracted increasing SME participation, reflecting the governments StartUp Slovenia initiative.

Future Outlook

The LjSE Regulated Market is positioned to benefit from several trends:

• Regional Integration: Ongoing cooperation with the Vienna Stock Exchange and the Central European Stock Exchange (CESE) creates crossborder trading opportunities.
• Sustainable Finance: A new ESGfocused listing segment is under development, encouraging green bonds and sustainabilitylinked equities.
• Digitalisation: Plans to adopt blockchainbased posttrade settlement aim to reduce settlement risk and improve efficiency.
• Investor Base Expansion: Educational programmes and tax incentives are expected to boost retail participation, especially among young investors.

While the market remains modest in size compared with larger European exchanges, its strong regulatory framework, transparent governance, and focus on SME growth provide a solid foundation for sustainable expansion.