Browsing by Author "Ahmala, Eliel"

The purpose of this thesis is to examine differences between securities holding systems from the perspective of shareholder transparency with a special focus on the state of affairs in the European Union, and more specifically Finland. Drawing on interdisciplinary sources, including legal professionals and historical commentators, it explains why two main types of securities holding systems continue to exist in the world today despite increased interconnectedness and harmonization in the field of securities law. Moreover, the thesis explains how recent European Union legislation, specifically the Central Securities Depository Regulation, affect the landscape of securities holding in Finland. The thesis explains how the reasons for the success of the indirect holding system can be largely attributed to the time period and historical context during which it was implemented in most of the developed world, and not necessarily to any of the possible benefits the system can offer over more direct forms of securities holding – forms which have become more prevalent due to advancements in information technology. Furthermore the thesis shows how the limited degree of post-trading transparency inherent to most indirect holding systems can create problems for shareholders, governments, and the financial system as a whole. Problems with the indirect holding system during the 2008 financial crisis have fuelled the recent trend towards increased transparency. This thesis considers this trend as a positive one and sees the current Finnish holding system as being ahead of most countries in this regard.