Well-functioning securities market is vital for business The securities market involves organised dealing in securities. Banks and investment firms enable the effective operation of the securities market alongside with providers of market infrastructure services. These include, for example, the stock exchange and other trading venues, central counterparties, and the central securities depositary.The securities market is divided into the money market, derivatives market and capital market. However, the term securities market is often used to refer only to the capital market, which involves the issuing of securities (primary market) and stock exchange trading (secondary market).The securities market is strictly regulated on EU level and in national legislation. In 2012, an extensive legislative reform took place in Finland. The most important securities-related pieces of legislation include the Securities Markets Act, the Act on Investment Firms, the Securities Accounts Act, and the acts on clearing and settlement, book-entry system, and trading in financial instruments. These acts are largely based on EU directives. Operations in the Finnish securities market are overseen by the Finnish Financial Supervisory Authority (FIN-FSA) and the European Securities and Markets Authority (ESMA).EU securities market legislation was substantially increased in volume in the wake of the financial crisis. The aim of this new regulation has been on European harmonisation with a Single Rulebook. Large-scale changes have taken place in the derivatives market, custody and clearing services, structures of trading venues, and investor protection. The goal of these changes has been to increase stability in the market and to facilitate cross-border trading.For the European economy to recover, it needs a functioning and efficient securities market. This in mind, the European Commission launched a massive regulatory project to build a Capital Markets Union in the EU. The objective of this ambitious undertaking is to create a single market for capital for all Member States by 2019.FFI is an active member in the Nordic Securities Association. Its other members are the Danish Securities Dealers Association (Børsmæglerforeningen), the Norwegian Securities Dealers Association (Verdipapirforetakenes Forbund) and the Swedish Securities Dealers Association (Svenska Fondhandlareföreningen).