Turutehingud

Turutehingud, Estonian for "market transactions," refer to the execution of trades in financial markets. They encompass the purchase and sale of financial instruments and commodities, including equities, bonds, derivatives, currencies, and physical or financial commodities. Turutehingud can take place on licensed trading venues such as stock exchanges and derivative markets, or directly between counterparties in the over-the-counter (OTC) space. The common aim is to achieve an agreed price, quantity, and settlement terms for a trade.

Typical lifecycle: an investor submits an order through a broker or trading platform; the order is routed to a suitable venue or counterparty; a matching engine or negotiated trade determines the counterparties and price. The trade is reported to trade repositories or the exchange, cleared by a central counterparty (where applicable), and settled through a post-trade settlement system. Clearing houses, custodians, and settlement banks play key roles in guaranteeing performance and delivering instruments and funds. Liquidity and transparency depend on the mix of venue types and regulatory framework.

Regulation and oversight: In the European Union, market transactions are governed by MiFID II, EMIR, and CSDR, among others, with national authorities supervising market participants, trading venues, and post-trade infrastructure. Compliance issues include best execution, trade reporting, and risk controls. Data from Turutehingud informs price formation, market liquidity, and financial stability analyses.