The financial watchdog of Sweden has launched an investigation into whether the country’s stock exchange violated market regulations by not reporting suspected insider trading.

In a statement published Thursday, the Financial Supervisory Authority (FSA) said that it will investigate Nasdaq Stockholm, formerly known as the Stockholm Stock Exchange, for possible breaches during several major corporate events in 2021 and 2022.

The FSA said: "There are strong reasons to initiate an investigation as Nasdaq is a very important player in the market.

“A non-functioning monitoring at the largest operator entails great risks,” it added.

The stock exchange was raided last week by Sweden’s Economic Crime Authority to gather evidence of suspected insider dealing, but added that Nasdaq itself was not under suspicion.

Nasdaq said that it was cooperating with both parties, and that it was conducting its own investigations.

Internal records at Nasdaq show the company had made referrals to the FSA “surrounding transactions in certain stocks that are included in the FSA's investigation.”

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