Sweden has one of the largest and most active equity markets in the European Union. This report assesses the Swedish market, explores the drivers of this dynamism and provides policy recommendations to further improve its functioning. It draws from an empirical mapping of the market published by the OECD in 2025, as well as from in-depth interviews with market participants. Using original data, it provides insights into the market's evolution over the last two decades, including comparisons with selected peer countries.
The Swedish Equity Market, Assessment and Policy Recommendations 2026
Abstract
Executive summary
The Swedish equity markets, which are among the largest in the European Union (EU) even in absolute terms, have increasingly become a reference point in policy discussions around capital market development, serving as a case study illustrating the approaches that can help promote successful domestic markets. Previous OECD work has highlighted a set of specific policy themes and initiatives, common to consecutive governments, as key drivers of Swedish market dynamism. A changing structure of domestic as well as global markets, however, requires monitoring and, where appropriate, reforms to ensure the continuation of this success. That includes identifying and implementing reforms where changing conditions call for it, but also recognising and safeguarding the underlying policies that have been foundational to market success.
Chapter 1 contains an assessment of recent developments that may merit policy change and specific recommendations to continue strengthening the Swedish market. Chapter 2 provides an empirical mapping of the market, including peer country comparisons.
The main policy recommendations are split into six different areas:
MTF-listed companies. Extend the regulated market obligation to disclose acquisitions or disposals of major shareholdings to also cover transactions in companies with shares listed on an MTF. Extend the current takeover sanction regime to include breaches of the MTF Takeover Rules in addition to those on the regulated market. Consider the establishment of a council or working group with the specific purpose of representing the perspective of MTF-listed companies in discussions with other market stakeholders.
Takeovers. Undertake a review of the legal process following a squeeze-out, with the aim of reducing the time required for the procedure following a takeover bid. Any considerations with respect to the threshold for mandatory bids should be based on an analysis of the effectiveness of the current threshold and the costs and benefits of potential changes.
Foreign direct investment screening. Without prejudice to the legitimate screening of foreign investments for national security interests, undertake a review of the FDI Act with a view to reducing its negative effects on the equity market and reducing costs for both public authorities and companies.
Directed share issues. Review and revise the law implementing a supermajority requirement for directed share issues to board members, executives and employees to bring it in line with the threshold for other directed share issues.
Dialogue with the Financial Services Authority. Initiate a consultation with stakeholders, undertake further analysis and, subject to the findings as well as future developments, consider a revision of the supervisory mandate concerning the authorised balance between supervision and guidance.
Fund market concentration. Continue to monitor developments in fund market concentration and seek to identify possible policy levers to promote competition and diversity in the fund market.
Areas to safeguard and monitor
There are many areas of the Swedish equity market that function well and that are the result of focused, long-term policy efforts. To ensure the continuation of these policies in a context of a changing economic, financial and political climate globally, it is worth emphasising certain policy areas that have been particularly important to the Swedish equity market success.
Empowering shareholder engagement. Recognise the importance of the tradition of active ownership engagement by Swedish investors and monitor the effects of the increasing prevalence of passive investment in this respect.
Investor protection and minority shareholder rights. Safeguard the benefits stemming from the well-established system of investor protection in Sweden and ensure potential changes to the legal and regulatory framework are made in close consultation with market stakeholders.
Regulatory design. Recognise and safeguard the merits of the current regulatory framework. Carefully evaluate the costs of any potential changes to the system.
Investor heterogeneity. Monitor structural changes to the investor base that might reduce heterogeneity benefits, such as excessive market concentration, and include investor diversity as a metric when evaluating policy options.
Public equity markets. Sweden’s public equity markets have the highest number of listed companies in the EU. Total market capitalisation amounts to 194% of GDP, clearly surpassing major peer countries. A key characteristic is the substantial activity by smaller companies. Most public companies in Sweden are listed on a growth market (although these segments have seen net delistings since 2023). The median IPO size since 2000 of USD 9 million is much lower than in peer countries. The growth segments work as a stepping stone to the regulated markets: since 2013, an annual average of 45% of new listings on Sweden’s regulated markets have originated from a local growth market. Returns on the domestic market have been among the strongest in the world; the main broad local market index has consistently outperformed major international indices over long periods of time, including in foreign currency terms.
Private equity markets. Fundraising by Swedish private equity funds has made up nearly a tenth of the European total in recent years, more than three times what its GDP share would suggest. Nearly two-thirds of total fundraising has come from non-European investors, by far the highest share among peer countries in the EU. Swedish companies are also overrepresented as investment targets, having received 60% more private equity investment than economic weight would suggest between 2019 and 2024. Importantly, there is a strong link between the private and public equity markets: uniquely among peer countries, one of the most common ways for private equity firms to divest their holdings of Swedish companies in recent years has been to take them public.
Institutional investors and ownership. The institutional investor base in Sweden is both sizeable and uniquely exposed to the domestic equity markets. The three main public pension buffer funds (AP2-4), managing aggregate assets of more than EUR 200 billion, have an average equity exposure of 51% of total investment assets, of which roughly 28% is domestic equities. The even larger occupational pension fund sector, with total investment assets of more than EUR 285 billion, also allocates about half of its aggregate portfolio to equities, as does the insurance sector. Investment funds had an aggregate market value of EUR 817 billion at the end of 2025, of which EUR 570 billion was direct equity holdings. Sweden also has a long history of family ownership through investment firms. The five largest family-owned investment firms collectively hold over 8% of total domestic market capitalisation, with stakes in major listed companies. They are heavily involved in local equity markets, taking an active ownership role.
Household investment. Swedish households have among the highest levels of participation in capital markets in Europe, with 10% of total financial assets allocated to investment funds and 7% to listed equities. Only 12% is held in traditional currency and deposits – the lowest among peer countries. While direct equity holdings among Swedish households have declined in recent years, there has been a substantial parallel increase in indirect equity investments through funds.
