Henrik Husman: Stock Exchange in an Era of Consolidation
Henri Putkonen
Few people get to experience leading a stock exchange. Through the years of mergers, fusions, and internationalization, Henrik Husman’s work has ranged from options trading to presidency of Nasdaq Helsinki.
Like business school for many, it was a strategic choice for Husman, as his interests were far and wide, enjoying a multitude of subjects. Through the guidance of study counsellors in upper secondary school, kauppis was highlighted as a choice that could be translated into many diverse careers.
Despite owning a stock portfolio since being a 9-year-old and having been especially drawn to subjects that emphasize methodological approaches, the current President of Nasdaq Helsinki initially “had no particular interest in finance”. However, the rigor of the subject appealed to Husman. “At the time, it was by far the most challenging subject, and one had to apply to get in.” Moreover, the choice was guided by logic. “Considering I was still open to multiple choices, I reckoned it was better to apply to the most selective subject. You can always change your major from within finance, but you cannot change to finance itself.”
Nearly three decades later, Husman smiled at a comparison of accounting and finance from a faculty event guiding first-year students in choosing a major: “Do you want a guaranteed Saab or a chance for a Porsche?” Husman decided to pursue the Porsche.
As the president of the stock exchance, Husman regularly takes part in IPO events.
Husman got exposed to the banking sector early on, working summers at KOP (Kansallis-Osake-Pankki, later became a part of Nordea) since the first year of his studies. “At that time, the number of finance students per year was far fewer.” It was more common for firms to call directly to the faculty to ask for recommendations. This is also the case for Husman, as Alfred Berg and SOM called Vesa Puttonen to ask if there were any finance students close to graduation he would recommend. Puttonen gave Husman’s name among others.
During this time, Husman was also interviewed by SOM (Suomen Optiomeklarit). After passing the first rounds of both interviews, Husman got an offer to join in on broking options. As this was something unexplored, something new, he chose SOM, passing on the largest corporate finance house at the time. “Looking back, my career would have looked quite different had I started at Alfred Berg [currently part of ABN Amro].”
The job at SOM was quite hectic. “We were basically glued to the desk from open to close, executing trades. Lunch was brought to us, and we ate at the desk.” Luckily, financial theory, particularly that of derivatives, came in handy. “To be able to crunch numbers is foundational, especially at the start of the career.” Husman points out that nowadays this kind of trading is largely handled by algorithms. It did not take long until Husman was appointed the head of the desk in 1999.
Before the turn of the millennium, Husman’s career took another turn: SOM and Helsinki stock exchange merged, creating HEX. Husman was suddenly no longer brokering options – but instead the VP and head of Market Data. “Stock markets create a tremendous amount of information,” Husman explains. “For example, every trade with its unique volume, price, and participants generates data. Industry-wide, this creates 10 to 30 percent of revenue for stock exchanges.”
In fact, in the 2000s, there have been numerous mergers in the stock markets worldwide. In 2003, OM (Stockholm stock exchange) and HEX merged, ultimately creating OMX. In that moment, the national Helsinki stock exchange became international. “At that time, in addition to heading the market data business in Finland, I was tasked with the market data business in Stockholm too.”
But the mergers did not stop there. In 2005, OMX merged with Copenhagen stock exchange. “The mergers were quite a natural way of evolution considering which way the world was headed. Even in the 20th century, joining the EU and adopting the Euro were events that quite obviously showed which way we were going.” The business model of stock markets is an extremely good example of scalability – combining stock exchanges, creates significant synergies. “Thus, it has been quite obvious that stock exchanges have sought after larger organizations,” Husman points out.
With larger structural changes, also came changes in positions. The Copenhagen stock exchange had long profiled itself as a distributor of market information, which naturally led to making Denmark the new HQ for this function. Afterwards, Husman’s responsibilities pivoted to equities, particularly trading of Finnish, Swedish, and Danish listed stocks and other exchange traded products (ETP), for example warrants, certificates and ETFs.
Equity Market Capitalization (bar, left axis [EUR billion]) and the Number of listed companies (line, right axis) in the Nasdaq Nordic and Baltics stock exchange. Source: World Federation of Exchanges
In 2008, there was a significant merger. In fact, so significant that it was the largest piece of financial news worldwide from the Nordics. Nasdaq made a public offer, and ultimately acquired OMX, leading to Nasdaq OMX. Husman became the VP of the Helsinki division of OMX, while simultaneously heading the equity trading business in Helsinki, Sweden, and Denmark. Finally, in 2016, Husman was appointed President of Nasdaq OMX Helsinki.
“It was a big change. If before I led one business unit, now I was responsible for the whole organization.” Husman’s role became more outward-facing – appearing in media, getting acquainted more broadly with regulation, and giving statements at the Finnish Parliament became new aspects of his job. Through these channels, Husman has had the possibility to have more influence on the development of Nasdaq OMX nationally in Finland and through EU legislation in Brussels. “We have done everything in our power to make sure the environment for the stock exchange is favorable.” Yet, a lot of work remains.
Being a typical expert organization, the Helsinki stock exchange relies a lot on the talent and knowledge of its employees. This is also what is reflected in leading the organization: “Leading experts demand space and freedom to do tasks. Of course, we have a direction and goals, but within the given limits, self-direction is key.” In addition, Husman emphasizes building trust. “To build and uphold trust has a long list of requisites. I personally believe authenticity and openness is vital.”
Even amid change, Husman emphasizes, “I have always tried to be myself even though the culture around us has changed a lot.” Where SOM was more of a startup culture, Helsinki stock exchange a stiff institution. Additionally, the cultural differences in Finnish, Swedish, and American ways of leading a company clashed, while the organization grew.
Nevertheless, Husman has stayed in-house for 28 years this Fall. What are the drivers that keep him returning every day? “I am not an outlier; a lot of people have had long careers here.” Moreover, the firm has transformed through quite a lot throughout the years. “With for example the OM-HEX merger, one could almost say that the combined entity was a new firm. That is how much the day-to-day changed.”
“Especially nowadays, many ponder about the purpose of their firm. For us, it has been extremely clear from the start. We have not had to think whether what we do makes any sense as the role of stock exchanges is so critical for efficient capital formation and wealth creation.” If the variability has kept Husman’s work interesting, the clear goals of the stock exchange have kept it purposeful.
But what are all the lessons this long journey has taught Husman? He returns to the advice he received early on: “Candidly take on new opportunities. Whatever you decide and get a chance to do, do it as well as you can. Ultimately, this leads to new opportunities down the road.” Husman believes this philosophy remains the reason he has never had to actively seek new opportunities, but they have instead been offered to him.
Another, more recent trend Husman wants to bring up is AI. “You really should try to learn use it as a tool. It is a massive asset if you are competent in using it.” Furthermore, the development is extremely rapid. “What was not possible a month ago, can be done with AI today.” For alumni and students alike, the implication is clear – learn the tool and put it to work.
Henrik Husman
Current position: President, Nasdaq Helsinki. VP, European Equities.
Past positions: Head of Market Data, Nasdaq Nordics. Options broker, SOM.
Education: Aalto University School of Business, Finance
Henri Putkonen is the Editor-in-Chief of AFA Quarterly.