VPS, the Norwegian CSD, today introduced a new settlement system. The changes include the introduction of a second batch in every 24 hour period.
“The purpose of introducing multi-batch processing is to reduce settlement failures and to improve liquidity, thereby reducing risk in the market,” explains a Den norske Bank spokesman. “As usual, DnB will continue pre-matching on a best effort basis up until the official cut-off time at the CSD.”
“All in all, the first day under the new settlement regime in Norway including two settlement batches, was concluded satisfactory,” sys Ulf Noren of Den norske Bank in Oslo. “No market participant has reported serious disturbances to production results but, as can be expected in such a major system and operational change-over, a number of fine tuning efforts will need to take place the next few days.”