OMX and NOS ASA, the Norwegian Futures and Options Clearing House and technology provider, have entered into a technology partnership.
The aim, says OMX, is to create a more efficient Nordic Baltic market for clearing and settlement of derivatives by NOS joining the other Nordic securities markets on a common technology platform and to build a “next generation” clearing system for the global securities industry.
OMX says NOS shares its vision of a consolidated Nordic Baltic derivatives clearing platform. The long term realization of this vision also includes plans to start joint development of a next generation clearing system.
“The agreement with OMX will secure NOS’ long term role as provider of clearing services to the Norwegian market as well as help us to further strengthen our business by improving our clearing solutions through new products and functionality,” says Morten Erichsen, CEO of NOS ASA. “The cooperation gives NOS a long term strategic role in the future development of the integrated Nordic Baltic market. We are proud and excited to participate in the creation of next generation clearing platform for the global market.”
As a first step NOS will replace the current financial clearing system, FOCS, with OMX’s SECUR clearing system by 2006. NOS will also outsource the operation of the new platform to OMX for a period of ten years.
Together, OMX and NOS will evaluate how to set up a development cooperation and will explore if Qepta, the commodity clearing system developed and used by NOS today, can be further developed to a next generation derivatives clearing platform. For this purpose OMX will acquire a licence for Qepta.
“The partnership with NOS simplifies pan-Nordic derivatives clearing and is another important step in making the Nordic Baltic derivatives market more efficient,” says Magnus Bcker, CEO of OMX. “Combining NOS’ and OMX’s technology assets, competence and experience to create a next generation clearing system, will reinforce our market leading position.”