As many European markets and other Nordic exchanges have implemented equity CCP applications, Oslo Brs VPS Group takes proper consideration whether to follow their examples or not.
This autumn, Oslo Brs VPS consulted with the majority of its members in order to decide whether a similar solution should be implemented for the Norwegian equity market. An important consideration is market participants’ increased focus on risk. The Board of Oslo Brs has now decided that a CCP solution is to be implemented for equities traded on Oslo Brs and on Oslo Axess, including trading in equities, Primary Capital Certificates (PCCs)and Exchange Traded Funds (ETFs).
The Board of the Oslo Brs VPS Group is positive to the implementation of CCP clearing for equities within the Group. The Group also believes that it is in the best interest of all parties to establish its own CCP, which would be open to requests for interoperability from other CCPs. A potential development of an internal CCP will be done through the subsidiary Oslo Clearing.
Settlement will be take place at VPS as is the case today. The final decision is expected to be made during the first quarter of 2009 and will depend on authorisation from the Financial Supervisory Authority of Norway.
Oslo Brs has decided to await its decision on the solution and time frame for the implementation of a CCP until the decision of the Oslo Brs VPS Group concerning the establishment of an internal CCP solution has been made.
L.D.