VPS is to reduce the fee charged for settlement of exchange trades in the Norwegian market by approximately 22% with effect from 1 November. The fee for such transactions will be reduced from NOK 3.20 to NOK 2.50.
Over recent years, central counterparty clearing (CCP clearing) of equities trading has become virtually the industry standard in the European securities markets. All the Nordic markets are due to introduce CCP clearing over the next six months, and the Norwegian market will move onto CCP clearing in March 2010. One of the benefits of CCP clearing is a reduction in transaction costs for stockbroker firms as a result of transaction netting, which means that only net positions are submitted for settlement.
In order to be competitive with other venues that are introducing CCP clearing for trading in the Norwegian market, VPS is reducing the fee it charges on broker-to-broker transactions. The revised fee will apply from 1 November 2009 until CCP clearing is introduced in the Norwegian market.
If this change in fees had taken effect from the start of the year, the effect on operating revenues for the first six months, based on the level of activity in this period, would have been NOK 10 million.
D.C.