VPS has had its best year ever. We managed to keep costs stable, and revenues rose 25 per cent compared with 2004. Activity in the market was at unprecedented levels and the securities systems demonstrated their robustness and efficiency. Even with over 60 per cent growth in transaction volumes, the systems operated seven days a week, 24 hours a day.
The solutions opted for in Norway's securities market attract international attention. The combination of end-investor accounts and well-developed services for issuers makes Norway a leading country in terms of efficient infrastructure for securities handling. Companies have direct access to a continuously updated share register, and investors can access account services, carry out purchases/sales and receive all the information they need direct via the internet. We believe that developments in Europe are headed towards similar solutions, providing us with a good head start in terms of efficiency and service innovation. This infrastructure also enables a high degree of transparency as regards securities ownership. A governmental committee has considered widening the scope for nominee registration in Norway, but unanimously recommended continuing the present systems.
However, it is also imperative to adjust securities solutions to the international market so that Norway does not come across as anomalous and inaccessible. To this end VPS has invested, in conjunction with its customers, in an upgrading programme to bring Norway's settlement systems up to international standards. Norway is a leading country in terms of introducing the new online reporting regime. We expect to see a substantial harmonisation of market practice and increased standardisation in the years ahead. Together with its customers, VPS intends to be at the cutting edge of this trend. Along with other Nordic securities depositories we have taken an initiative, known as NordiConnect!", designed to link together the Nordic countries' infrastructures. The aim is to make it simpler and cheaper for customers to carry out cross-border settlements.
We are also keen to reduce our own costs. We believe that by teaming up with other IT players, technology and operating expenses can be shared – providing benefits to our customers in the form of lower prices and even better services.
We wish to mark ourselves out at the forefront of technology utilisation, and have initiated a development programme based on services-oriented architecture. This architecture will enable much improved integration of our services with our customers' internet banks and customer portals. In the first round we will upgrade our investor services, adding new functions to simplify their use.
The Norwegian parliament has opted for the establishment of solutions providing users with an overview of their pension entitlements. VPS believes this can be done in a simple, effective way by borrowing technology and solutions from the securities field. We envisage basing such services on data from pension funds, insurance companies and others. Users will enjoy a complete overview of active pensions and paid-up policies. The intention is to make the overview available by way of online banks, "My page" and traditional phone/mail.
VPS will play its part in making the Norwegian solutions as effective and efficient as possible, while at the same time interacting with international players to maintain the Norwegian market's high competitiveness. .
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President and CEO Jan Hellstrøm
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