VPS ASA

The VPS Group comprises VPS Holding ASA and its subsidiaries VPS ASA, Manamind AS and VPS Clearing ASA. Jan Hellstrøm heads up the VPS Group, and is also President and CEO of VPS Holding ASA and VPS ASA – the company probably best known in Norway as Verdipapirsentralen.

How was 2006 for VPS ASA, Mr. Hellstrøm?
It was a very good year. Operations were sound, and we handled larger volumes than ever before. This generated an excellent financial performance, enabling us to lower prices of settlement services and to provide our shareholders with fine dividends.

What were the most important events?
We worked hard to translate good intentions into good practice in 2006. In the course of the year we replaced the entire technical platform for our accounts systems, and also devised new services which we call “Investor Services”. These have been well received, and we are now rolling out the new services to the first customers. At the same time the new technology gives us an opportunity to recycle components with a view to new services for the future.

Last year you said that the Norwegian solutions were attracting international attention. Do you believe that VPS still has a competitive advantage?
I believe that VPS is well to the fore compared with other central securities depositories in Europe. The concept of a securities register for both issuers and end investors is one that many countries are keen to promote. This gives us the opportunity to offer direct access to shareholder information from companies and portfolio information to investors and account operators. We have received much feedback from national and international actors showing that VPS has a range of services that not many others can offer.

What are the most important trends in the securities market at present? Are we still moving towards international harmonisation and standardisation?
The EU is now prioritising efforts to bring about simpler crossborder securities settlements. Numerous initiatives have been taken to harmonise market practice, standardise messaging and stimulate greater competition. VPS was quick to implement such standardisation, and we will continue to do so as and when standards are established. We were, for example, among the first to implement ISO15022 messages for settlement transactions. Moreover, we have undertaken to head up the effort to establish standards in the mutual fund area.

Will this lead to greater competition from foreign actors? Or will developments move towards greater interplay?
We are likely to see both more competition and greater interplay. “Co-opetition” is a word often applied to the present situation in which we have open access to one another’s systems for information exchange. We are also likely to see more competition in regard to where settlement is to take place.

Where will the growth emerge?
Recent years have seen vigorous growth in the settlement area, much of it driven by the stock market upturn, but also by the fact that many private investors are more active in the market. This growth is probably assisted by simple, cheap services now being offered through online trading, and easier access to information. In the mutual fund area growth derives from longterm saving and occupational pensions. We believe growth related to private individuals’ saving in securities will continue – partly with a view to shortterm gains, but possibly primarily to achieve a good return on longterm savings.

What do you see as the most important challenges facing VPS ahead?
I believe that the national infrastructure of which VPS is a part can thrive and grow in an increasingly competitive international climate. We need to ensure fruitful interaction and interplay in the Norwegian market to offer the best services, and to combine them with competitive prices. We are small by international standards, but we can exploit our smallness by being quicker to develop products and to adjust to the world around us.