The main features of settlement of securities transactions carried out in the Norwegian securities market are as follows:

• Dematerialised securities (no physical securities).
• A single central securities depository – VPS (the Norwegian Central Securities Depository).
• Investors are permitted to operate their own accounts with VPS.
  • Domestic holders – must hold securities on their own VPS account.
  • Foreign holders – may hold securities either on their own VPS account or through a nominee.
  • Investors can manage their VPS accounts either through an account operator or directly over the internet.
• Settlement is carried out through an investment firm or a settlement agent.
• The parties that participate in the central securities system for settlement in Norwegian kroner are investment firms, settlement agents and CCPs.
• In order to participate in the central securities system, settlement participants must provide a liquidity guarantee either by holding an account with the Norwegian central bank (Norges Bank) or by having access to an account with Norges Bank through an arrangement with a bank that operates such an account, known as a liquidity bank.
• Delivery versus payment (DvP) – NOK payment in central bank money.
• Multilateral netting.
• Automatic pool-based arrangement for securities borrowing and lending.
• Extended balance checking for availability of cover across multiple accounts.

VPS uses international standards

• Settlement instructions can be given using ISO 15022.
• ISO 6166 is used for Norwegian financial instruments.
• VPS is responsible for allocating international securities numbers (ISIN) in Norway.
• BIC codes are used to identify settlement participants when matching transactions.