VPS reduces settlement fees
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.
About VPS
VPS is a company in the Oslo Børs VPS group. VPS supplies infrastructure and services for securities clearing and settlement and for the registration of ownership of securities. The company offers registration services for all the major types of financial instrument that are traded in Norway: shares, bonds, equity certificates, short-term fixed income instruments and fund units.
About Oslo Børs VPS
The Oslo Børs VPS group comprises the companies Oslo Børs, VPS, Oslo Clearing and Oslo Market Solutions. The group operates marketplaces for listing and trading of securities, and provides services for the registration of ownership of securities, clearing and settlement of securities in Norway, financial market data and internet solutions. Oslo Børs VPS is owned by Oslo Børs VPS Holding ASA, and the company's shares are quoted on the Norwegian Securities Dealers Association's OTC list.
For further information, please contact:
Anne Ekeren Bjone, Head of Clearing & Settlement, tel +47 22635300 or +47 92027849 (mobile)
Ole-Wilhelm Meyer, CEO, tel. +47 22635300 or +47 908 45523 (mobile)