Requirements for participation in VPO NOK
Participation is decided by VPS based on criteria set out in the VPO NOK Rules.
Processing of the application by VPS
The application must be sent to VPS, who will determine whether the conditions for participation in VPO NOK are met by the applicant. In addition to the requirements mentioned above, VPS may require the applicant to provide additional information or documentation if it deems necessary for processing the application. VPS shall process the application as soon as possible, after having received all the necessary information. VPS will notify the applicant as soon as the application is satisfactory. VPS will approve the applicant as a participant in VPO NOK by entering into a Settlement Agreement with the applicant.
Information and eligibility requirements for Participation in VPO NOK
Participation is based on criteria set out in the VPO NOK Rules.
Basic legal requirements
- The applicant must be eligible according to the VPO NOK Rules section 5.1, and enter into the Settlement Agreement in which the VPO NOK Rules are accepted.
- The applicant must enter into the Account Operator Agreement for VPS account operators. By entering into this agreement the applicant accepts the VPS Business Terms & Conditions for account operators.
- The applicant must enter into an agreement with Norges Bank regarding the holding of a VPO LOM account (account providing access to Norwegian Central Bank money). Alternatively, the applicant may enter into an agreement with a settlement bank to act as Liquidity Bank (authorised Liquidity Banks are listed on the www vps.no) on behalf of the applicant. Such arrangement may be subject to conditions stated by VPS.
- The applicant must meet the technical and operational requirements set out by VPS in order to input settlement instructions in VPO and to execute, receive and respond to the relevant instructions.
Information and documentation requirements
- Description of the authorisations to be applied for in VPO NOK (Investment Firm, Settlement Agent, Clearing House). Cf. VPO Rules Section 3.
- Documentation of all authorisations required for the applicant to perform its business, which the participation in VPO is based on, cf. the VPO Rules Section 5.1. Legal authorisations must correspond to the technical authorisations applied for by the applicant.
- Copy of the VPO LOM agreement with Norges Bank and settlement in VPO, or confirmation by a Settlement Bank which has agreed to act as Liquidity Bank on behalf of the applicant in VPO (Liquidity Guarantee, cf. VPO Rules Section 5.5).
- Information on whether and to whom the applicant intends to outsource any part of its settlement operations in connection with the participation in VPO. (To be approved by VPS, cf. VPO Rules Section 6.3.)
- Information on Registration Mandates (Power of attorney) to be issued by or in favour of the applicant. (Only applicable for a Central Counter Party (CCP).)
- Certificate of Registration of the company.
- The signature list of the company.
Technical requirements – Channels of communication
- WEB interface
- Secure system to system connection. Formats used are ISO 15022 and ISO 20022
- IBM Websphere MQ
Additional information and requirements for participants not domiciled in Norway
- Authorizations granted by national and Norwegian authorities to offer cross border services in Norway.
- Legal opinion6 confirming that the applicant is subject to supervision according to EEA -standard and regulation corresponding to Directive 2005/60/EC of the European Parliament and of the Council of 26th October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing.
- Legal opinion6 confirming the validity and enforceability of VPS’ business terms and conditions and the VPO NOK Rules under the laws of the applicant’s home state and if relevant, other law regulating the business of the applicant. For applicants domiciled within the EEA, the legal opinion must confirm that the EU Directive 98/26/EC on Settlement Finality in Payment and Securities Settlement Systems (the Settlement Finality Directive) is implemented in the home country, or the relevant jurisdiction of the applicant, and that the VPS’ securities settlement system under Norwegian law is recognized, particularly in relation to insolvency laws. For applicants domiciled outside the EEA the legal opinion must confirm that transfer orders entered by the applicant into the securities settlement system of VPO NOK are irrevocable and will be respected (in accordance with the VPO NOK Rules) in the event of the insolvency of the applicant.
Prior to connecting to VPS
- Conducting technical tests in VPS system “DEMO”, which is the test system for VPS participants.
- Participate in training sessions regarding the VPS systems.
In addition to the above mentioned information, VPS may require additional information from the applicant for granting participation.