Oslo Børs to launch a new regulated marketplace

Oslo Børs is establishing Oslo Connect, a new regulated marketplace for trading in non-standardised derivatives (OTC derivatives). The launch of this marketplace will give investors a new and unique venue for efficient and secure trading in derivatives that are not stock exchange listed.

Oslo Connect will be structured as a Multilateral Trading Facility (MTF) and will be based on a set of marketplace rules that will ensure higher standards of consistency and openness than an unregulated marketplace can offer. Oslo Børs was granted authorisation by the Financial Supervisory Authority of Norway (Kredittilsynet) to establish an MTF earlier this week. The new marketplace will open for business later this autumn, but no date has as yet been set for the launch.

Oslo Clearing already offers flexible settlement services and takes over counterparty risk on behalf of the participants for both the standardised and OTC derivatives markets. By launching Oslo Connect, Oslo Børs VPS Group will offer investors access to the entire value chain, with a trading venue operated by Oslo Børs and Oslo Clearing taking over counterparty risk.

“Oslo Børs recognized OTC derivatives as an attractive market in which to operate quite some time ago. We believe that it should be possible to trade in a market as large as this on a regulated marketplace. In addition, the financial crisis has made market participants much more aware of counterparty risk, and we can meet their needs with the services of Oslo Clearing”, comments Bente A. Landsnes, President of Oslo Børs and Group Chief Executive Officer of Oslo Børs VPS.

Read more on Oslobors.no

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