Interoperability means that customers have the possibility to use only one CCP in all the markets where they trade Oslo Børs registered securities. This allows for increased efficiency and reduced costs for the customers.
Interoperability has turned out to work well in the Norwegian market. LCH’s customers are trading a wide range of ISINs (170 ISINs in December) and there has been a high turnover in the major shares. Several customers, who previously had their trades cleared by OC, have moved to LCH. LCH has so far received in excess of 30% of all CCP trades in the market and they are continuously attracting new customers.
The foreign customers have received a better offer after interoperability was introduced. The market has probably not increased in itself, and we have not yet seen signs of how good it has been for the market on an overall basis, but it has certainly been cost efficient for LCH’s customers. For the Norwegian and Nordic customers who still have their trades cleared by OC, it has been less important. LCH offers degressive rates, which means that the more the customer trades, the lower the price becomes. This increases competition in the market.
Oslo Børs has gained new members in the aftermath of the introduction of interoperability. Interoperability may have helped to attract new customers to the market and thus contributed to a somewhat increased turnover on the stock exchange. VPS has also seen the effect of a new CCP in the market. We have been given an increased number of settlement transactions as a consequence of the transactions taking place between OC and LCH.
To summarize, Anne Ekeren Bjone, head of VPS Settlement and Clearing, says that the introduction of interoperability and an additional CCP in the market has been good for both VPS and Oslo Børs. It has also provided better options and better services for the customers.