As part of the modernisation of its IT platform, VPS will develop new end-user solutions for investors and issuers and will also implement new market standards for corporate actions and settlement. This investment in new infrastructure is being made in order to ensure VPS’s future competitiveness and to comply with new EU regulations.
“Linking investors and issuers closer together will be essential to ensuring VPS continues to be an attractive provider of services to investors and issuers. This also corresponds with the trend we see in the European market in general. New European regulation is bringing increasing competition. This new project will mean we will be well-positioned to meet this competition”, comments John-Arne Haugerud, CEO of VPS.
In addition to strengthening VPS’s own competitiveness, the new solution will enable VPS to support the strategy for strong sectors followed by Oslo Børs VPS and the market, in part by meeting the expected increasing demand from international customers for greater currency functionality. The modernised system will also be adapted for connection to T2S, the European Central Bank’s initiative to foster integration and greater efficiency in securities settlement in Europe.
The project will start during the course of the fourth quarter of 2014, and is expected to last until the second quarter of 2017. It will involve spending in the region of NOK 120 million on external suppliers. Of this, just below NOK 20 million will be recognised as direct costs, with the remainder recognised as capitalised expenditure. VPS expects the project to bring yearly cost savings in the region of NOK 20 million (with full year effect starting in 2018).
For more information:
John-Arne Haugerud, CEO of VPS. Tel: +47 901 15 337
About VPS:
VPS is the only central securities depository in Norway, and provides an efficient infrastructure and services for the settlement of transactions in securities and the registration of ownership rights over securities. The company offers registration for all the major types of financial instruments that are traded in Norway – shares, bonds, equity certificates, short-term bonds and funds. VPS offers a range of products that is extensive even by international comparison. VPS delivers its services to investors and issuers through a network of investment banks, brokers, banks and fund management companies. These entities, acting as account operators, are responsible for customer relationships with investors and issuers, and manage day-to-day access to VPS services.
About Percival:
Percival CSD Partners is an Estonian company that develops and delivers software solutions for central securities depositories (DEPEND) and other entities that operate shareholder registers (REGARD).
The company was founded in 1986, and since that time has developed and renewed its solutions continuously. Percival’s first complete central securities depository system was implemented in 1997.
Today, Percival can count 9 users of DEPEND, of which 2 are in Europe. Adaptation work in preparation for T2S, the new European settlement system, is ongoing at the company, with the first of its customers due to be connected to the system as early as 2015.