VPS’s objective is to be a contributor to the value chain that we are a part of so that it is perceived very efficient and safe for investors, issuers, registrars and settlement members. This has always been the target since the day banks, investment firms and authorities 30 years ago agreed to establish Verdipapirsentralen.
The securities market has changed a lot during these 30 years, and will also in the future undergo major changes driven by either the market itself, European initiatives like the T2S or new regulations that will influence most of the players in the value chain including issuers, intermediaries and investors.
Our business is still mainly regulated by the Norwegian authorities, although many of the services technically are adapted to international standards and recommendations. This will change when the EU regulation for CSDs is included in Norwegian law. This regulation is in some respects very detailed and will require changes to both Norwegian market practice and to VPS’s systems and routines. We must, among other things, apply for a new license to operate as a CSD based on the European regulation.
In June 2015 the first countries will go live on the European Central Bank settlement platform, T2S. Back in 2011 VPS carried out a hearing in the Norwegian market to establish whether Norway should connect to T2S in an early phase. The hearing concluded that we should postpone the decision until a later date. VPS has taken the initiative to restart these evaluations during the first half of 2015, and to resume the work in the Norwegian NUG (National User Group).
To prepare VPS for the future, we have started a renewal program that will comprise IT systems, organisation, qualifications, market practice and a new license. 30 years after our establishment, we are thus starting to develop the next generation VPS. The renewal program has therefore been given the name VPS 2.0.
Despite the fact that we have to deal with a market that is constantly changing and becoming more and more international, we will not forget that we are primarily here to provide reliable services and good customer service. In the next few years, however, many resources will focus on our renewal program. Consequently, the development of new and existing services will be reduced until we enter into an operational phase of VPS 2.0.
We hope that this newsletter will provide useful information on what is happening in the market, in the daily business here at VPS and with respect to the renewal program described above. We would like to share our news with you in the future, and we aim at sending newsletters on a regular basis.
I would like to take this opportunity to wish you a happy new year!
Sincerely yours,
John-Arne Haugerud
Chief Executive Officer