The central securities system for settlement in Norwegian kroner (VPO NOK) is based on Euronext Securities Oslo carrying out multilateral netting and clearing of the trades that are notified for settlement on the agreed settlement date
Based on the net transfers that apply to each seller and buyer, the Central Bank of Norway carries out the cash settlement and Euronext Securities Oslo carries out the securities settlement between the settlement participants. Settlement payments between the settlement participants (investment firms or settlement agents) and their investors take place outside of VPO.
Euronext Securities Oslo uses international standards and the main features of settlement of securities transactions carried out in the Norwegian securities market are as follows:
- Settlement is carried out through an investment firm or a settlement agent.
- The parties that participate in the central securities system for settlement in Norwegian kroner are investment firms, settlement agents and CCPs.
- In order to participate in the central securities system, settlement participants must provide a liquidity guarantee either by holding an account with the Norwegian central bank (Norges Bank) or by having access to an account with Norges Bank through an arrangement with a bank that operates such an account, known as a liquidity bank.
- Delivery versus payment (DvP) – NOK payment in central bank money.
- Multilateral netting.
- Extended balance checking for availability of cover across multiple accounts.