Clearing

Access for central counterparties to clear trades in equity instruments listed on Oslo Børs and Oslo Axess.

Central counterparties that wish to clear transactions in equity instruments listed on Oslo Børs and Oslo Axess must, as a minimum, satisfy the following criteria:

• The central counterparty must hold the necessary authorisations and approvals by the relevant authorities that are required for it to operate clearing activities in Norway.
• The central counterparty must satisfy the requirements of the relevant authorities in respect of risk management, as well as the requirements imposed at any time by the relevant supervisory authority.
• The central counterparty must provide documentary evidence of its access to the Norwegian securities settlement system. The type of access held must be sufficient to satisfy any instructions imposed by the relevant authorities, and must not represent any increase in risk for the stability of the Norwegian financial infra structure.
• The central counterparty must enter into the standard clearing membership agreement as stipulated by Oslo Børs.
• The central counterparty must enter into an agreement with the other central counterparties that clear equity instruments traded on Oslo Børs and Oslo Axess. It is a requirement that collaboration between central counterparties recognised by Oslo Børs, including the relevant contractual and regulatory framework, ensures the stability of the Norwegian financial infrastructure.
• When central counterparties that are recognised by Oslo Børs establish links between each other, they must provide documentary evidence to Oslo Børs that such links comply with Recommendation 11 of the Recommendations for Securities Settlement Systems and Recommendations for Central Counterparties in the European Union issued by CESR and the ECB and dated May 2009, and that the link is approved by the relevant supervisory authority (where this is required).
• The central counterparty must provide documentary evidence that it complies with the Recommendations for Securities Settlement Systems and Recommendations for Central Counterparties in the European Union issued by CESR and the ECB and dated May 2009.

Oslo Børs signed an agreement on 7 November 2006 that established a European standard for settlement of securities known as the European Code of Conduct for Clearing and Settlement (the “Code of Conduct”). Chapter IV of the Code of Conduct includes specific overall guidelines for access and interoperability between participants in the financial infrastructure, including central counterparties. On the basis of and in accordance with these general guidelines, more detailed guidelines and principles for access and interoperability between marketplaces, central counterparties and central securities depositories have been issued, namely the Access and Interoperability Guideline of 28 June 2007 (the “Access and Interoperability Guideline”). If a central counterparty wishes to offer clearing of trades in equity instruments carried out on Oslo Børs and Oslo Axess, and accordingly wishes to link up with counterparties already recognised by Oslo Børs (i.e. to establish interoperability), Oslo Børs will strive to carry out its evaluation of the central counterparty on the basis of the guidelines and principles laid down in the Access and Interoperability Guideline.

An extensive program of work is currently underway to establish a harmonised European regulatory framework for central counterparties (EMIR). EMIR includes proposals for the regulation of the cross-border activities of clearing houses within the EU/EEA and for agreements on interoperability, including a requirement for agreements on interoperability to be approved by the supervisory authorities. Oslo Børs wishes to stress that the criteria set out above are subject to change at any time as a result of this work . It should also be noted that the above criteria represent minimum requirements, and that Oslo Børs reserves the right to impose further conditions.

Oslo Clearing is currently the only central counterparty recognised and appointed by Oslo Børs. Oslo Clearing has operated as a central counterparty for equity instruments traded on Oslo Børs and Oslo Axess since June 2010. Further information on Oslo Clearing ASA can be found on the company’s website.