Linked derivatives order book partnership ends in June 2019

Oslo Børs and London Stock Exchange Derivatives Markets to cease linked derivatives order book partnership.

From June 2019 Oslo Børs will exit the linked order book partnership with the London Stock Exchange Derivatives Markets (LSEDM). Oslo Børs will continue to operate the market, using the same trading system delivered by London Stock Exchange.

Oslo Børs members will be able to continue trading derivatives with no changes to their trading or clearing setup. LSEDM members will need to sign a membership agreement with Oslo Børs, and a clearing agreement with SIX x-clear to continue trading Oslo Børs derivatives.

On the trading side there will only be minor connectivity changes for new Oslo Børs members. On the clearing side, to ease the migration of international clearing members, SIX x-clear is committed to launching a new FIXML-based API in Q2 2019.

Lower clearing margin costs
Since the introduction of EMIR, the current model of two interoperable clearing houses has required an additional margin to balance the risk between the two clearing houses. This additional cost will now cease and members will see lowered clearing margin costs as a direct result.  

The Oslo Børs - LSEDM order book today holds a 95% market share in exchange-traded Norwegian equity derivatives, with an average of 25% tighter spreads than competing markets. With the majority of the market share, and 6 out of 7 market makers already connected through Oslo Børs, we are confident that Oslo Børs will remain the venue of choice for Norwegian Equity Derivatives.

About the LSEDM partnership
Oslo Børs has since 2009 operated a linked order book partnership with London Stock Exchange Derivatives Markets (LSEDM) for Norwegian Equity Derivatives. Members of both exchanges has been able to access Oslo Børs’ instruments through a common order book, with clearing through SIX x-clear for Oslo Børs members, and LCH for LSEDM members. From June 2019 LSEDM and LCH will exit the partnership and Oslo Børs will continue to operate the market, using the same trading system delivered by London Stock Exchange, and clearing though SIX x-clear. LSEDM members will have full access to trade Oslo Børs derivatives in the transition period, which will last until close of business on 21 June 2019. LSEDM and LCH are committed to working with Oslo Børs and SIX x-clear to ensure an efficient member migration during this period.

For more information, please contact:

Oslo Børs:
Anders Holen
Head of Trading – Derivatives, Oslo Børs
anders.holen@oslobors.no
+47 22341762 

Jesper von Zweigbergk
Head of Derivatives, Oslo Børs
jesper.vonzweigbergk@oslobors.no
+47 22341950

SIX x-clear
Stian Samuelsen
Norwegian Country Head of SIX x-clear
stian.samuelsen@six-group.com
+47 23179604

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Geir Harald Aase