In January 1998, the stock exchanges of Copenhagen and Stockholm set up the NOREX Alliance with a vision of a joint Nordic securities market. The key words are: joint trading system and common trading rules. Since June last, the Copenhagen Stock Exchange and the OM Stockholm Exchange have been using the same trading system for shares and their trading rules have been harmonised. Bonds will commence trading in the system next autumn.
Hans-Ole Jochumsen, President and CEO of the Copenhagen Stock Exchange and Vice Chairman of Nordic Exchanges A/S says: "Our strategy is proving more and more correct. The NOREX Alliance does not stop with the overall strategy, but puts it into practice. The NOREX Alliance signed a letter of intent with the Oslo Stock Exchange last November, and now that the Iceland Stock Exchange is going to join us, the alliance is growing nicely".
Stefán Halldórsson, President of the Iceland Stock Exchange, adds: "The Icelandic equity market has grown considerably in recent years, some of the reasons being privatisations and a large number of flotations. At present, 74 companies are listed on the exchange. It's our hope that the NOREX Alliance will meet two of our biggest challenges. It will be possible to replace our existing trading system with a joint NOREX system and open the Icelandic market to foreign investors and offer Icelandic investors easy access to overseas markets. For the time being, we'll be the smallest member of the alliance, but NOREX is organised in a way that allows us to have a say about future developments, so membership of the alliance is therefore a big and good step forward for the Iceland Stock Exchange".
The NOREX Alliance intends for each of the participating stock exchanges to gain new members and not least new joint members, i.e. the so-called cross members. The number of cross members has increased from four to 17 since June 1999.
A large number of members with access to the Nordic market help improve the liquidity and pricing in the market.
