The launch of Saxess represents a unique opportunity for the companies listed on Oslo Børs to attract greater interest through exposure to a broader public, and, perhaps even more importantly, it will give companies access to a significantly larger capital market reflecting increased focus by international investors. There is now nothing to prevent a London-based investor who uses NOREX to buy shares in Statoil, Nokia or Ericsson from also taking the opportunity to look at other Nordic shares. The Saxess trading system makes it possible to trade all Nordic shares through one and the same screen, representing unique functionality in comparison to the trading methods previously available.
The proportion of private individuals in Norway who invest their savings in shares is relatively modest by comparison to countries such as Sweden. Increased accessibility to all Nordic shares will encourage more Norwegians to become shareholders, and over time Norwegian private investors will become a more powerful investor group. Moreover the costs of trading will continue to fall as more and more investors trade in the same market.
NOREX offers private individuals and other investors access through a single trading system to more than 80% of the Nordic equity market and 90% of the Nordic bond market. This broad product range will make the experience of using the NOREX market quite unique relative to the trading opportunities that have been available so far. At the same time the broad range of securities available will attract new capital from foreign investors and thereby increase the level of activity in the market and contribute to more correct pricing.
The day-to-day practical benefits of the NOREX Alliance will be particularly marked for investment firms, which will now be able to offer their services with the fewest possible limitations. Investment firms will now be able to trade on the Nordic exchanges on the basis of a common trading system with rules and regulations of an international standard rather than having to master a number of different trading systems and sets of regulations.
NOREX is an alliance of Nordic exchanges comprising Stockholmsbörsen, the Copenhagen Stock Exchange, the Iceland Stock Exchange and Oslo Børs. the four alliance members co-operate to represent a single market, using the same trading system and largely similar rules and regulations. The annual volume of trading through NOREX will be in the order of NOK 4,000-5,000 billion, spread across more than 800 shares, and the total market capitalisation of companies listed on NOREX will be around NOK 5,000 billion.
