Oslo Børs VPS Reduces The Additional Fee For Same Day Settlement (Registration And Settlement On The Same Day) In Connection With The Transition To T + 2

As of 6 October 2014 the settlement period in Norway will be shortened by one day, from T +3 to T +2.

VPS encourages the market to enter/confirm the settlement transactions as early as possible. Early input and confirmation provides predictability in the settlement for all participants, and consequently all participants will be able to predict their liquidity requirements as early as possible for the next settlement. As a result, VPS currently charges an additional fee of NOK 12.50 for each transaction that is entered on the settlement date or later, but traded/agreed at an earlier date.

The introduction of T +2 will reduce the available time for registration of transactions by 24 hours, which will require accommodation for many participants and their customers. VPS acknowledges that in a transition phase, some customers will face challenges confirming their transactions on time and within the cut-off time at 20:00 hours on S-1. VPS will contribute financially to the transition by reducing the fee for late input of transactions in Q4/2014 from NOK 12.50 to NOK 4.00. VPS trusts that the temporary fee reduction of 68% as well as access to the settlement ratio in VPS Settlement Benchmark, will ease the participants' accommodation to a future with T + 2. The fee will be raised back to NOK 12.50 effective 1 January 2015.

VPS supports the introduction of T + 2. T+2 will contribute to lower settlement risk and the investors will have a shorter time in which they are at risk of their counterparty. For the market to profit from this, it is important that all customers as early as possible confirm their transactions and that the transactions are entered into the VPS system as soon as possible in order to get a predictable and efficient settlement with minimum risk.

The change in the settlement period is based on the requirements set out in the new EU regulation on settlement ("Regulation on improving securities settlement in the EU and on central securities depositories (CSDs) and amending Directive 98/26 / EC) (CSDR").