Oslo Børs strives to ensure that its marketplaces are efficient and well run, and its commitment to continually improving the marketplaces takes into account developments in the securities market as well as the needs and preferences of its customers.
As previously announced, Oslo Børs will implement the new London Stock Exchange (LSE) trading system TradElect from February 2010, and the exchange wishes to harmonise the arrangements for trading in equity instruments as closely as possible with the market model that the London Stock Exchange uses for TradElect.
The proposed changes to the cash equities and fixed income market models were circulated for consultation to members of Oslo Børs, Oslo Axess and Oslo ABM in April. Based on the responses received, Oslo Børs has decided to make certain changes to the market model for equities, primary capital certificates, warrants and ETFs.
Trading in fixed income instruments will also migrate to TradElect from February 2010, but the trading arrangements for the fixed income market will be virtually unchanged from the current arrangements for trading using the Saxess system.
The following changes in the arrangements for trading in equities, primary capital certificates, exchange traded funds (ETFs) and warrants will be introduced:
- Post-trade anonymity will cease for the OBX segment. Post-trade anonymity was introduced in June 2008, but when trading moves onto TradElect in February 2010 all trading in shares, warrants and ETFs on Oslo Børs will have fully visible counterparty identity. The OBX segment normally comprises the 25 most widely traded companies listed on Oslo Børs.
- The minimum displayed amount for iceberg orders (orders with hidden volume) will differentiate between the OBX segment and other shares. The minimum displayed amount for OBX shares will be set at NOK 500,000. Other shares will have a minimum displayed amount of NOK 200,000.
- ’Lot size 1’ will become the standard lot size for all equities, and odd lot orders will disappear. This means that the lot size for trading through TradElect will be equivalent to 1 share.
The consultation also raised the question of trading hours. Oslo Børs
harmonised its trading hours with the majority of other European markets when
it extended its closing time to 17.30 in September 2008. In view of
competition from other exchanges in Europe, the Oslo Børs trading hours will
continue unchanged following the migration to
TradElect in February 2010.
Details of the new market models for equities and fixed income trading can be found here.
