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Trading activity has increased strongly since investment firms first started to offer share trading over the internet in 1999. Buying and selling shares has gradually been seen as something that is available to almost everyone, and internet share trading has certainly lowered the threshold for private individuals to participate directly in the stock market. Around one-third of all the investment firms linked to Oslo Børs now offer internet share trading.
In 1998 average daily trading volume was around 3,500 trades, increasing to 5,300 in 1999. Trading volumes really started to take off in 2000, and from 2000 to 2003 average daily trading volumes were in the range 8,200 - 10,000, almost three times higher than before the introduction of internet share trading. The first few days of 2004 have seen around 17,000-20,000 trades per day. However internet share trading is certainly not the only reason for these increases.
Foreign investment firms have flooded into the Norwegian market since Oslo Børs joined the NOREX alliance of Nordic stock exchanges. Now one in every three of the investment firms that make up the membership of Oslo Børs is what is known as a remote member, i.e. an investment firm that operates from offices outside Norway.
Recent years have seen a sharp increase not only in the number of trades but also in the total value of trading. Average daily turnover ten years ago was just NOK 500 million, while this amount now changes hands in just the first few minutes following the opening auction at 10.00 a.m. In 2003 average daily turnover reached NOK 2.2 billion.
However a comparison looking back 25-30 years shows just what enormous growth the Norwegian securities market has achieved. In the 1970s turnover was no more than NOK 700 million for a whole year, while this turnover is now seen in the first half-hour of the trading day.
