Oslo Bors to move to T+2 in 2014
Oslo Børs VPS has decided to introduce T+2 with effect from 6 October 2014. This means that securities will be settled on the investor's account in VPS two days after the transaction has taken place and consequently that the seller will receive payment after two days. Current market practice is that this process will take three days.
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EU are working on introducing new regulation of CSDs in Europe, which among other items include a requirement of having a settlement cycle of maximum two days for all trades performed on exchanges and MTFs. With few exceptions all European countries currently offer a settlement cycle of T+3. However, in most countries there are processes ongoing on introducing T+2 in order to be in compliance with the new EU-regulation (the CSD directive).
Both Nordic and international market participants has given Oslo Børs VPS feedback that they prefer a Nordic coordination of implementation of T+2. The Nordic securities dealers associations have recommended that T+2 should be introduced in all the Nordic countries on 6 October 2014. Oslo Børs VPS supports this recommendation and will for this reason prepare the transfer for the Norwegian market with effect from 6 October 2014.