Oslo Børs

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Oslo Børs ASA
OsloBors.jpg
Founded 1819
Headquarters Oslo, Norway
Key People Håvard S. Abrahamsen, President & CEO
Products Oslo Børs Benchmark Index (OSEBX)
Website http://www.oslobors.no/ob_eng/

Oslo Børs is the only regulated marketplace for securities trading in Norway and trades listed equities, derivatives and fixed income instruments. It offers listing and trading in stocks, equity certificates, ETPs, interest products and derivative products on five different marketplaces; Oslo Børs, Oslo Axess, Merkur Market, Nordic ABM and Oslo Connect.

The exchange was acquired by Euronext in 2019 which includes subsidiaries Oslo Market Solutions AS, Evolution Software Sweden AB VPS and Fish Pool ASA, the marketplace for salmon contracts established in 2005.

Since 2009, Oslo Børs has run on technology supplied by its partner, the London Stock Exchange Group, for its equity, derivatives and fixed income markets.[1]

Oslo Børs was ranked 39th by derivatives volume in 2018 with volumes of 9.4 million contracts, down 12.6 percent from 10.7 million contracts a year earlier, according to the annual volume survey published by the Futures Industry Association (FIA).[2]

Background

The Oslo Børs was founded in 1819 by merchant Nicolay Andresen and by 1881 listed a total of 16 bonds and 23 shares.[3] An Oslo market index was introduced in 1946, based on 1939 prices, and in 1988 open outcry trading was replaced by an electronic trading system followed two years later by the introduction of derivatives trading. In 1999 the Oslo Børs joined the Copenhagen Stock Exchange and the Stockholm Stock Exchange (now part of the OMX Nordic Exchange group) to form an joint Nordic marketplace called the NOREX Alliance and in 2002 switched to the same trading platform as its NOREX partners.

In December of 2012 SIX Group agreed to acquire 100 percent of Oslo Clearing from Oslo Børs for NOK 180 million (approximately $32 million).[4] The deal was completed in 2014.[5][6]

On January 14, 2019, Euronext launched a $729 million bid for Oslo Børs. Euronext already owned 5.1 percent of the bourse. Oslo Børs then invited rival bids following Euronext’s offer, noting the auction of shares was arranged by Oslo Børs’ majority shareholders without the knowledge of the exchange. Nasdaq subsequently made a rival bid for Oslo Bors that exceeded Euronext’s initial bid. By April 2019. both offers were equal at $791 million, or 158 Norwegian crowns per share. Norway's Ministry of Finance approved Euronext's bid to buy up to 100 percent of Oslo Børs on May 13, 2019 for $779 million, beating out Nasdaq's offer. The deal was unanimously approved by Euronext's shareholders on May 16, 2019, and is expected to close by the end of June 2019. Nasdaq formally withdrew its bid on May 27, 2019.[7] [8][9][10][11][12][13][14]

Products

In September of 2015 Oslo Børs expanded its range of exchange-traded products to list 14 new bull and bear products from the market maker Nordea to provide investors with exposure to the OBX Index and other foreign indices. The newly listed securities are Exchange Traded Notes. Bull and bear products enable investors to position themselves for the market to either rise or fall.[15]

Oslo Børs announced in April 2017 a move to take over the Norwegian Securities Dealers Assocation's NOTC information system for unlisted shares. Oslo Børs took a 50 percent stake in the system in 2006 and acquired the remainder in April 2017. The system had more than 470 companies featured since its launch.[16]

Dark pool

On April 20, 2015, Oslo Børs re-launched North Sea, its dark pool functionality that includes DMA, a smart order router and algorithm support. North Sea will allow Oslo Børs members to execute larger orders, at mid-price, in a dark pool, in an exchange regulated environment.

Key People

Håvard S. Abrahamsen, President & CEO, President & CEO

Thomas Borchgrevink, EVP Surveillance and Operations

Kjetil Nysaether, Executive Vice President, Information Technology

Oivind Amundsen EVP Primary Market and Legal Affairs

Catharina Hellerud, Chair of the Board

Annual Volumes

Year Total Annual Volume Percent Change
2018 9,432,118 (-)12.6%
2017 10,795,102 (-)5.6%
2016 11,440,304 (-)16.6%
2015 13,718,702 (-)14.5%
2014 16,966,331 45.1
2013 11,693,959 8.0%
2012 10,826,940 (-)20.3%
2011 ~13,600,000 (est) 0.2%
2010 13,560,340 162.6%
2009 5,003,983 --

Trading System

Oslo Børs began using the TradElect trading system in April 2010, completing a strategic partnership between Norway's exchange and the London Stock Exchange Group (LSEG) begun in early 2009.[17] Oslo Børs adopted LSEG's SOLA trading system for derivatives in December 2009 and with its adoption of TradElect and LSEG's market-data platform, Infolect, has completed its transition to LSEG-developed trading technology.

In March 2014, Oslo Børs upgraded Oslo Connect, its OTC derivatives MTF trading and price discovery system, to the latest version of Edge, which is provided by Baymarkets AB, a specialist OTC market systems developer. Edge is the trading and registration platform used by exchanges, brokerage firms and banks in multiple markets throughout the world.[18]

References

  1. Oslo Børs extends technology partnership with London Stock Exchange Group. Oslo Børs.
  2. 2018 Annual Volume Survey. Futures Industry.org.
  3. The history of Oslo Børs. Oslo Børs.
  4. SIX purchases Oslo Clearing ASA. SIX Group.
  5. Closing of Agreement to Sell Oslo Clearing to SIX Group. Oslo Bors.
  6. Press Release. Bobs Guide.
  7. Euronext launches $729 million bid for Oslo bourse. Reuters.
  8. Euronext ups offer for Oslo Bors in bid to fend off Nasdaq. The Financial Times.
  9. Euronext Secures Majority Backing for Oslo Bors Bid. Reuters.
  10. Nasdaq makes move to acquire Oslo Bors by outbidding Euronext. The Trade News.
  11. Nasdaq, Euronext deemed fit and proper owners of Oslo Bors. Reuters.
  12. Norway clears way for Euronext to secure Oslo Bors in Nasdaq battle. Reuters.
  13. Euronext closes in on Olso Børs acquisition. The Trade.
  14. Nasdaq Withdraws Offer to Acquire Shares of Oslo Børs VPS. Press Release.
  15. Oslo Børs: Nordea expanding with new exchange traded products. MondoVisione.|
  16. Oslo Børs taking over NOTC. Oslo Bors.|
  17. Oslo Børs moves to TradElect for equities and fixed income. Finextra.com.
  18. Oslo Børs ASA implements next generation OTC derivatives platform from Baymarkets. Oslo Børs.