Oslo Clearing ASA Self Assessment ESCB-CESR Recommendation

For the settlement process between Oslo Clearing and its clearing members, Oslo
Clearing relies on settlement systems VPO for the equity and derivatives segment and
Oslo C NOK for the derivatives segment, that involve the settlement system and
funds available at Norges Bank. Oslo Clearing maintains settlement accounts with
Norges Bank. Settlement of financial instruments, including equity trades and
physical deliveries in derivative contracts, are performed through VPO, while daily
market settlements in cash for the derivatives segment is performed through Oslo C
NOK, which makes use of NBO.
The settlement process to the next tier, i.e. the end client level, relies on commercial
bank arrangements.
Oslo Clearing maintains liquidity facilities with commercial banks, however, Oslo
Clearing has also access to central bank credit to perform its obligations.
2. Do the CCP’s legal agreements with its settlement agent(s) provide that funds
transfers to its accounts are final when effected? Do the CCP’s regulatory, contractual
and legal frameworks clearly define the moment when the CCP’s and clearing
participants’ reciprocal payment obligations are extinguished? Do the laws of the
relevant jurisdictions support these provisions? Do the payment systems for the
currencies used support intraday finality? Does the CCP routinely confirm that funds
transfers have been effected as and when required by those agreements? Is the
payment system used by a CCP safe and sound and does it observe the CPSIPS?
For the equity segment, Oslo Clearing participates directly in VPO which is authorised
pursuant to Section 4-1 of the Act on payment systems and implements in Norwegian
law the provisions of Directive 98/26/EC on Settlement Finality in Payment and
Securities Settlement Systems. Oslo Clearing does not make use of settlement
agents.
The reciprocal payments obligations between Oslo Clearing and its clearing members
are considered extinguished when settled against the VPO LOM of the settlement
bank appointed by the clearing member for settlements within VPO.
For the derivatives segment, Oslo Clearing its settlement system Oslo C NOK to
perform cash settlement of the daily market settlement (futures), premium and fees.
Oslo C NOK relies on the Norwegian Central Bank settlement system for cash
settlement (NBO) Oslo C NOK has approval from Finanstilsynet in accordance with
section 4, of the act on payment systems, which implements the provisions of
Directive 98/26/EC on Settlement Finality in Payment and Securities Settlement
Systems. Oslo C NOK is supervised by Finanstilsynet.
Oslo Clearing has settlement systems for the daily market settlement (futures),
premium and fees in other currencies (SEK, DKK, EUR). These systems are currently
inactive.
The commercial banks support intraday finality, as there is a simultaneous cash
settlement for all deposit accounts in the settlement system once a day, with the
effects described above.
Oslo Clearing routinely confirms that funds transfers through the main settlement
systems, VPO and Oslo C NOK are effected.
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