Scandinavia Spearheads Exchange-Traded Derivatives Rush As Oslo Børs Ups Its Game

Oslo Børs implements Baymarkets Edge derivatives platform as exchanges embrace opportunities in current OTC markets

Whether the probe into a whole host of international financial institutions which accuses them of FX rate manipulation is partly responsible for driving the recent developments in exchange-based infrastructure within a predominantly OTC industry sector is hard to measure, however something of a pattern in this direction is most certainly emerging.

Today, Norwegian venue Oslo Børs (OSE: OSLO) has implemented the latest generation of an OTC derivatives platform from Baymarkets AB.

This constitutes an upgrade of Oslo Connect, which is Oslo Børs’ OTC derivatives multilateral trading and price discovery system, within which the latest version of Baymarkets AB’s Edge platform has been invoked.

Late last week, fellow Scandinavian exchange firm NASDAQ OMX announced that it was considering conducting FX transactions via an exchange, as in traditional stock and equities markets, which contributed to the discussion within the industry as to whether OTC derivatives can be transacted in a completely neutral manner with equal counterparties unless an exchange clears the order flow.

According to Oslo Børs, the upgraded Oslo Connect supports equity derivatives trading with a more modern GUI and future-proofed functionality enabling the MTF to introduce additional products to the supported product set. 

There appears to be business justification for attracting order flow from OTC derivatives markets, as Oslo Børs experienced a vast upturn in volumes during January this year, a month during which on average, 72,708 contracts were traded daily, as compared to a daily average of 39,249 in January 2013, representing the highest volume traded during any January since 2008.

Jesper von Zweigbergk, Head of Derivatives at Oslo Børs made a corporate statement regarding the implementation: “We are looking forward to continuing to provide our customers with a state-of-the-art marketplace both technically and functionally”.

Peter Fredriksson, the CEO of Baymarkets, further commented “We have enjoyed an excellent working relationship with the Oslo Børs over the last 5 years and are thrilled that they have upgraded to our latest OTC platform which enables Oslo Connect to offer new functionality and opportunities to its market participants.”

This particular Scandinavian venue’s wish to appeal to mainstream markets among some of the largest trading centers globally was amplified further by yesterday’s announcement it had gained agreements for interoperability between LCH.Clearnet and Oslo Clearing, which have been approved by the Norwegian Ministry of Finance and the Bank of England in order to clear equities and ETFs which will come into effect tomorrow.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

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