VPS will work towards joining Target2-Securities (T2S) in the second phase of the project. That will put Norway's adoption of the centralised settlement platform in 2018-19. T2S is due to be launched in 2015 and the CSDs that accept the offer from ECB within June 2012 will migrate in 2015-2016.
"In collaboration with Norwegian market participants, other European central securities depositories and the ECB, VPS has participated in the program of work for T2S for more than two years. It has also carried out a hearing in the Norwegian market on the question of whether the CSD should enter into an agreement with the ECB to participate in T2S in the first phase,
"Based on an overall evaluation, and in agreement with the views of the parties that participate in securities settlement, VPS has decided to work towards becoming a participant in T2S in the second phase of the project," the CSD said in a statement.
Although being generally positive to standardisation efforts in Europe’s post trade landscape, some of Norway's market participants, such as SEB Bank and the Norwegian Securities Dealers Association, expressed concerns about technical as well as commercial barriers in connecting to T2S and had urged VPS to wait on the project.
"VPS will now work to identify the best future solutions for the Norwegian market. This will include deciding how the T2S platform will be used and when to start using it," said VPS.
