The Oslo stock exchange announced in early March that it is aiming for a stock market listing, which it hopes will strengthen its position in the Scandinavian market and beyond. Chief executive Sven Andersen told Euro the move should give the exchange greater flexibility to deal with competition and forge alliances in future.

Sources close to the exchange say Oslo needs a stock market listing – which would effectively amount to a whole or partial privatisation – to ensure its survival in the future in the face of competition from electronic communications networks and alternative trading systems. A listing would make the exchange focus more on driving down the costs of trading and the price of its services, as well as providing funding for new ventures, says the source. At present it is a state-run institution and needs parliamentary approval to change its status, which is expected by the end of the spring session on June 16.

The Oslo stock exchange:
planning a flotation

The exchange is already attempting to position itself at the heart of the region’s trading network, and is expected to complete negotiations for entry into the Norex alliance with the Stockholm and Copenhagen stock exchanges at the end of March. Andersen says a harmonised trading system for the alliance will be fully functional in mid-2001, when Oslo will have converted to the platform already used by its new partners.

He is also confident that a combination of all the countries in the Scandinavian and Baltic regions could make a significant impact on the global market. The Baltic exchanges of Estonia, Latvia and Lithuania are already negotiating a connection to Norex. Although the Helsinki exchange is currently part of the European Exchange Alliance led by London and Frankfurt, Andersen stresses that the Norex door is still open should Helsinki have a change of heart.

“We foresee a need to expand this Nordic market. I think we have a lot to offer all countries,” says Andersen, who believes that there are more alliances to be made, but is reluctant to elaborate. “Norex may also enter into an alliance with another bigger entity. We are open to alliances with other systems – I don’t think Norex is an end.”