New equity trading system of Oslo stock exchange has improved trading capacity in the stock exchange. The new system aims at achieving significant market liquidity by the introduction of an order-driven trading venue. The Oslo Stock Exchange introduced some fresh norms and procedures pertaining to trading activities.
In addition to the new trading norms and procedures, the new equity trading system of Oslo stock exchange was introduced. The main objective of these new introductions was to construct a market place, which was order-driven, one that focuses on market liquidity. Improved market liquidity means greater trading volumes, better prices and a sense of fairness in the trading activities.
Studies reveal that in last couple of years, operations and activities of the OSE or Oslo Stock Exchange have witnessed expansion. It was found that the turnover increased to NOK 291 billion from NOK 60 billion.
The company listings have also significantly risen to 235 companies from 146 companies (as per statistics of 1998).
Reason for the introduction of new equity trading system of Oslo stock exchange:
The new equity trading system was set up to enhance trading capacity. Another reason was also to provide the brokers with an efficient tool for improving trade. The new equity trading system was introduced, which replaced the Tandem platform for trading. The main aim of the new platform was to “limit in-house development” and develop a cost efficient remedy in trading.
Role of the new equity trading system of Oslo Stock Exchange:
The new equity trading system has helped in strengthening the “technological platform” pertaining to securities in the country. The new system has UNIX as the platform. The new trading platform allows brokers to host their trading activities on the World Wide Web. This new set up permits the trading of various other financial instruments too. It has also improved competitiveness of the Oslo Stock Exchange or OSE.