Denmark's VP Securities Services and Icelandic Securities Depository are finalising an agreement to establish a link between the two central securities depositories (CSD).
The hookup between the two countries is intended to minimise trade costs and make clearing and settlement more efficient for both Danish and Icelandic investors.
Danish investors can trade Icelandic securities according to Danish law, which in turn, makes it easier for Icelandic investors to trade in Danish securities, note the exchanges.
Under the agreement, Icelandic securities will be book-entered in the VP system, enabling investors from each country to trade on equal terms.
VP has already established a similar link with the Swedish CSD, VPC. The Danish CSD also has in place a fully automatic link to Euroclear.