The Oslo stock exchange is to spend more than £5m to plug into the London Stock Exchange's core trading platform, in a move that will allow it tobenefit from the platform's scalability and flexibility.
Both firms signed a letter of intent to form a strategic partnership that will allow Oslo Bors to use the Tradelect core trading platform.Tradelect is a complex piece of in-house middleware developed as part of a £40m, four-year technology programme completed in June 2007.
Tradelect, which already supports the Johannesburg stock exchange in South Africa, will replace the system currently used by Oslo Bors.
Tradelect has also take over trading of the Milan-based exchange Borsa Italiana which the London Stock Exchange acquired for £1.63bn on 1 October
It is estimated the project to migrate the Tradelect system will cost Oslo Bors about £5.2m. The cost of using Tradelect would be around the same as using the current trading systems if current volumes are taken into consideration.
Oslo Bors said in a statement: "Tradelect is a new and state-of-the-art trading system, and has already proved to be a stable and efficient platform for equities trading. The system offers flexibility not only for future changes in requirements and additional functionality, but also for increases in capacity and enhancements to response times (latency)."