Foreign Exchange Trading

All cross-border transactions must be reported to the Norwegian Tax Administration

The Currency Register Act requires all banks and financial institutions to report all international transactions to the Norwegian Tax Administration. The reporting requirement applies to both corporate customers and retail customers.

Payments of amounts exceeding NOK 100 000 (in foreign currency or Norwegian kroner), require additional information about what the amount is for. This additional information is reported by supplementing the transaction with a payment type code, see link below. In the online bank, the payment type codes are made available via a separate drop-down menu. In addition to the payment type code, you must briefly describe what the transfer is for.

Customers who send documents to the bank must ensure that these foreign transfers are in accordance with rules for reporting to the Norwegian Tax Administration.

This applies to the following transactions:

• All transfers to or from a foreign country
• Card usage in a foreign country (individual transactions exceeding NOK 25 000 are reported separately)
• Buying and selling of foreign bank notes that exceed NOK 5 000
• Foreign issued cards used in Norway will also be reported to the currency register according to the same guidelines.

More information about the Act and payment type codes can be found on the following websites:

The Currency Register Act

The Act’s regulations

Payment type codes

All interest rate, currency and commodity derivatives are traded using a request for quote (RFQ). When DNB trades such derivatives with professional and non-professional customers, DNB will act as the principal. This means that DNB is the customer’s counterparty.

DNB will quote a price, consisting of a market-based bid and/or ask price plus a margin. In our price, the included margin covers the bank’s costs associated with market risk, counterparty risk, financing, capital requirements, operational costs, taxes and fees, marketplace turnover, clearing, settlement costs and the bank’s profit.

The margin will vary from customer to customer and from instrument to instrument, depending on the transaction’s size and term, the counterparty risk the customer represents, the liquidity in the relevant market, and historical and expected turnover, including trading behaviours, for each individual customer.

Bonds and commercial papers are traded using a request for quote (RFQ). When DNB trades such products with professional and non-professional customers, DNB will act as the principal, meaning that DNB is the customer’s counterparty.

DNB will quote a price, consisting of a market-based bid and/or ask price plus a margin.

In our price, the included margin covers the bank’s costs associated with market risk, counterparty risk, financing, capital requirements, operational costs, taxes and fees, marketplace turnover, clearing, settlement costs and the bank’s profit.

The margin will vary from customer to customer and from instrument to instrument, depending on the transaction’s size and term, the counterparty risk the customer represents, the liquidity in the relevant market, and historical and expected turnover, including trading behaviours, for each individual customer.

Margin on an Investment Grade bond loan will typically be 0.005–0.05 per cent per year. For example, 0.01 per cent margin per year for a bond loan with 3 years’ duration gives a cost of round 0.03 per cent of the nominal amount.

For High Yield bonds, the margin will typically be between 0.125–0.25 per cent of the nominal amount.

The margin may deviate from these margin ranges, for example when trading in bonds that are rarely traded, in volatile markets, and/or where there are other events that can influence the price of bond loans — these can be market, sector and/or company specific.

To Bond product page