Sweden Stays on the Path Towards T2S – Step By Step
On June 18, The Swedish Central Bank announced a decision that impacts the future of post trade. The Riksbank has decided to start negotiations with the European Central Bank to join the payment platform called T2. This will be done prior to the affiliation to the European T2S platform for securities settlements in the Swedish krona. Although the Bank’s decision implied a postponement of joining T2S, Euroclear Sweden’s harmonisation focus remains very strong, and we are not slowing down the process towards joining T2S.
A careful step by step transition lowers the risk that comes with switching platforms and managing changes both within the securities and payment areas.
“We will continue solving each issue in a controlled fashion, on a realistic timetable. We are staying on the path towards T2S,” says Sandra Holmqvist, Chief of Business Financial Institutions at Euroclear Sweden.
Euroclear Sweden is already connected to T2 for the cash leg of Euro settlement through Bank of Finland, and the technical solution will be copied as far as possible to avoid sunk costs. The Riksbank is expected to begin the implementation project in mid-2025.
“Transitioning the Swedish market towards the target vision takes time and requires changes in multiple areas with practical, technical and sometimes contractual changes. The Riksbank’s decision to first outsource its payments platform to T2 will allow the securities business to proceed in a more controlled manner,” says Sandra Holmqvist.
