Plan for harmonising the Swedish securities market’s post-trade processes
News The Swedish securities market’s processes in post trade are to be harmonised with European standards. This means that the differences between Swedish and European processes will be reduced. A new cooperation forum, the Coordination Forum for Swedish Post-trade Harmonisation, has therefore drawn up a plan for the changes. Harmonisation entails increased efficiency on the Swedish securities market and simplifies cross-border activity.
The Riksbank invited relevant market actors to a round-table meeting in October 2019, to discuss the future of securities settlement in Sweden. They agreed that a harmonisation to European standards is necessary for the Swedish market to remain attractive and efficient. One reason why Swedish post-trade processes differ from European ones is that the Swedish market elected in the 2010s to remain outside the European Central Bank’s platform, TARGET2-Securities (T2S). T2S is a platform for securities settlement in central bank money that was launched in 2015. The Riksbank established the Coordination Forum for Swedish Post-trade Harmonisation to draw up a plan for harmonisation to European standards. Participants and interested parties in the Swedish securities market have taken part in this work.
During 2020, the forum drew up a plan for harmonising the Swedish securities market’s post-trade processes. The plan is presented in this report. The report illustrates which areas need to be harmonised and includes a general time line for the various harmonisation activities and a description of which actors are responsible for managing different parts of the harmonisation work. The report also contains a suggestion for how follow-up of the harmonisation work should be designed. Now that the plan has been produced, the Coordination Forum has completed its task and is therefore terminated. The harmonisation plan will enable the Swedish market to use T2S as a settlement platform for securities, but this is not a necessary consequence.
The report is primarily aimed at industry professionals, is of a technical nature and written in English. A summary of the report is available in Swedish.
The participants in the Coordination Forum for Swedish Post-trade Harmonisation are:
- Danske Bank
- Euroclear Sweden
- The Swedish Securities Markets Association
- Market Implementation Group for Corporate Actions Standards
- Nasdaq Clearing
- Nasdaq Exchange
- The Riksbank
- The Swedish National Debt Office
The Swedish Financial Supervisory Authority and the Swedish Ministry of Finance have taken part as observers.