Finlands CSD, Euroclear Finland, has agreed to join TARGET2-Securities (T2S).
Euroclear Finland will outsource its settlement transaction processing to T2S, while continuing to directly operate its clients accounts and provide the full range of custody and related services.
The migration date, required changes to market practices and fees for connecting to and using T2S will be determined through market consultations.
Yannic Weber, CEO of Euroclear Finland, commented:Following extensive consultation with market stakeholders and regulators, our decision to sign up to T2S reflects the choice of our clients and the wider Finnish market. There is clear interest in Finlands capital markets to be part of the greater push for European economic progress and harmonisation.
Hanna Vainio, deputy CEO of Euroclear Finland said: T2S can serve as a catalyst for greater harmonization and standardization of post-trade processes. Outsourcing our settlement activity to T2S will require technical changes and adaptations, both here at Euroclear Finland and also by our participants, issuer clients and other market stakeholders. We see these changes as an opportunity to improve our current services and offer our clients access to more foreign investment possibilities.
The latest move follows the signing of the framework agreement by the Euroclears three Eurozone CSDs Euroclear Belgium, Euroclear France and Euroclear Nederland last week and the signing of the agreement by Swiss CSD SIX this week. These CSDs will also outsource their transaction processing to T2S.
Euroclear Sweden and Euroclear UK & Ireland have decided not to join T2S at this stage.
(JDC)