As of this week, a change in the data processing rules of the Estonian CSD takes effect, which allows for the transfer of securities between the Estonian (EVK) and Finnish (APK) depositories.
The Estonian CSD also introduced into use the SWIFT message standard for performing operations that are related to the EVK-APK link.
On the basis of the agreement entered into between EVK and APK, the securities registered in EVK can be transferred to APK and vice versa. Initially, the agreement only covers the shares listed in the Main and I-Lists of the Tallinn Stock Exchange.
As further steps, the Estonian CSD and the Tallinn Stock Exchange plan to reach an agreement also for the registration of Finnish securities in the accounts of the Estonian CSD. Later on, similar opportunities will be introduced for Latvian and Lithuanian securities.
The entered agreement also allows for the international primary distribution of securities in Finland and Estonia, and informing the other party of the link about the corporative events in the home depository.’
“Although the link offers some transferability of Estonian securities free of payment into the Finnish market, it is not replacing institutional investors’ needs for sub-custodians on the ground presence in Tallinn. In order to further boost retail activity between markets, it is a helpful step,” said an SEB spokesperson.