OMX says a change in the data processing rules of the Estonian CSD has taken 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 (Society for Worldwide Interbank Financial Telecommunication) message standard for performing operations that are related to the EVK-APK link.
The OMX-owned Tallinn Stock Exchange, which owns the Estonian CSD, says the EVK-APK link is a means for performing cross-border transactions and operations between the Estonian and Finnish depositories.
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, which means that Finnish investors can safely keep and administer Estonian securities in their accounts.
As further steps, the Estonian CSD and the Tallinn Stock Exchange plan to reach an agreement also for the safekeeping and administration 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.
Messages are exchanged between EVK and APK by means of SWIFT.