VP is ready for Swedish securities
VP SECURITIES has been approved for issuance, clearing and settlement in SEK and the Danish CSD is ready for clients with an interest in SEK cash flows. The service will be fully implemented in March 2017.
Today VP SECURITIES (VP) announce CSD services in Swedish Kronor, SEK. Riksbanken has granted VP with access to the Swedish central bank, hence, VP can provide CSD services in SEK. Clients are now able to benefit from VP’s unique segregated accounts in both SEK, DKK and EUR.
“There is a history of close collaboration between Denmark and Sweden. Therefore, it is obvious for VP to expand our services to the Swedish issuers and investors,” says Senior Product Manager Morten Skanning, VP SECURITIES.
VP is uniquely positioned to be the enabler of a Nordic integration into the European market. Last month VP connected to T2S, the pan-European settlement platform, and now VP is approved by the Swedish central bank to perform clearing and settlement in SEK.
“I see T2S as an enormous opportunity for Denmark and the other Nordic countries, since this platform will be an advantage for issuance and distribution of securities. There are great expectations of the harmonisation of transactions across national borders, and it's important that we can support our clients with efficient access to the Nordics as well as the European market," says Morten Skanning.
For several years, the Danish mortgage industry has provided Corporate Actions payments of interests and redemptions in SEK. This was supported by the Danish central bank, Danmarks Nationalbank, and it was an integrated VP service. However, this service discontinues in 2017 as the new KRONOS2 platform launches at Danmarks Nationalbank, and the new offering from VP fills the gap and extends the possibilities in SEK. Figures suggest that the market value of SEK-issuances through VP currently amount 48 billion worth in DKK and that Corporate Action payments total more than 200 million SEK on a yearly basis
“The market participants are obviously looking for new cross-border opportunities as the Nordic markets are getting more integrated and T2S is providing a new European infrastructure. With this new announcement we offer a known and reliable infrastructure for streamlining issuances in both DKK, SEK and EUR, and we provide banks with the ability to service investors in these currencies on the same segregated end-investor account”, says Morten Skanning.
The service will be fully implemented in March 2017. For more information about the solution please see our service sheet here.
If you would like to hear more about central bank money settlement in Swedish kronor, SEK, please do not hesitate to contact us.