To Infinity and beyond!

Finland will join the cross-border securities settlement platform TARGET2-Securities (T2S) in November 2022. After joining T2S, Euroclear Finland’s infrastructure will meet the requirements of the European settlement landscape.

T2S creates a Europe-wide system and procedures for securities settlement. The change is related to the EU capital markets union, which enables better flow of capital and encourages international trade.

“Joining the T2S platform is an excellent move that brings Finland closer to the EU single market”, says Pauliina Lappeteläinen, special adviser at FFI.

When a security, for example a share or a bond, changes ownership, the buyer pays the price of this transaction to the seller and immediately gains ownership of the security. The transaction sounds simple but requires a complicated process in the cogs and gears of the system, not visible to the investors.

The system in charge of this process is Euroclear Finland’s CSD platform Infinity. It was first introduced in the monetary instruments market in 2015. The rest of the Finnish book entries were migrated to the Infinity system in May 2018. Deploying Infinity in securities settlement is the system’s third and final phase.

“The process has seen some regrettable and costly delays, but in the end it is essential for market reliability that the system is stable and secure when it is taken into use”, Lappeteläinen says.

Euroclear Finland’s press release

European Central Bank’s video on T2S:

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