A structural transformation of securities trading in Sweden and in Europe is currently under way. As the central bank, the Riksbank has an important role for both the safety and efficiency of securities settlement. In a Riksbank Study, the authors highlight the issue of how Swedish securities should be settled in the future and how the Swedish securities market should respond to European developments and to the new European Target2-Securities platform (T2S).
As a result of its task in the Sveriges Riksbank Act to promote a safe and efficient payment system, the Riksbank has an important role to safeguard financial stability. This includes ensuring that there are safe and efficient systems for settling payments and securities transactions in central bank money, i.e. Swedish krona (SEK) issued by the Riksbank.
The Riksbank has recently decided to enter into negotiations about using the Eurosystem’s TIPS platform for instant payments in central bank money in SEK. For a few years now, there has been a new type of technical infrastructure for the settlement of securities operated by the Eurosystem, called T2S. The Riksbank is currently thinking about how settlement of Swedish securities could evolve to ensure that the Swedish securities market remains attractive. The Riksbank is investigating whether T2S may be an alternative in order to safeguard a safe and efficient way for the Riksbank to supply central bank money for securities settlement in SEK in a standardised way to several central securities depositories (CSDs).
With this study, the Riksbank wishes to invite all stakeholders in the Swedish securities market to a dialogue on what the future holds for Swedish securities settlement.