“We work closely with the commercial team, bringing the customer view to development. We are responsible for the product portfolio and development of the new services and features for the clients. Besides IT development work, the job involves pricing of the services and product performance management”, Heinonen explains.
Euroclear Finland’s product strategy for issuers concentrates on developing services for hybrid general meetings and new data products to offer more advanced information services. For participants, the focus is on ensuring client readiness for T2S.
T2S platform harmonizes settlement across all T2S markets and will deliver benefits for the issuers, as well as new services to the market. Already 21 CSDs from 20 different countries have joined the T2S platform, and Finland will join in September 2023. With Denmark already on T2S, and Sweden joining later, there will be possibilities for cross-link activities.
The growing CSD community on T2S may also result in exchanging information and bringing new products to the market through cooperation. Soon after the T2S migration, participants may choose to become directly connected participant in T2S and benefit from a direct communication in the settlement activities. On the other hand, Euroclear Finland’s way to T2S has required major development in the CSD systems and, T2S being an additional layer in the post-trade infrastructure in Finland, it will entail some additional cost for the community which will have an impact on Euroclear Finland’s tariff. The communication related to the new tariff will begin in the end of May 2022.
Gross dividend payment model after T2S
After T2S, Euroclear Finland aims to implement the gross dividend payment model in euro central bank money, as announced in June 2021. This entails automatization of dividend claims in the Infinity system instead of current manual claims between the participants. The automation of dividend claims will also align Euroclear Finland with T2S requirements. For issuers, gross dividend payment model will allow development of the new corporate action event types, such as optional dividend.
“I would also like to mention the Eurosystem Collateral Management System (ECMS), developed by European Central Bank. Post T2S migration Euroclear Finland will develop corporate action services to meet the Score CA standards of the ECMS. Score CA standards introduce, amongst other things, new event types which will benefit the post-trade community in Finland. The financial market is changing and evolving all the time, and we are constantly looking for new ways to meet our clients’ needs and support their business opportunities through innovation and client interaction”, Heinonen concludes.
