The change is indeed historical: Finland will be joining T2S and will become the 20th European CSD on T2S. By joining, we will become part of a harmonized, safe and well-functioning European securities settlement landscape.
In the last 10 years, the core CSD system, called Infinity, has been replaced with a new system. From the standardization point of view, Infinity Release 2 launched in spring 2018 introduced a service level that is very close to the T2S environment. Therefore, the migration to T2S will have less impact on our CSD clients than the two previous releases.
However, compared to today, T2S will bring longer opening days and times, nighttime settlement, liquidity accounts provided by the central bank and of course, settlement will take place in T2S, which will have a practical impact on how the post trade flows operate. With the Finnish migration, T2S will receive over two million new book-entry accounts to its platform. The migration will bring new features to our CSD clients and it will enable the Finnish market to join the new collateral setup, the Eurosystem Collateral Management System (ECMS), when it´s launched in April 2024.
Joining T2S has been a long journey
Over the last 10 years, Euroclear Finland has invested substantially in the development of the Finnish book-entry system to meet the common European standards and operating models. To make this migration possible, we have undertaken a comprehensive infrastructure renewal program, reforming not only our core system but also our processes and procedures to meet the requirements of the evolving European settlement landscape. I am very proud to say that Euroclear Finland now has one of the most advanced CSD systems in Europe. The journey has required extensive work and commitment not only from everyone at Euroclear Finland, but also our clients, the ECB/4CBs and other stakeholders. Now it’s time to secure the third and last phase of the journey, the T2S migration.