Euroclear Sweden strengthens Sweden's financial system and increases the attractiveness of the Swedish market for investors
As of Tuesday 26 September, share dividends in Sweden will be paid in central bank money instead of commercial bank money. This means that Sweden's financial system is strengthened and that investments are handled in a safer way.
“With safer handling, Sweden will become more attractive to investors, something that is sought after by pension funds and institutional investors, among others. The change that Euroclear Sweden is now implementing serves as an enabler for increased investments and further growth”, says Sandra Holmqvist, Chief Business Officer, Financial Institutions, Euroclear Sweden.
With this change, Sweden is emulating the European model for share payments. It means reduced counterparty risks associated with share dividends, which in turn means lower costs for the financial industry.
The project is a step towards harmonising Swedish post trade processing with the standards used in most of Europe. Euroclear Sweden has run the project for three years together with several banks.
