The study confirms that there are split views in the market concerning the path forward for the Swedish securities market, in particular concerning T2S, which was given increased attention in the report after the Riksbank’s directional decision in favour of T2S.
- In general, international players with operations in several European markets, including large international banks and CCPs, are more keen to migrate to T2S due to the increased cross-border efficiencies T2S could bring and the fact that they already have migrated to, and thus invested in, T2S in other markets.
- Most Swedish/ local account services, however, are either negative or neutral towards a potential T2S migration, due to the uncertain nature of the benefits, or potentially even drawbacks, in comparison to the costs.
With regards to benefits, it was highlighted that T2S might accelerate harmonisation with other European markets, and imply being part of a broader harmonisation journey in Europe, helping prepare the local market better for future regulatory EU changes. Key concerns raised include reduced control over market infrastructure as settlement is outsourced outside Sweden, limited benefits to Sweden as T2S is mainly built for Euro-markets, and high migration costs as well as running costs, which may negatively impact end-investors.
In conclusion, the study conveys that a T2S migration would entail significant effort from all participants. Besides time and resources, this also requires considering the business model vision for a post-T2S world, securing appropriate staffing, legal changes, and ensuring commitment from senior management (CFOs/CEOs) due to the size of investment.
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