Susanna Pärlfjärd, product manager at Euroclear Sweden, sees benefits through digitalisation and automation of the fund market

A large number of benefits are achieved through greater digitalisation and automation of the fund market. Euroclear Sweden has been working for several years to simplify banks' and fund companies' operations and now sees additional benefits in introducing a central register for fund units.

"We want fund trading to be simple and we want it to take place under the same conditions as shares, for example", says Susanna Pärlfjärd, Product Manager at Euroclear Sweden.

Shares in Swedish companies that are traded on a market place are settled and registered centrally at a central securities depository. This takes place according to standardised conditions and procedures, whereas funds are traded at each fund company, where they are registered according to different procedures.

For example, if a bank wants to be able to offer a wide range of funds to its customers, it involves keeping track of a large number of procedures. That in turn can lead to different prices a limited range of funds being offered to the customer.

"We see great value in funds being managed in the same way as other types of securities. A central book-entry register for fund units would enable fund market operators to manage their securities processes in a uniform manner and would thus enable them to cooperate even more efficiently", says Susanna Pärlfjärd.

Euroclear Sweden currently manages a number of different types of securities such as shares, warrants and bonds in its securities system. Changes taking place in connection with trading and corporate events are registered and managed in that system. Euroclear Sweden has over 1400 affiliated companies, including all Swedish companies whose shares are listed for trading. The infrastructure, in the form of standards, rules and systems, is therefore already in place and could also be applied to fund units.

"The Central Securities Depository's overall objective is to promote stability, security and efficiency. That is what we are working on, along with our customers, in all our processes – to make the Swedish financial market more efficient", says Susanna Pärlfjärd.

About Euroclear Sweden

Euroclear Sweden has been the Swedish Central Securities Depository since 1971. The company contributes to safe and efficient management of securities in the Swedish market. Euroclear Sweden is part of the Euroclear group, which consists of Euroclear Bank and the central securities depositories in Belgium, Finland, France, the Netherlands, Sweden, the United Kingdom and Ireland.

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