About Euroclear Sweden

We are Sweden’s central securities depository

We work to ensure that securities are managed securely and effectively on the Swedish market, a role we have been fulfilling since 1971, originally under the name Värdepapperscentralen VPC AB. In 2008, we became a part of the international Euroclear Group which is based in Brussels, Belgium. Ever since, we have gone by the name Euroclear Sweden.

Our system for digital securities at Euroclear Sweden manages the actual exchange of securities such as shares or bonds, as well as money transferred as a result of trade on the Stockholm Stock Exchange and other marketplaces. This exchange of securities and money – the process by which a security changes owner – is known as settlement.

Approximately 2000 companies – including all listed limited companies in Sweden – are affiliated with our securities system. Around 50 banks and other financial institutions use our system on a daily basis in order to manage and settle securities, including shares traded on various different marketplaces. The latest development at Euroclear Sweden is an information and analysis service which provides more detailed insight into a company’s shareholder base, Vantage by Euroclear. In addition, we also help many of our customers to organise and hold their annual general meetings.

We possess solid knowledge and expertise as we have been the hub of the Swedish financial market for more than fifty years. This is knowledge we are happy to share. Please feel free to contact us if you have questions about our business or want to become a client.

What does Euroclear Sweden do as a central securities depository?

Put simply, we have two primary tasks:

  • To keep a register of the securities held in accounts in our securities system. This is called book entry.
  • To provide services that banks and financial institutions can use to process purchase/sales transactions and thus transfer securities between accounts in our system (i.e. allow securities to change owners). This is called settlement.

From share certificates to digital ownership

A common form of securities is shares, whereby you own shares in limited companies.

Before 1989, shares normally existed in Sweden as physical share certificates. These physical share certificates, stating the ownership of a certain number of shares in company, were stored in e.g. a safe and had to be transported from the seller to the buyer in connection with a trade.  

Since 1990, physical share certificates are no longer used for shares traded on the stock exchange and other market places, and all listed companies in Sweden have registered their shares with us. This means that the information about who owns certain shares is stored in our digital book entry system, and the physical share certificates have been converted into digital ownership registered in our security system. In other words, the shares have become dematerialised. When a limited company registers its shares with us as a CSD, the shares are dematerialised and the ownership of the shares are recorded on accounts in our book entry system. Information about who holds which shares is collected in the company’s register of shareholders.

What does a share trade look like in our system?

When someone wants to buy or sell a share that is registered in our system – usually through their bank – the bank informs us that the share is about to change owner. Euroclear Sweden then checks that the buyer has money on their account and that the seller has the share on their account. If everything is in order, the change of ownership goes through via our system. This last step of a share trade, the actual exchange of the securities and corresponding payment as well as the transfer of ownership of the securities, is what is called settlement.

Besides shares, Euroclear Sweden also manages a broad range of securities such as bonds, warrants, convertibles and other structured products. These are managed in a similar way as shares.

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