Finland: Euroclear Finland T2S adaptation plan – cut-over details

29.06.2023

Further to Announcement A23016, Clearstream Banking1 informs clients that effective

11 September 2023

Euroclear Finland Ltd (EFI), the central securities depository (CSD), will change its settlement processes by outsourcing its settlement activity to TARGET2-Securities (T2S). 

Euroclear Finland will send securities settlement instructions received from its participants to T2S for matching and subsequent settlement. Clearstream Banking will continue to access the Finnish market via its direct CBL link to Euroclear Finland operated by Citibank Europe Plc.

Please find below the cut-over details for the handling of pending transactions for Clearstream Banking clients.

Client guidelines for the cut-over

Matched and unmatched instructions with requested settlement date (SD) up to and including Friday, 8 September 2023, and SD Monday, 11 September 2023, or later released to Euroclear Finland

All T2S eligible transactions in matched or unmatched status that have been released to Euroclear Finland or have an intended settlement date (ISD) 8 September 2023 or onwards will be stored by Citibank and released to Euroclear Finland on 11 September 2023 upon receiving confirmation of the successful migration of Euroclear Finland to T2S.

To avoid any late matching penalty fees, Euroclear Finland will not apply any penalties to any instruction matched on Monday, 11 September 2023, regardless of the instructed ISD. 

No action is required from Clearstream Banking clients.

Pending instructions with requested settlement date (SD) up to and including Friday, 8 September 2023, and SD Monday, 11 September 2023, or later not released to Euroclear Finland

Pending T2S eligible transactions in an unmatched status, but not yet released by CBL to Euroclear Finland after 18:00 CET on Thursday, 7 September 2023, will be stored by CBL and released to Euroclear Finland and subsequently to T2S only after confirmation of the successful migration of Euroclear Finland to T2S.

Euroclear Finland investor CSD link to Euroclear Sweden

Euroclear Finland has an investor CSD link to Euroclear Sweden, which allows clients to hold a sub-set of Swedish securities.

The current list of eligible instruments can be found in the below table:

ISIN

Name

SE0000108656

ERICSSON B

SE0016275069

INISSION

SE0002215061

LFS INVEST V

SE0014504817

LOOMIS

SE0001057910

SOTKAMO SILVER

SE0000171100

SSAB A

SE0000120669

SSAB B

SE0000667925

TELIA COMPANY

For these specific ISINs, the following handling applies:

  • Unmatched instructions will be cancelled after 16:00 CET on Thursday, 7 September.
  • For all pending matched domestic instructions, clients must contact their counterparties as early as possible to ensure that these instructions are cancelled by both counterparties by 16:00 CET, as the bilateral cancellation principle applies.
  • Clients impacted will be informed via MT548. Clients will need to reinstruct on Monday, 11 September 2023.

Settlement cut-off time

Euroclear Finland will be closed for business on Friday, 8 September 2023, in order to secure a safe T2S migration.

Market claims and transformations

Any claims and transformations will be reinstructed by Citibank on 11 September 2023 upon receiving confirmation of the successful migration of Euroclear Finland to T2S.

Further information

The Market Link Guide – Finland will be updated accordingly and available on the effective date.

For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG clients using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.