Finland’s
entry into TARGET2-Securities (T2S) will be delayed, as announced by Euroclear
Finland. The T2S a new European securities settlement engine aimed for all
European securities markets. Finland originally planned to join T2S in February
2017, but Euroclear has suffered delays in developing the required information systems.
”For a long time now, the Finnish financial sector has sent warnings that Finland is in danger of getting isolated in the European securities markets. The problems with T2S are unfortunate examples of this direction”, says Piia-Noora Kauppi, Managing Director of the Federation of Finnish Financial Services. ”The biggest sufferers are Finnish companies that are seeking capital”, she continues.
Joining the common T2S platform would bring Finland one step closer to the European Single Market. It would help the flow of capital and encourage investors to trade internationally.
No information is available on a new schedule for T2S the moment. However, if the delay means it also ensures stable and secure implementation of the system, it could also be a positive thing.
Costly delays
Finns should join T2S as soon as possible in order for the Finnish markets to keep up with European developments and maintain confidence. The original plan was for Finland to join T2S in February 2017, but it was first postponed to September 2017 and now to a yet unspecified date. The delays have tied up the resources of banks and their service providers, hindering their ability to make long-term plans.
”FFI members have done everything they can to join T2S in the original schedule. Delays at this stage keep banks’ resources tied up in an inefficient way, which generates costs”, says Pauliina Lappeteläinen, Special Adviser at the FFI.
