Sweden’s central bank, Riksbanken has announced its decision to join the pan-European T2 platform for payment settlement. The bank states in a press release (in Swedish) that the move is a precursor to the transition of securities settlement to the T2S platform.
The decision to sequence the transitions for payments and securities with a time gap is in line with the general preference expressed by market participants in an earlier round of consultation.
Negotiations with the European Central Bank (ECB) will begin this year, with the transition to the platform estimated to take five years. Users of Riksbanken’s payment settlement service, RIX-RTGS, will be consulted on the timeline for transition.
According to the Riksbanken, approximately 700,000 payments with a value of 13,000 billion kronor are made between banks and settled in the RIX-RTGS system every month.
“By connecting it (RIX-RTGS) to the European platform T2 to settle payments in Swedish kronor, we can, together with other central banks, ensure that RIX-RTGS becomes an even safer and more efficient payment system in the long term, both in everyday life and in times of crisis,” says Riksbanken’s head, Erik Thedéen.
Seeking the full picture on Sweden’s approach to T2S? On 4 September, Riksbanken’s Christina Wejshammar, Head of the Payments Department, will join a panel with Sandra Holmqvist from Euroclear Sweden, Ola Mjørud from Citi, Urban Funered from Svensk Värdepappersmarknad (SVPM), and Christine Strandberg from SEB. Secure your free ticket today, here.
