Sweden's Riksbank has decided to begin contractual negotiations with the Eurosystem so securities transactions can be settled in SEK on the TARGET2-Securities platform. The move advances the central bank’s 2021 direction to use T2S for Swedish securities settlement and is intended to align the Swedish market with common European technical solutions and standardised processes. Euroclear Sweden AB, Sweden’s central securities depository, will also start its own contractual negotiations and preparations, with the transition planned to be completed by September 2030. The Riksbank’s assessment is that joining T2S would allow it to provide central bank money for securities settlement in a competition-neutral way while increasing harmonisation with the rest of the European Union. It also concluded that a transition would not undermine its monetary policy mandate or its role in supporting a stable and efficient financial system. At the same time, the negotiations are expected to address compatibility with Swedish law and the Riksbank’s interests, including issues around confidentiality, public access to information, personal data, private law aspects of settlement finality and ongoing European Union negotiations on new legal acts affecting settlement. Next steps include the Eurosystem’s feasibility assessment phase and parallel internal preparations by the Riksbank for implementation. The Executive Board intends to decide before the end of 2026 on the budget and timetable for the implementation project, while the earlier accession cost estimate of about SEK 95 million will be revised because the timetable, organisation and scope have changed. The Riksbank’s stated ambition is to sign the required agreements with the Eurosystem by October 2027.

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