Cross Border Transfers
We have developed book-entry links for debt securities with two foreign central securities depositories: the link with German Clearstream Banking Frankfurt was opened at the beginning of 1999 and the link with Euroclear France in the fall of the same year.Free of payment transfers
The links are two-way, in other words Finnish debt securities can be transferred for depositing and settlement abroad and foreign securities transferred to Finland. Both links are operated free of payment (FoP,) meaning that parties operating the links must process money transactions related to the trading outside the link. Foreign book-entry securities transferred to Finland are handled in the system in exactly the same way as domestic securities. For example, interest payments are delivered to the investors through the TARGET payment system or through correspondent banks on the payment date early in the morning.
The depository and settlement payments are, moreover, the same for both domestic and foreign issues. Book-entry securities to be transferred through the link must be denominated in euros and meet all the criteria of the clearing and settlement system. The list of currently approved issues to the link can be obtained from Euroclear Finland. It is also possible to approve other debt securities to the link at the request of clients, providing that the issue meets the necessary criteria.
An excellent tool for issuing securities
The link is ideal for Finnish investors who aim to diversify their holdings but keep open their option for choosing the depository. The link is also an excellent tool for issuing securities domestically, even though investors at whom the issue is targeted may be located abroad. At the moment it is also possible to use German government issues for collateral in the collateral account of Ramses system.
.jpg)
