During 2014 the primary focus of the Danish market has been on T2S preparations with the local CSD VP Securities. The Danish migration plan is to connect to T2S in two phases. The first phase will take place in September 2016 and will include only euro-nominated settlement. Settlement in the local currency, Danish kroner, is expected to follow in late 2018.

The Danish market decided, together with the other Nordic markets, to change the settlement cycle from T+3 to T+2 as of October 2014. The decision was made well before the final deadline set by the European Union in the Central Securities Depositories Regulation (CSDR).

Janne Palvalin, manager at Nordea Securities Services says transition to the new settlement cycle went smoothly: “The process has had basically no impact on the settlement rates. Necessary changes to market practices for settlement and corporate actions processing were also agreed together with all relevant stakeholders.”

The Danish partial redemption process will be amended in September 2015 and VP Securities has indicated its preference to migrate to ISO 20022 by 2016.