The new system is intended to bring benefits of standardisation to the market and to increase flexibility for participants, while also helping to ensure compliance with new CSD regulation.
The change is partially a response to the new European regulatory landscape, and the pressure for CSDs and market participants to adapt their systems and operations quickly.
In order to help Euroclear Sweden to comply as effectively as possible, along with the market it opted to create a new Swedish CSD system rather than upgrading the existing one.
The new system will be built on the same platform being rolled out for Euroclear Finland, with the additional implementation of specific Swedish requirements.
Niels Van Hee, head of application development of maintenance, said: "In the medium-term, the new system, built around ISO standards, will allow our clients to harmonise and standardise their own processes, potentially leading to cost reductions."
He added: "In the long-term, with a more flexible system, we will be in a better position to upgrade our offering and provide new services to the market."
System will be built on the same platform being rolled out for Euroclear Finland, with the additional implementation of specific Swedish requirements.
Work has begun on meeting with market participants to inform them on the status of the project and the time frame. Discussions will involve several reference groups, with participation from Euroclear Sweden as well.