Settlement process - Switzerland
Settlement cycles
| Stock Exchange trades: | Trades on the Swiss Exchange SWX must settle by the third day after the trade (T+2). |
| OTC trades: | Freely negotiable between the parties but the market practice is T+2. |
Settlement flow
Clearing and Settlement is done via SECOM, SIS's fully owned RTGS securities clearing and settlement system. A direct electronic interface between SECOM and the SIC, which is owned and operated by the Swiss National Bank, allows simultaneous, final and irrevocable settlement against central bank money for delivery versus payment transactions in CHF.
Transactions against payment in EUR are settled via SIS's electronic interface to EUROSIC, a clone of the SIC payment system that connects the Swiss banking community to TARGET via the Swiss Euro Clearing Bank GmbH in Frankfurt.
SIS clears stock exchange trades concluded at the SIX Swiss Exchange as well as OTC transactions. Immediately upon conclusion, a stock exchange trade is forwarded via electronic interface between the SIX Swiss Exchange and SIS to the SECOM system to be settled.
With the exception of bank-issued medium-term notes and money market book-entry claims that are settled and deposited with the issuing bank, all debt securities in Switzerland settle in SECOM.
Registration
The majority of shares traded in Switzerland are registered in the share register of the respective company in the names of the individual shareholders. The SIS share register model is based on a system of one-way certificates, registered shares accepted by SIS can only be transferred by assignment.
Stamp duty
Stamp duty is not applicable in the Swiss market.
Penalties (buy-ins etc.)
In the event of delayed delivery, SIX Swiss Exchange AG foresees the possibility of generating a buy-in procedure.