CASCADE Link Guide - Switzerland

15.05.2017

Key features

Yes/NoRemarks
Settlement free of paymentYes
Settlement against paymentYesEligible settlement currency: Swiss  Francs (CHF).
Settlement Cycle CBFLimitedContinuous settlement (Cont-SDS FoP) and RTS DvP.
Bridge settlementNo 
Shaping facilityNo 
Partial settlementNo 
Settlement penalty feesNoIn the event of delayed delivery, SIX Swiss Exchange AG foresees the possibility of generating a buy-in procedure.
Pre-matchingYes 
Back-to-back processingNo
AllegementsNo 
Bilateral cancellationYes
Automatic compensationYesIncome payments only and in CHF.
Registered securitiesYesWhen held in CBF, registered shares are kept in the so-called “dispo positions” at SIX SIS (this corresponds to the unregistered positions at CBF). This means that the securities cannot be registered in the name of the final beneficiary.
Multi Market SecuritiesNo 
Lending and borrowingNo 
Proxy votingYes 
Investment FundsNo 
Liquidity Hub ConnectNo 
Sale and purchase of rightsNo 
Repo servicesNo 
Market restrictionsYes Refer to Investment Regulation - Switzerland.
FTTNo
FATCA GIINYes SIX-SIS AG     N8IQT4.00001.ME.756
MiscellaneousNo
Type of linkCSD or settlement method
Direct linkSIX-SIS AG

CBF-eligible security types

  • Government debt securities;
  • Corporate bonds;
  • Foreign bonds denominated in Swiss Francs;
  • Equities in bearer and in listed registered form;
  • Investment funds;
  • Warrants.

Note: Eligible securities are securities that have been accepted bilaterally for cross-border transfer by both CBF and the relevant CSD. The eligibility of a given security, as well as the relevant CSD, can be checked by using the WSIS/CS function of CASCADE.

Depository

SIX SIS AG
Baslerstrasse 100
CH-4600 Olten
Switzerland

Cash correspondent details

Currency:Swiss Franc (CHF)
CCB name:Schweizerische Nationalbank (SNB)
CBF account:Customer’s direct account at SNB or via Cash Correspondent Bank
SWIFT address:SNBZCHZZ

In order to settle transactions against payment in CHF with local counterparties through SIX SIS, CBF customers must open a direct account at SNB or at a cash correspondent bank connected to SNB.

Applicable deadlines:

For any purchase, the cash amount in CHF must be made available at the latest by 16:00 on SD either at SNB or by the correspondent bank.

Note: As there is no netting process, purchased securities are only credited if there is sufficient cash cover on the SNB account.

Pre-matching service

The table below summarises CBF’s pre-matching service for cross-border settlement instructions, as well as the pre-matching method and start time in the market.

Service offeredMethod employedStart (local time)
All securities
Release of pre-matching instruction followed by a settlement instructionAutomated through SIX SISOn receipt of instructions

Passive matching service

The passive matching service is not available on this link.

Settlement times

The deadlines shown below are valid provided that the customer's instructions are complete, accurate and eligible for straight-through processing (STP) in CBF and in the local market. Customers must also ensure that any necessary provision is available. If one or more of these criteria are not met, CBF cannot guarantee timely settlement.

Important Note: As part of CBF’s internal compliance procedures, all incoming customer instructions will be automatically scanned before entering transaction processing. Instructions that are internally flagged as requiring further manual investigation are set to status pending, with such status immediately reported to the Customer via their chosen media channel(s), until either being manually released for processing or rejected. In order to ensure that instructions being investigated do not miss the applicable deadlines, Customers are advised to input instructions at least 15 minutes before the associated deadline.

InstructionProvisioningDeadline for receipt of valid instruction aExpected settlement results
startendfromtovalue
AP=Against payment FOP=Free of payment SD=Settlement date (rtp)=Real-time processing
ReceiptsFOP
No instruction is required for a receipt free of payment.
AP06:00
SD
16:00
SD
16:00
SD
SD (rtp)17:00
SD
SD
DeliveriesFOP06:00
SD
18:00
SD
18:00
SD
SD (rtp)SD+1 (rtp)
AP06:00
SD
16:00
SD
16:00
SD
SD (rtp)17:00
SD
SD

a. All deadlines refer to online placement in CASCADE and depend on timely SIX SIS matching and sufficient cover.

Procedures for domestic counterparties

Procedure for the domestic counterpartyDeadline
Receipt in CBF
Domestic counterparties delivering securities free of or against payment in favour of a CBF customer must indicate the following information in their instruction to SIX SIS:

Deliver to:
Market deadline
-Business Partner Identification (BPID) linked to account of receiving party in CASCADE; or
-DAKV plus 8-digit account number of receiving party in CASCADE
Delivery from CBF
Domestic counterparties receiving securities free of or against payment from a CBF customer must indicate the following information in their instruction to SIX SIS:

Receive from:
Market deadline
-Business Partner Identification (BPID) linked to account of delivering party in CASCADE; or
-DAKV plus 8-digit account number of delivering party in CASCADE

Allowed countervalue difference

A maximum difference in countervalue of CHF 27 is allowed for the matching and settlement of transactions with domestic counterparties. In the case of a discrepancy within this limit, the receiving party’s cash amount shall prevail.

Matching criteria

The following matching criteria are relevant for against payment instructions only:

  • Trade date (only mandatory for deliveries to an SIX SIS counterparty);
  • Deliverer’s customer number (debit account);
  • Recipient’s customer number (receiver account);
  • ISIN;
  • Nominal value;
  • Cash equivalent up to CHF 27.00;
  • Currency;
  • Settlement date;
  • Beneficiary’s account (on delivery instructions);
  • Ordering party’s account (on receipt instructions).

Back-to-back processing

Back-to-back processing is not available in the Swiss market. Nevertheless, same-day turnarounds are in principle possible, provided that the customer sends its receipt instruction as early as possible to CBF for further processing and that securities/cash provision is available.

Management of failed instructions

In accordance with the procedures for meeting the new SIX SIS standards, unsettled receipt instructions are automatically cancelled twenty calendar days after the requested settlement date.

Instructions that have been validated in CASCADE cannot be changed. If an instruction with the status “verified” must be changed, this instruction must be cancelled and re-entered with a different instruction number. Please note that the cancellation must be carried out before the new instruction is entered.

Bilateral cancellation

If a party sends a cancellation instruction for a matched instruction it is accepted, but only executed when the other party also sends a cancellation instruction.

If only one party sends a cancellation instruction then the matched instruction will settle on the intended settlement date.

Registered shares

When held in CBF, registered shares are kept in the so-called “dispo positions” at SIX SIS (this corresponds to the unregistered positions at CBF). This means that the securities cannot be registered in the name of the final beneficiary.

New issues settlement

Transactions in new issues and subscriptions are settled on the day on which distribution/subscription occurs in Switzerland. For confirmation times, please refer to “Settlement times” above.

EUREX processing of underlying Swiss securities

The EUREX exercises are performed in the form of OTC transactions via the settlement system of the respective CSD. CASCADE automatically generates necessary delivery/receipt instructions that are shown as matched. No confirmation of the relevant counterparty is therefore required.

The settlement of EUREX receipt/delivery instructions of underlying Swiss securities follows the principle of the settlement of a receipt/delivery of Swiss securities from/to a Swiss counterparty.

  • EUREX exercises are processed in the first same-day settlement cycle (1.SDS).
  • EUREX generates both the security delivery and receipt instructions to both CASCADE and SIX SIS settlement system. Instructions are received matched.
  • The cash settlement of the countervalue of the underlying securities in Swiss Francs is performed through the customer's account (or appointed cash clearer) at SNB.

For additional information about this service, please contact your Relationship Officer.