Transaction Management and Entitlement Compensation Rules - Switzerland

06.10.2014

Equities

Market compensation basis:Trade Date
Automatic Compensation Managed by Local CSD:Yes
Restriction on custody events/transaction types:
Only cash and securities dividends, capital gains, bonus shares, reinvestments, spin-offs and rights/warrants are eligible for Cross-Ex Compensation.
Additional information:

Payments of Swiss dividends are usually made on the pay date based on the so-called "eligible dividend position", that is, on the holdings booked as at the record date (EOD) which were concluded prior to the ex date. Compensation bookings are then only made for transactions with a trade date before the ex-date; these are then settled after the record date within the compensation period. The compensation period is 20 working days, counting from and including the pay date.

Automatic compensation can be avoided by If it is traded on or after the ex-date but settles before or on the record date the eligible dividend position will be adjusted accordingly.

Cross-Ex Compensation is based exclusively on the Trade Date indicated in the delivery instruction.

The compensation cannot be entered in SIS until the corporate action has been booked and the transaction has settled.

CBL shall book securities/cash credits/debits resulting from CBL’s depository Cross-Ex Compensation to the customer’s account at the latest two days after the Compensation Date in SIS, with value that day.

Note: The Compensation Date corresponds to the actual Settlement Date of the transaction or to the Booking Date of the corporate action, whichever is the more recent.
Service offered by CBL:Adjustment is performed based on information received from the depository.

Bonds and equities (corporate actions not listed above)

Market compensation basis:Trade Date
Automatic Compensation Managed by Local CSD:No
Restriction on custody events/transaction types:
Corporate actions not listed under "Equities" above are not eligible for Cross-Ex Compensation. For these corporate actions, compensation has to be arranged directly between CBL customers and their domestic counterparties.
Service offered by CBL:No service offered