Switzerland: SIX SIS introduces market changes

17.11.2016

Clearstream Banking1 would like to inform customers that, effective

21 November 2016

The Swiss Central Securities Depository SIX SIS will introduce market changes concerning bilateral cancellations, settlement tolerance and market claims.

Impact on customers

Bilateral cancellations

Currently, pending domestic instructions that settle in SIX SIS's securities clearing and settlement system, SECOM (rather than settlement in TARGET2-Securities (T2S) can be unilaterally cancelled by either of the two settlement parties irrespective of whether or not the instructions are matched.

Effective 21 November 2016, with the introduction of bilateral cancellation in SECOM, 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.

All matched and unmatched instructions will still be automatically cancelled after 20 days following the intended settlement date.

Settlement tolerance

The settlement market tolerance is being reduced from CHF 40 to CHF 25.

Market claims

Currently, instructions that settle in SECOM (rather than in T2S), which are submitted with the following optional fields are ignored.

Effective 21 November 2016, these additional fields are not mandatory, but they will become matching fields if one party instructs with the qualifier. Both parties must instruct with the same qualifiers in the “:22F:” field or leave them blank, otherwise the instructions will not match.

Purpose of the additional matching fieldCreation via SWIFT and CreationDirectCreationOnline

Opt-out indicator

Customer wishes to opt out from market claims or transformations

:22F::STCO//NOMCOpt-out indicator

Cum indicator

Customer wishes to indicate its transaction as cum coupon

:22F::TTCO//CCPNCUM/EX indicator

Ex indicator

Customer wishes to indicate its transaction as ex coupon

:22F::TTCO//XCPNCUM/EX indicator

Further information

The Creation Link Guide - Switzerland will be updated in due course.

For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.

------------------------------------------

1. Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking Frankfurt (CBF) customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.