Market Link Guide - Switzerland

14.08.2019

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect

a. CSD Regulation (EU) No 909/2014 art. 2 (29)


CSD

Custodian

Name

SIX-SIS AG

UBS AG

FATCA GIIN

N8IQT4.00001.ME.756

N2CI0B.00240.ME.756

LEI

549300A3XI3YWROC2J57

549300WOIFUSNYH0FL22

Country of incorporation

Switzerland

Switzerland

Account type

Omnibus account

Omnibus account

Legal Account name / holder

The account is in the name of Clearstream Banking SA under UBS as custodian and SIX SIS AG participant

Clearstream Banking SA

Operational arrangements

 SECOMT2SRemarks
Settlement free of paymentYesYes 
Settlement against paymentYesYesSECOM: Eligible settlement currency: Swiss  Francs (CHF), GBP and U.S. Dollars (USD).
T2S: Eligible settlement currency: Euro (EUR).
Settlement against payment in central bank money account of CBL/CBL customersNoNo

CBL holds a cash account at the custodian UBS. Against payment settlement in CHF takes place on the cash account of UBS at the Swiss National Bank.

Against payment settlement in EUR takes place on the DCA of UBS Europe SE  at the Deutsche Bundesbank.

Against Payment in EUR settling in SIX SIS takes place on UBS’s own EUR account in SIX SIX. 

Against Payment in GBP take places on UBS’s own GBP account with SIX SIS.

Against Payment in USD take places on UBS’s own USD account with SIX SIS.

Bridge settlementYesYes 
Shaping facilityNoNo 
Partial settlementNoNoSECOM: Only if imposed by the Swiss CSD.
T2S: T2S offers partial settlement but UBS does not offer this service.
Settlement penalty feesNoNoSECOM: In the event of delayed delivery, SIX Swiss Exchange AG foresees the possibility of generating a buy-in procedure.
Pre-matchingYesYes 
Back-to-back processingYesYesSECOM: No pre-matching is performed on back-to-back instructions.
AllegementsNoNo 
Automatic compensationYesYes

Only for Equities and Only in CHF.

Income payments in foreign currencies may, in exceptional circumstances, be subject to delays and will be paid upon receipt only.

Registered securitiesYesYesRefer to the Swiss Registered Shares section.
Multi Market SecuritiesYesYes 
Lending and borrowingYesYes 
Proxy votingYesYes 
Investment FundsYesYesT2S: Hedge funds are not eligible in T2S.
Liquidity Hub ConnectNoNo 
Sale and purchase of rightsYesYes 
Repo servicesYesYes 
Market restrictionsYesYesRefer to Investment Regulation - Switzerland.
FTTNoNo 
Daily reconciliationYesYes
Link eligible for use in Eurosystem credit operationsNoNo 
Moment of entry of instructionsThe rules of SIX SIS do not define the moment of entry within the meaning of the Settlement Finality Directive.
Irrevocability of instructionsThe participant can revoke instructions sent to SIX SIS until the moment at which SIX SIS debits the participant's custody account pursuant to the instruction. SIX SIS doesn’t allow unilateral cancellation after the matched status has been reached. Cancellation after matching have to be instructed by both parties (bilateral cancellation).
Finality of instructionsThe transfer of securities positions effected due to an instruction is completed when a custody account has been credited accordingly. The transfer is final with the credit; the disposing participant loses its rights in the intermediated security that was disposed of.

Legal arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 1 March 2019. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.

No insolvency proceedings against the custodian

Confirmed

Custodian’s liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition of nominee concept

Confirmed

No right of retention to the custodian

Confirmed

Segregation of assets at the custodian

No obligation for custodian to segregate assets. However, in the event of an insolvency of the custodian,there is a presumption that all assets held by the custodian are assets belonging to its account holders.

No right of use

Confirmed

No upper-tier attachments

Confirmed

Insolvency of the custodian with no impact on CBL's rights 

Confirmed. Cash deposited with the custodian benefits from an insolvency privilege up to CHF 100,000 per depositor.

Shortfall pro-rated among holders

Confirmed

Record keeping period of at least 10 yearsConfirmed

Settlement finality in case of insolvency

Confirmed