Market Link Guide - Switzerland

02.07.2020

Key features

CSD link as defined under CSDRa

Yes

Type of link

Indirect

a. CSD Regulation (EU) No 909/2014, Article 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 S.A. under UBS as custodian and SIX SIS AG participant

Clearstream Banking S.A.

Operational arrangements

SECOMT2SRemarks
Settlement free of payment

Yes

Yes

Settlement against payment

Yes

Yes

SECOM: 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 customers

No

No

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.

Short selling of entitlement

No

No

Short selling of income or corporate actions proceeds is not authorised for settlement in CBL. Please refer to section 4.5 of the CBL Customer Handbook.

Bridge settlement

Yes

Yes

 
Shaping facility

No

No

 
Partial settlement

No

No

SECOM: Only if imposed by the Swiss CSD.
T2S: T2S offers partial settlement but UBS does not offer this service.
Settlement penalty fees

No

No

SECOM: In the event of delayed delivery, SIX Swiss Exchange AG foresees the possibility of generating a buy-in procedure.

Pre-matching

Yes

Yes

 
Back-to-back processing

Yes

Yes

SECOM: No pre-matching is performed on back-to-back instructions.

Allegements

No

No

 
Automatic compensation

Yes

Yes

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 securities

Yes

Yes

Refer to the Swiss Registered Shares section.
Multi Market Securities

Yes

Yes

 
Lending and borrowing

Yes

Yes

 
Proxy voting

Yes

Yes

 
Investment Funds

Yes

Yes

T2S: Hedge funds are not eligible in T2S.

Liquidity Hub Connect

No

No

 
Sale and purchase of rights

Yes

Yes

 
Repo services

Yes

Yes

 
Market restrictions

Yes

Yes

Refer to Investment Regulation - Switzerland.
FTT

No

No

 
Daily reconciliation

Yes

Yes

 
Link eligible for use in Eurosystem credit operations

No

No

 
Moment of entry of instructions

The rules of SIX SIS do not define the moment of entry within the meaning of the Settlement Finality Directive.

Irrevocability of instructions

The 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 instructions

The 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 23 April 2020. 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 years

Confirmed

Settlement finality in case of insolvency

Confirmed