Market Link Guide - Switzerland
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 Switzerland 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
| SECOM | T2S | Remarks | |
| 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 clients | 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 Client 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 | Limited | Limited | SECOM: In the event of delayed delivery, SIX Swiss Exchange AG foresees the possibility of generating a buy-in procedure. CSDR SDR cash penalties may occur for specific cross border transfers in non-Swiss securities |
| 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 22 June 2023. 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 |