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. |
Local legislation
The below section is valid on the date of the legal opinions that were issued and might be subject to change. 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. The scope of the legal opinions is limited to the local legislation applicable to the relevant CSD (and intermediary, if any). For links using an intermediary located in another jurisdiction, please find a separate Local legislation section for the jurisdiction of the intermediary below. For clients accessing local markets via other Clearstream entities, please also review the Local legislation section in the relevant Market Link Guide for such Clearstream entity.
Local legislation of the CSD/Intermediary | |
Date of legal opinion | 30 June 2024 |
Nature of rights on securities | Substantive law of the jurisdiction will govern the nature of the rights on the Securities. Rights on the Securities are of other nature/type (chose in action, right to provide instructions to CSD on behalf of Customers, co-ownership rights, trustee rights, sui generis rights, etc.). No differences in conclusions in case of sub-accounts for Customers within the Direct CSD Account. |
Recognition of nominee concept | Nominee concept not expressly recognized under local law, but possible to hold assets in name of another entity. |
No right of retention to the CSD under local law | CSD has a lien or similar encumbrance under local law, but such lien could be contractually excluded or waived. |
No upper-tier attachments | Securities would not be subject to attachment. |
No right of use without prior consent | Laws of the jurisdiction restrict CSD from using securities without Clearstream’s prior consent. |
Segregation of assets at the CSD | CSD is under legal/regulatory obligation to segregate the securities held for each participant. |
Loss of assets | No general restrictions on ability to recover lost assets or on indemnification under local law, subject to certain exceptions noted by counsel (such as force majeure, no negligence by the CSD, liability caps, sovereign immunity, etc.). |
Ability to recover client assets in the event of insolvency of CSD | Securities would be recoverable. |
Ability to recover client assets in the event of insolvency of Agent | Securities would be recoverable in the event of insolvency of the Subcustodian. Claim to cash as a general creditor in case of insolvency of the Subcustodian. |
Shortfall pro-rated among holders | Shortfall in the securities may be allocated pro rata, but counsel noted certain nuances. |
Settlement finality in case of insolvency | Transfer orders may be revoked in certain circumstances. |