Swiss based stock and security exchange SIX Group will soon implement a shortened settlement period.
Currently the time taken between trade and settlement in Switzerland is 3 business days. SIX group plans, beginning October 6th 2014, to shave a day off the settlement period resulting in only 2 days.
Below is the official Press Release from SIX Group:
SIX will introduce T+2 settlements for Switzerland starting 6 October 2014
SIX shortens the time period between the Execution of a trade and its settlement. The present settlement cycle in Switzerland is three business days (T+3). Starting 6 October 2014 the settlement cycle will be reduced to two business days (T+2). This shortened settlement cycle covers all securities tradable on SIX Swiss Exchange and SIX Structured Products Exchange and settling through the Swiss Central Securities Depository, SIX SIS AG.
The introduction of a shortened settlement cycle comes after a consultation process with SIX Swiss Exchange’s members and stakeholders who supported a move to harmonize Switzerland’s settlement cycle with other major European markets. It is also in line with the Central Securities Depositories Regulation (CSDR) introduced by European regulators. According to the CSDR, securities transactions in regulated markets and MTFs will be required to settle no later than the second business day after trading takes place, effective from 1 January 2015.
Source: SIX Group
