SIX Swiss Group prepares for T+2 settlement
Switzerland’s SIX Group will move to T+2 settlement starting on 6 October 2014, bringing Switzerland into line with the UK, France, Germany, the Netherlands and Russia.
At present, Switzerland is on T+3 settlement, meaning trades settle in three business days. The move towards T+2 is intended to reduce risk and harmonise the Swiss market with other major European markets. All securities tradable on SIX Swiss Exchange and SIX Structure Products Exchange will be affected, provided they settle through the Swiss Central Securities Depository.
The move also anticipates the Central Securities Depositories Regulation introduced by European regulators, which is due to take effect in January 2015 and which formally moves trading on all regulated markets and MTFs in Europe to T+2 settlement.
Euroclear announced that it would move the UK, Ireland, France and Netherlands onto T+2 settlement from October 2014. Meanwhile, Russia has already moved to T+2 settlement since summer 2013, in a move that was characterised at the time as the biggest shift for the country’s securities markets in 20 years.
Last month, Switzerland’s SIX Financial Information began delivering FATCA tax information to the US Inland Revenue Service, ahead of the controversial extraterritorial tax’s reporting deadline in July.