Sub-custody guide: Switzerland

Sub-custody guide: Switzerland

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 Significant progress in preparation for T2S was made in Switzerland last year and by June 2015 the Swiss market will be fully compliant with the T2S corporate action standards. The trend to further consolidate networks and avoid additional links in the custody chain has accelerated and is expected to continue through this year.

A law proposal of the Swiss Federal Council has been published to adapt the Financial Market Infrastructure Act (FMIA) in a way that it is equivalent to Emir and international recommendations, although with more than 80 requested changes from the industry it is expected that FMIA will not be formally enacted before the end of 2015.

Switzerland

Also in 2014, the Federal Council launched a reform to strengthen the capital market with the proposed introduction of the paying agent principle for bonds instead of the current debtor principle.

In preparation for T2S, automated Swiss cross-ex compensation will be replaced by the Europe-wide agreed best market practice market claim procedure. Other important changes will be in the field of rights trading with a move from T+2 to T+1 as well as a manual buyer protection procedure, explains Ronald Akkermans, head custody, FI, sales and business development at UBS. 

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