Swiss Securities Post-Trade Council sets T+1 move for October 2027
23 January 2025 Swizerland
Image: png-jpeg-vector/stock.adobe.com
The Swiss Securities Post-Trade Council (swissSPTC) has recommended that the transition to a T+1 settlement cycle for the domestic markets in Switzerland and Liechtenstein should occur in October 2027.
It follows the recent announcement from the European Securities and Markets Authority (ESMA), which recommended 11 October 2027 as an optimal date to begin the transition.
Synchronising the transition date for the UK, Europe, Switzerland, and Liechtenstein is the preferred solution of the swissSPTC and “in the interests of concerned markets and users”.
In the event of a delay in one jurisdiction, domestic markets will seek to align their timeline with the “first mover”, provided the migration occurs no earlier than October 2027.
According to the council, this approach ensures consistency with the agreed schedule while accommodating any necessary adjustments.
The recommended date of transition is acknowledged by the Swiss State Secretariat for International Finance (SIF).
SIX also acknowledges this recommendation and will commence the process of seeking approval to adjust the Rule Book of SIX Swiss Exchange to accommodate the change of the settlement cycle at the appropriate time.
The swissSPTC Task Force T+1 will now commence detailed assessments on specific proposals and produce recommendations for the transition.
It is further recommended by Florentin Soliva, swissSPTC chairman, that the Swiss and Liechtenstein market participants continue to drive forward their internal planning to adopt a shorter settlement cycle and ensure their preparedness for an effective migration.
Simon Belser, head of International Custody at SIX, comments: "The announcement from swissSPTC recommending a coordinated migration to T+1 with both the EU and UK marks a significant step forward. The biggest challenge for Europe in making a smooth transition to a shorter settlement cycle was the costly scenario of misalignment between the EU, UK, and Switzerland.
"With a joint October 2027 transition now looking more certain, SIX, as the main market infrastructure operator in Switzerland, will work together with the Swiss market to ensure all market participants are prepared. SIX will begin the process of seeking approval to amend the Rule Book of SIX Swiss Exchange to accommodate the change in the settlement cycle at the appropriate time.”
It follows the recent announcement from the European Securities and Markets Authority (ESMA), which recommended 11 October 2027 as an optimal date to begin the transition.
Synchronising the transition date for the UK, Europe, Switzerland, and Liechtenstein is the preferred solution of the swissSPTC and “in the interests of concerned markets and users”.
In the event of a delay in one jurisdiction, domestic markets will seek to align their timeline with the “first mover”, provided the migration occurs no earlier than October 2027.
According to the council, this approach ensures consistency with the agreed schedule while accommodating any necessary adjustments.
The recommended date of transition is acknowledged by the Swiss State Secretariat for International Finance (SIF).
SIX also acknowledges this recommendation and will commence the process of seeking approval to adjust the Rule Book of SIX Swiss Exchange to accommodate the change of the settlement cycle at the appropriate time.
The swissSPTC Task Force T+1 will now commence detailed assessments on specific proposals and produce recommendations for the transition.
It is further recommended by Florentin Soliva, swissSPTC chairman, that the Swiss and Liechtenstein market participants continue to drive forward their internal planning to adopt a shorter settlement cycle and ensure their preparedness for an effective migration.
Simon Belser, head of International Custody at SIX, comments: "The announcement from swissSPTC recommending a coordinated migration to T+1 with both the EU and UK marks a significant step forward. The biggest challenge for Europe in making a smooth transition to a shorter settlement cycle was the costly scenario of misalignment between the EU, UK, and Switzerland.
"With a joint October 2027 transition now looking more certain, SIX, as the main market infrastructure operator in Switzerland, will work together with the Swiss market to ensure all market participants are prepared. SIX will begin the process of seeking approval to amend the Rule Book of SIX Swiss Exchange to accommodate the change in the settlement cycle at the appropriate time.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
