Special-Rate Repo

The interest rate charged for the provision of liquidity under the liquidity-shortage financing facility is above the spot rate. In special-rate repo transactions, the Swiss National Bank is the lender of last resort. Banks wishing to use this service are required to open a special custody account called a Custody Cover Account "SNB" with SIX SIS AG and provide collateral.

The collateral deposited in the Custody Cover Account "SNB" can also be used for intraday repo transactions. The Swiss National Bank has a right of lien: it reserves collateral in a bank's Custody Cover Account "SNB" and makes the countervalue in CHF available to the bank, for instance, in the SIC system.

SIX SIS AG ensures that the liquidity-shortage financing limit is covered by collateral at all times. In the event of insufficient cover, margin calls are automatically triggered in favor of the Custody Cover Account "SNB".

By choosing SIX SIS AG as your partner, you can benefit from efficient automated processes and minimize settlement risk.