About SIX SIS AG

Organization - SIX SIS AG (CSD)

SIX SIS AG provides custody services for clients in Switzerland and abroad.

SIX SIS is the national Central Securities Depository (CSD) of the Swiss financial market and an International Central Securities Depository (ICSD), providing complete services for the settlement and custody of national and international securities. It operates one of the worlds few online real-time settlement systems (SECOM) allowing market participants to settle their transactions via a single technical interface.

General Terms and Conditions

In order to initiate a business relationship with us, you must acknowledge and sign the basic contracts.

    General Terms and Conditions of SIX SIS AG (GTC SIX SIS)

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Publication of essential information within the meaning of Art. 19 lit. c FMIO / Art. 21 FMIA

The Financial Market Infrastructure Act (Federal Act on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading of 19 June 2015) requires financial market infrastructures to regularly publish the key risks for participants associated with the services provided.

    Publication of essential information within the meaning of Art. 19 lit. c FMIO / Art. 21 FMIA

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Swiss National Bank Ordinance (NBO)

The Swiss National Bank Ordinance (NBO) provides for default procedures for SIX x-clear AG (“SIX x-clear”) and SIX SIS AG (“SIX SIS”). These procedures are designed to efficiently support any member of SIX x-clear or participant of SIX SIS in the event of a member’s/participant’s default while also protecting the Swiss financial market infrastructure.

Default procedures for SIX SIS AG & SIX x-clear AG

Any default event is managed in accordance with the applicable general terms and conditions and operational guidelines of SIX x-clear and SIX SIS. A default of a member/participant triggers their suspension and subsequent operational measures. These processes require authorizations and executions.

A designated Default Management Committee will therefore steer the default procedures.

Function

Roll

CEO of SIX SIS/ SIX x-clear

Decision-maker

CRO of SIX SIS/ SIX x-clear

Decision-maker

SIX Group Head Risk Management

Decision-maker,

“Default Process Manager”

2 addition people appointed by the CEO of SIX SIS / SIX x-clear

Decision-maker

Head Business Risk Management

“Default Process Coordinator” of SIX SIS

Head Clearing Operations (CH & NO)

“Default Process Coordinator” of SIX x-clear

Legal, Financial Risk Management, Relationship Management

Advisor

Investment Policy

Introduction

The present publication outlines the investment policy of SIX x-clear and SIX SIS and presents the respective regulations as enacted by the Board of Directors and communicated to the supervisory authorities. It shall provide transparency regarding the investment risks in relation to the collateral provided to SIX x-clear and SIX SIS and in relation to the investable excess liquid funds. It further defines the types of investments that can be made and the relevant rules to be observed.

General Investment Policy

The investment strategy of SIX x-clear and SIX SIS is embedded within SIX Group’s overall Risk Policy and Risk Appetite Framework. It follows a highly conservative approach with the main objective of ensuring the provision of liquidity with minimal credit and market risks. A secondary objective is the achievement of a certain return on investments, which will allow for tighter pricing of the services used by the Members of SIX x-clear and participants of SIX SIS.

Investment Rules

SIX x-clear and SIX SIS shall:

  • only hold cash or invest in highly liquid financial instruments with minimal market, credit and liquidity risk under consideration of the incurred costs and returns;
  • deposit funds either at the Swiss National Bank (CHF) or at commercial banks for which minimum rating criteria and limits apply;
  • make use of the custodian network of SIX SIS, which fulfills the highest standards in respect of custodian selection and counterparty requirements;
  • minimize risk from foreign currency positions;
  • give secured arrangements preference over unsecured deposits.

SIX x-clear will only enter into and maintain direct relationships with custodians if this is permitted under law and by the relevant authorities.

In order to avoid credit risk and preserve current and future values, SIX x-clear and SIX SIS are restricted in their investments in financial instruments:

  • to high-quality counterparties with a minimum rating of AA- (as provided by Standard & Poor’s or the equivalent of any other major rating firm);
  • by the application of concentration limits and minimum issue size, duration and issuer domicile criteria;
  • by the limitation of their investment universe to securities eligible for transactions in repurchase agreements with central banks (to ensure short-term liquidity provision), whereby such an investment universe excludes securities issued by SIX SIS participants and SIX x-clear Members.

European Code of Conduct on Clearing and Settlement

The European Code of Conduct on Clearing and Settlement is a voluntary self-regulation of the European stock exchanges, settlement agencies and central securities depositories (CSDs).

It aims at increasing pricing and services transparency and enhancing interoperability between the various platforms.

Major provisions of the European Code of Conduct:

  • Improved pricing transparency
    Prices and services shall become more easily comparable. For this reason, SIX x-clear AG publishes the prices of all its services offered. Detailed information on how to calculate the individual prices is given here.
  • Access and interoperability
    The provisions of the European Code of Conduct aim at granting open access to settlement agencies and CSDs in the domains of clearing and settlement in order to facilitate cross-border securities trading.
  • Service unbundling and accounting separation
    Service unbundling enables clients to buy exclusively the services they really need. Accounting separation should enhance disclosure of proceeds and costs of the various services and consequently cross-subsidisation, if any, to national regulators.

SIX x-clear AG, too, has signed the European Code of Conduct and will ensure implementation of the measures mentioned above.

Annual Reports

SIX covers the post-trade business field through its operational subsidiary SIX SIS AG.