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Benefits of Clearing

The clearing procedure and the involvement of a central counterparty offer the following advantages to participants on the SIX Swiss Exchange:

  • Post-trade anonymity
    Counterparty anonymity is guaranteed in the case of Swiss blue chip trades.

    In the case of small or mid-cap and bond transactions, the identity of participants on the SIX Swiss Exchange is, however, disclosed. This does not alter the contractual nature of trades that have already been executed.

    This change to the traditional, anonymous CCP model facilitates the efficient execution of large trades in less liquid securities.

  • Risk management
    A central counterparty is interposed between every buyer and seller, thus minimising counterparty risk for participants and simplifying risk management.

    The CCP takes a range of measures to mitigate risk for participants, including:
    • Risk-based margining
    • Default funds
    • Insurance to protect itself and the market from default on the part of participants

  • Settlement netting
    The CCP is the single counterparty for every participant, enabling them to net trades with multiple trading counterparties in any one security with only one settlement per day.

    For the participant, this has financial benefits:
    • Restriction in the number of settlements, hence a reduction in settlement costs
    • Reduction in back-office overhead
    • Decrease in operational and counterparty default risk


    The delivery versus payment principle continues to apply, since netting is on a multilateral basis against the central counterparty.