The applicable rules and regulations
allow SIX Swiss Exchange to forward automated settlement instructions in the form of locked-in trades
to a recognised central counterparty (CCP, a Central Securities Depository) or an international
central securities depository (ICSD).
What are the advantages of locked-in trades?
The great advantage of locked-in trades is that
clearing and settlement is
fully automated and that errors from the re-entry of data can be avoided completely. No extra
matching is necessary for settlement as all the necessary information is already
available when a stock exchange transaction is executed.
To enable SIX Swiss Exchange to deliver this service at the international central
securities depositoriesEuroclear Bank and
Clearstream Luxembourg, participants must fill
out the relevant powers of attorney.
Settlement at Euroclear Bank and Clearstream Luxembourg is only possible for international bonds.