ContactContactEnglish
  • Home
  • News
  • Market Data
  • Participants
  • Issuers
  • Investors
  • Education
  • Profile

Cookie notification

Our website uses cookies. This enables us to optimize your user experience. By continuing to use our website, you agree to this. To find out more, please see our Privacy Policy.

 
 
 

Settlement Options for International Bonds

Settlement of international bonds entails a number of possible scenarios which are dependant on the parties involved in the transaction. The following diagram and subsequent explanatory information describe the processing scenarios for locked-in trades:

  • Internal: trade between SIX Securities Services member
    Both parties to the trade keep their inventories with SIX Securities Services. This scenario reflects the automated clearing of a CHF transaction, with the difference that the trade is carried out in the appropriate foreign currency. The parties to the transaction have the option, however, of opening a cash account in the relevant foreign currency at SIX Securities Services or EuroSIC.
  • Cross-border: trade between SIX Securities Services member and routing member
    This scenario applies when one of the two parties keeps its inventory of international bonds with Clearstream Luxembourg or Euroclear Bank.
  • Routing: trade between routing member
    Both parties keep their inventories of international bonds with Clearstream Luxembourg or Euroclear Bank. In this scenario, SIX Securities Services is only involved as a routing agent and not in settlement.

Settlement of Routing Trades

Depending on the settlement location of the counterparties, orders are routed to Euroclear Bank or Clearstream Luxemburg. In general, the settlement instructions are routed automatically to the settlement location in question.

Settlement of cross-border trades

In the case of cross-border trades, settlement instructions are issued fully automated to Euroclear Bank and Clearstream in the early evening on the day before the value date, thus preventing the blocking of positions at SIX Securities Services. On the value date, actual settlement takes place at the relevant ICSD. In the case of trades between SIX Securities Services and Euroclear Bank or Clearstream Luxembourg, the transfer of securities and cash is completely transparent.

It is not necessary to know where the counterparty's securities are located. Each market participant can freely choose the place of settlement as well as the relevant custody account.