The rules of corporate governance – i.e. the structures of organization and the principles for management and monitoring – are aimed at ensuring SIX x-clear’s role as an international central counterparty.
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Clearing is effected after a trade has been executed (matching) and before it is settled. The purpose of clearing is to efficiently handle the risks inherent in trading contracts that have been executed but are still unsettled. The central counterparty steps into the contracts as an intermediary and represents the buyer with respect to each seller and vice versa.
Founded as the central counterparty (CCP) for the Swiss market in 2003, SIX x-clear Ltd today clears multiple instruments in most European markets – and has been at the forefront of interoperability and competition since its creation.
As a CCP, SIX x-clear Ltd undertakes the following principle tasks:
Today, our clearing services span multiple exchanges and trading venues, including SIX Swiss Exchange Ltd, the London Stock Exchange, Bats Europe, Equiduct, Liquidnet, and UBS MTF. More are in the pipeline for interoperable clearing.
While we have maintained a strong focus on cash products, asset classes now also cover exchange-traded derivatives and fixed income.
SIX x-clear Ltd is a Financial Market Infrastructure (FMI) according to the Swiss Financial Market Infrastructure legislation. It is licensed by the Swiss Financial Market Supervisory Authority (FINMA) and is also subject to the oversight of the Swiss National Bank (SNB) as a systemically important FMI. In Switzerland, SIX x-clear Ltd has the status of a licensed bank but will obtain a new special license as an FMI on Q3 2017.
In the European markets SIX x-clear Ltd is admitted to provide its clearing services based on recognition by the European Securities and Markets Authority (in accordance with chapter 4 title III of EMIR). Furthermore, SIX x-clear’s system of payments and securities transfers has been officially designated by the Bank of England as a system under Settlement Finality Regulations.
SIX x-clear Ltd strives to deliver best practice and market solutions; in that context SIX x-clear Ltd is an active member of EACH (European Association of Clearing Houses) and works closely with the industry association AFME (Association for Financial Markets in Europe) and other industry associations.
We are part of SIX, user owned and market driven, and equipped with a strong balance sheet. This strength is reflected in our consistently excellent credit ratings of AA- (S&P). As SIX Securities Services, we are able to offer integrated solutions for clearing, settlement, custody and collateral management.