Settlement

The SWX Swiss Exchange's integrated settlement solution is based on the co-operation of three Central Securities Depositories (CSDs) and International Central Securities Depository (ICSD's).

Settlement is the transfer of ownership and exchange of securities generally on a delivery versus payment (DvP) basis which leads to settlement finality of a trade and is usually supported by a "CSD" or International Central Securities Depository (ICSD).

Locked-in trades

The great advantage of the locked-in trade procedure is that settlement is fully automated and that errors from the re-entry of data can be avoided completely. This is because no extra matching is necessary for settlement as all necessary information is already available when the trade is executed.

To facilitate locked-in settlement a power of attorney (POA) is required. For SIS a power of attorney is included within the general conditions. To enable the SWX Swiss Exchange to arrange settlement in Euroclear and Cleastream Luxembourg members must complete the applicable POA's.