SIX x-clear, the CCP subsidiary of SIX Securities Services, will introduce a daily late settlement fee of CHF 20 per settlement and per day for all applicable equity trading venues as part of the introduction of the regulation of short selling in the European Union on Nov. 1 2012.
The CCP said in a clearing notice that it supports efforts towards harmonization in the European Union and will implement equivalent regulations based on the international orientation of the clearing business.
The late settlement fee will apply to all equity trading venues in which SIX x-clear operates as CCP: SIX Swiss Exchange, London Stock Exchange, BATS Chi-X Europe, Burgundy, Equiduct, GETCO Execution Services, Liquidnet, Turquoise, UBS MTF and any relevant future trading venue.
The buy-in periods for all markets in the EU, Norway and Switzerland (ISD+4 Notification; ISD +5 Execution Buy-In) will also be harmonized under the regulations and SIX x-clear will also introduce an administrative buy-in fee of CHF 150 per settlement.
The minimization of short sales from will increase settlement efficiency and minimize systematic risk, said SIX x-clear. It will also lead to the harmonization of buy-in periods, allowing or a further reduction in complexity and simplification in the post-trading sector, it added.