MARKET INFRASTRUCTURE

SIX targets cost and risk reduction with Advanced Settlement launch

SIX Securities Services is launching its Advanced Settlement process in a bid to reduce the risk and costs of the settlement process.

By Paul Walsh paul.walsh@strategic-i.com June 19, 2017 9:54 AM GMT
SIX Securities Services has launched its Advanced Settlement service enabling financial institutions to process settlement instructions directly from the trading system.

Through Advanced Settlement, SIX said it has introduced a centralised, integrated and automated offering which aims to boost efficiency and minimise risks of the settlement process for clients.

A key part of the new offering will see standard settlement instructions being automatically generated by SIX Securities Services and managed via a central database.

“The changes underway in the financial sector are giving rise to fundamental challenges for our clients,” said Valerio Roncone, head of markets and clients at SIX Securities Services.

The first client for this system, Swiss-based Vontobel, has been using the system since 16 May.

“With Advanced Settlement, we can reduce operational risks and complexity in securities settlement for the whole market,” said Peter Camenzind, head of transaction banking at Vontobel.

The move is the latest development for SIX’s settlement offerings following its development of a blockchain powered service covering the full bond trading life cycle from issuance to settlement earlier this year.