January 2024
The Swiss Finance Council has a strong interest in the discussion on shortening the settlement cycle to T+1 across equities, fixed income and ETFs in Europe because Swiss, EU and UK securities markets are closely interconnected and in the post-trade area apply the same principles and technical standards. This is a complex area that will require careful analysis and policy development to assist firms in managing the significant operational challenges that will stem from the transition.
A guiding principle in a European transition (including Switzerland, the EU and UK) should be to manage market impact and disruption. A starting point for this must be that the European transition is closely coordinated between neighbouring jurisdictions with interconnected financial markets. Failing to agree this would introduce significant and unnecessary complexity and undermine a smooth transition. At the minimum, coordination should involve transitioning on the same date, but we would strongly recommend the establishment of a formal forum/dialogue that seeks align to processes and anticipate issues that may arise between jurisdictions.
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