Switzerland is set to implement T+1 settlement for share and securities trading in October 2027. This change follows the USA’s adoption of the same standard in May 2024, aiming to enhance market efficiency and reduce risks.
The Swiss Securities Post-Trade Council has proposed this timeline, which has been confirmed by the State Secretariat for International Financial Matters. The exchange operator SIX is currently preparing to adjust trading regulations to facilitate this transition.
The shift to T+1 will:
- Shorten the settlement period from two days to one.
- Reduce risks associated with fluctuating market conditions.
- Decrease counterparty risk.
- Facilitate faster access to capital.
- Promote modernization within the industry’s infrastructure.
There is an expectation that the EU and UK will implement the same change on the same date, ensuring a coordinated transition across the affected markets. In the event of delays in any market, efforts will be made to synchronize timelines with the first mover.
📎 Related coverage from: finews.ch