SIX Launches Advanced Settlement After Vontobel Pilot
New system will centralize the generation and management of settlement instructions.
SIX Securities Services has announced the launch of a new service designed to streamline settlement processes, following a successful pilot with a Swiss private bank.
Advanced Settlement, launched on June 19, will enable standard settlement instructions (SSIs) to be created by the firm and managed from a central database. SIX says the firm will allow SSIs to be managed on a fully automated, real-time basis, giving clients a straight-through processing chain as opposed to the previous, manual method of generating and handling instructions.
“In the past, SSIs were collected and managed in a decentralized way by each bank individually,” says Jürg Schneider, a SIX Group spokesperson. “With Advanced Settlement SIX Securities Services takes over the entire settlement workflow. In addition to the SSIs, SIX Securities Services holds a comprehensive database of contact information enabling it to respond quickly and accurately to exceptions.”
SSIs are settlement documents between counterparties where the key principal information on each side of the trade, such as the legal name and bank account details, remains the same, while dates and transaction amounts vary.
“In order to determine the best interface, the client’s current connectivity is evaluated on a case-by-case basis,” says Schneider. “Options may differ according to client’s needs, volume and existing infrastructure. A custody agnostic solution based on alternative communication channels is being looked at this very moment.”
The release comes after a pilot with Swiss private bank and asset manager Vontobel, which holds around SFr195 billion ($200 billion) in client assets. Peter Camenzind, head of transaction banking at Vontobel, said in a statement that using the platform allows the firm to “reduce operational risks and complexity in securities settlement for the whole market.”
Vontobel has been using the system since May 16, according to SIX. “Vontobel was highly involved in requirement engineering,” says Schnieder. “In addition, two employees from SIX worked onsite at Vontobel to define and implement the required process technology sequences.The pilot client setup for the next product phase is currently under development.”
Correction: This story was updated on June 20 to reflect additional comment from SIX Group and to correct the spelling of Peter Camenzind’s name.
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