The Swiss Securities Post-Trade Council (swissSPTC) has recommended a move to T+1 in October 2027 in line with the EU’s ambitions, and likely the UK.
The recommendation is that the transition to a T+1 Settlement Cycle for the domestic markets in Switzerland and Liechtenstein should occur in October 2027.
In a statement from swissSPTC the council said: “It is assumed that the EU and UK will adopt the same migration date as a combined migration of CH/FL, EU and UK.
“This is the preferred solution of the swissSPTC and in the interests of the markets and users concerned. In the event of a delay in one jurisdiction, domestic markets will seek to align their timeline with the ‘first mover’, provided the migration occurs no earlier than October 2027.”
Swiss exchange SIX has also acknowledged the recommendation and will commence the process of seeking approval to adjust the Rule Book of SIX Swiss Exchange to accommodate the change of the settlement cycle at the appropriate time.
The swissSPTC Task Force T+1 will now commence detailed assessments on specific proposals and produce recommendations for the transition.
European regulators announced in November that it would prepare for a move to T+1 in the EU by Q4 2027 – in line with the UK.
Published in the watchdog’s final T+1 recommendations, ESMA recommended that the migration to T+1 occurs simultaneously across all relevant instruments – with a coordinated approach across the continent “desirable”.
Simon Belser, head of international custody at SIX, highlighted that this recommendation marks a “significant step forward,” adding: “The biggest challenge for Europe in making a smooth transition to a shorter settlement cycle was the costly scenario of misalignment between the EU, UK, and Switzerland. With a joint October 2027 transition now looking more certain, SIX, as the main market infrastructure operator in Switzerland, will work together with the Swiss market to ensure all market participants are prepared.”
Belser also confirmed that from now, SIX is set to begin the approval process in order to amend SIX Swiss Exchange’s ‘rule book’ “to accommodate the change in the settlement cycle at the appropriate time”.