Advanced Settlement – freeing banks to focus on their core business strategies


The Swiss financial center is one of the most competitive financial centers in the world. Faced with increasing compliance costs, a range of legacy systems and heavily staffed commoditized services in their portfolios, Switzerland’s banks are confronting the challenge head on by examining what they can do to free up resources and ‘corporate bandwidth’ to focus on the strategic high-value, high return, services that will enable them to build a sustainable future. The new range of Advanced Services from SIX Securities Services have been scoped to address these very real – and immediate – needs.

In May 2017, as the first in a suite of services, we launched our Advanced Settlement offering. A first for the post-trade industry, Advanced Settlement lets us take over a client’s entire settlement work-flow to maximise their efficiency and profitability, while reducing costs and risks. This enables clients to free up resources and focus on core revenue and growth.

Working closely with Bank Vontobel – an existing SIX Securities Services client – we were able, over the past two years, to build an entirely new settlement capability completely separate from, but compatible with, our conventional settlement system.

Since May, Vontobel has been using this newly developed, fully integrated service to process its settlement instructions directly after the trade via a single interface. The processing is real-time, resulting in enhanced Straight Through Processing (STP) rates as well as boosting efficiency and minimising risk throughout the entire settlement process.

Another important aspect to note is that moving forwards, Standard Settlement Instructions (SSIs) will be directly and comprehensively generated by us, and managed via a central database. In the past, SSIs were collected and managed in a decentralized way by each individual bank– a time consuming activity resulting in significant market-wide inefficiencies.

We are extremely proud to be offering this innovative solution to our clients, and the wider market, as we endeavour to service their changing needs in a climate of rising cost and regulatory pressure. We sincerely believe that our Advanced Settlement service will allow organisations to focus on their core business, enabling them to build on their competitive advantage – Vontobel is a clear example of how this works in reality.