Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 6

Convergence of Securities Systems, both within countries and across borders, should be encouraged where this eliminates operational risk, reduces cost and enhances market efficiency.

1.	Is the depository linked electronically and in real time with other segments of the core market infrastructure (e.g. trading platforms, netting systems, matching platforms, payment systems)?	Yes. The Swiss financial market is one of the world's most advanced in terms of electronic integration; it electronically links a fully automated trading system (EBS) to SIS's settlement facilities (SECOM) and to the Swiss National Bank's payment system (SIC). All these systems operate in real time. The data provider Telekurs is also part of that network.
2.	Is there one or more depository or settlement system in the market?	SIS is the only depository and settlement system in Switzerland.
3.	If there are several, has a consolidation been considered? If yes, by when?	Not applicable.
4.	Does (do) the securities system(s) allow other domestic or foreign systems to establish direct links on an equal basis to local members?	SIS has direct links to CREST, Monte Titoli, Clearstream Luxembourg and Frankfurt, and others. The relationship to these foreign systems is on an equal basis with the ones to local members.
5.	Does (do) the securities system(s) allow foreign market participants to become direct participants?	Foreign participants may be natural persons or legal entities commercially active in securities trading or settlement for third parties, such as: foreign banks or foreign securities traders that are subject to the same degree of regulation and supervision as banks in Switzerland; other organizations active in the settlement, safekeeping or booking of securities, in particular stock exchanges and nominee companies.