If a buyer and seller agree, to which entity is the transaction automatically forwarded for settlement?

If a buyer and seller agree, to which entity is the transaction automatically forwarded for settlement?

• A. SIX x-clear Ltd
• B. LCH.Clearnet
• C. SIX Exfeed Ltd
• D. SIX Securities Services

Answer: (D)

In SIX markets, the settlement of a traded security is handled by the post-trade settlement entity within SIX Securities Services. When a buyer and seller agree on a trade, the system automatically routes the completed obligation to SIX Securities Services, which settles the transaction through the central depository (SIS). This ensures the buyer receives the securities and the seller receives payment. The clearing function is performed by SIX x-clear Ltd, but the actual settlement is carried out by SIX Securities Services. The other options don’t handle Swiss settlement: LCH.Clearnet is a non-Swiss clearing house, SIX Exfeed Ltd provides market data, and SIX x-clear handles clearing rather than the final settlement.

In SIX markets, the settlement of a traded security is handled by the post-trade settlement entity within SIX Securities Services. When a buyer and seller agree on a trade, the system automatically routes the completed obligation to SIX Securities Services, which settles the transaction through the central depository (SIS). This ensures the buyer receives the securities and the seller receives payment. The clearing function is performed by SIX x-clear Ltd, but the actual settlement is carried out by SIX Securities Services. The other options don’t handle Swiss settlement: LCH.Clearnet is a non-Swiss clearing house, SIX Exfeed Ltd provides market data, and SIX x-clear handles clearing rather than the final settlement.