In a significant industry innovation, SIX Securities Services, the Swiss post-trade market infrastructure today announced the world’s first Delivery versus Payment (DvP) settlement capability against gold.
SIX Securities Services has successfully settled a number of transactions against gold with pilot clients.
The SIX Securities Services settlement team significantly reduced time-to-market for this product by treating gold as a settlement currency as well as a foreign currency (XAU).
The value of one XAU unit is defined as one troy ounce of gold valued in US dollars.
Clients wishing to settle transactions against gold will need to have an XAU account with SIX Securities Services (through its CSD – SIX SIS Ltd) and they need to ensure that their account is adequately funded – as would be the case with any other currency.
Based on this innovation, SIX Swiss Exchange and Scoach Switzerland are planning to introduce the listing and trading of structured products denominated in XAU in October.
Commenting on the news, Thomas Zeeb, CEO SIX Securities Services explained, “To create true value through innovation in today’s economic climate is a real challenge – for any organization. This is why I am particularly proud of this achievement. It has taken close collaboration with market participants and a truly innovative approach from SIX Securities Services. I look forward to more such fruitful collaborations with all of our customers as we drive the product development process forward with and on behalf of our clients.”
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