Commentaries: Art. 34

The operator shall identify, measure, manage and monitor risks arising from links to other financial market infrastructures.
If a central securities depository establishes a link with another central securities depository:
1. the central securities depository shall use appropriate collateralisation measures to cover, with a high confidence level, the credit risk arising out of the granting of credit to the other central securities depository;
2. the central securities depository shall permit the re-use of securities provisionally received from the other central securities depository only after the original transfer is unconditional and irrevocable;
3. the central securities depository shall, in the case of indirect links, identify, measure, manage and monitor the risks arising due to intermediary financial institutions.
4. the central securities depository shall, on a daily basis, match the holdings in its sub-custody with those it holds at other central securities depositories and custodians;
5. the central securities depository shall make the settlement of transactions between the participants of linked central securities depositories possible on a «delivery versus payment» basis where practicable.¹
If a central counterparty enters into a link with another central counterparty, it shall cover the resulting current and potential credit exposure with a high confidence level through the collection of collateral as specified in Article 28a from the other central counterparty.

Amended by No I of the SNB O of 26 Nov. 2015, in force since 1 Jan. 2016 (AS 2015 5307). ↩

Art. 34