SECB Swiss Euro Clearing Bank GmbH

witzerland will, until further notice, not be connected with TARGET, the interlink between the clearing systems of the EMU (European Monetary Union) due to its status as an "out-out" country. It is not a member of the EEMU (European Economic and Monetary Union) nor the EU (European Union). Therefore, the Swiss Bankers Association asked the Telekurs conglomerate to find another solution to provide both an appropriate connection for euroSIC, the clearing system for payments in Euro in Switzerland and across the international borders and to ensure liquidity. As a result, SECB Swiss Euro Clearing Bank GmbH in Frankfurt am Main was founded on February 27, 1998. The founding partners are Telekurs Holding AG (40 %), Credit Suisse Group (30 %) and UBS AG (30 %). On October 1st, the Bundesaufsichtsamt für das Kreditwesen, Berlin, issued a statement granting SECB the "Permission to Execute Banking and Financial Services". Operations began on January 1st, 1999. SECB Swiss Euro Clearing Bank GmbH has been assigned the steering and monitoring of the euroSIC system and has been assigned the responsibility to establish the necessary connections to Euroland. This was accomplished through membership of SECB Swiss Euro Clearing Bank GmbH in the German clearing systems EAF (Euro Access Frankfurt) and ELS (Euro Link System). As a result, the connection to the clearing systems of the other countries in the EMU (European Monetary Union) was established through TARGET. SECB Swiss Euro Clearing Bank GmbH also took on the considerable task of treasury management for the euroSIC system. Within this same context, SECB became the settlement agent for all euroSIC participants. These participants are required to open an EUR giro account with SECB to facilitate treasury management for euroSIC. At the beginning of each clearing day SECB automatically transfers all giro balances of the euroSIC participants into euroSIC. By so doing, euroSIC is guaranteed the required clearing liquidity. During the euroSIC clearing day, any necessary EUR-liquidity adjustments can be executed through SECB. At the end of the euroSIC clearing day SECB orders the transfer of the euroSIC clearing credits to the appropriate SECB EUR giro accounts. SECB Swiss Euro Clearing Bank GmbH provides a liquidity-saving intraday credit facility against collateral deposit of securities corresponding to the eligible assets for ESCB (European System of Central Banks) monetary policy operations. This includes cross-border collateral of government bonds from Germany, France, Austria, Spain, Netherlands and Finland held at national central depositories SECB Swiss Euro Clearing Bank GmbH also offers an overnight credit facility with corresponding conditions. The same securities can be supplied with SECB for collateral as for the intraday credit facility. The interest is tied to the ESCB marginal lending facility. SECB uses the Collateral Management System XEMAC of the Clearstream Banking AG on a daily basis to determine the collateral value of the deposited securities. In addtition to these highly specialized functions in euroSIC, SECB Swiss Euro Clearing Bank GmbH offers the high-quality services of its clearing specialists as European correspondent bank to financial institutions who are not participants in euro-SIC and/or organizations seeking simultaneously a centralized EURO link with all clearing systems of the EMU (European Monetary Union) and practically all Swiss financial institutions (major banks, Cantons‘ banks, Swiss National Bank, Swiss Stock Exchange, RBA, Raiffeisenbanks and Postal finance).

Address: Solmsstrasse 18, 60486 Frankfurt am Main, Germany

Phone: +49 69 9798980
FAX: +49 69 97989898