SIX Swiss Exchange AG will reunify share trading in Zurich by mid-2009, thereby achieving a harmonised regulatory environment for all Swiss stocks. This measure is advantageous for issuers and simplifies trading conditions for market participants. Additionally, it enhances the efficiency of the Exchange.
As a part of the further evolution of its strategy, SIX Group AG has resolved to concentrate Swiss share trading solely in Zurich.
Consequently, trading in the 32 Swiss blue chip stocks (i.e. the shares included in the Swiss Market Index and Swiss Leader Index), which today is conducted on SWX Europe in London, will be relocated to SIX Swiss Exchange in Zurich. Thus as of mid-2009, SMI®/SLI® trading will be subject only to Swiss regulation and surveillance. This repatriation of blue chip trading will enable the Exchange to operate more efficiently and achieve substantial cost savings. In order to serve customers in London closely even after the transition, a qualified team (representative office) will remain in the City to assess market developments and customer needs. The objective of this move is to solidify the Exchange’s already sizeable share of the market for trading in Swiss equities, as well as to offer need-consistent services at competitive prices also within the framework of the new structure.
Simplification for market participants and issuers
For trading participants, the strategic reorientation simplifies their activities both from an administrative and technical standpoint. This transfer will not affect the trading systems and no participant-side changes or adjustments are necessary. The ongoing project aimed at modernising the entire trading system will proceed according to plan.
Issuers whose securities are admitted to trading in the EU-regulated segment of SWX Europe will no longer have to take into account the rules and regulations of Great Britain and the EU as well as those stipulated under Swiss law. The reorientation will reduce the complexity of the current structure because the supervisory requirements of two jurisdictions will no longer have to be fulfilled cumulatively. This simplification will create regulatory certainty and corresponds to a frequently expressed need of issuers.
Reinforcing the Exchange and the entire Swiss financial centre
SIX Swiss Exchange is one of Europe’s leading securities exchanges. As the reference market for Swiss equities, SIX Swiss Exchange represents the largest pool of liquidity for Swiss blue chip stocks – close to 150 banks and securities dealers participate in trading on SIX, including the largest and most important players from Germany, France and Great Britain. It is the declared goal of SIX Swiss Exchange to expand its customer base even further in the coming years in order to preserve its already large share of the market.
With this strategic reorientation, SIX Swiss Exchange is on one hand taking into account the changed competitive environment and, on the other, streamlining its operations and lowering costs substantially, thereby enhancing its competitiveness, reinforcing its role as an international securities exchange, and strengthening the Swiss financial centre.