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The cooperation agreements include the following key points:
Tradepoint is to be renamed virt-x;
SWX will transfer its blue-chip trading activities to the virt-x platform;
virt-x will utilise the EBS System that was developed by the SWX Swiss Exchange. SWX shall provide the technical infrastructure (EBS) for the virt-x trading platform and operate it on behalf of the new exchange. virt-x shall contribute a minimum of £9 million (CHF 22.5 million) annually towards the continuing development of EBS trading software.
virt-x will increase its capital through the issuance of 108'445'243 shares with a market value of approximately £130 million (CHF 330 million) in favour of the SWX Swiss Exchange. As a result, SWX shall obtain a 38.9% holding in virt-x.
The Tradepoint consortium will exercise existing options that will result in Tradepoint's capital being increased by a further £15.26 million (CHF 38 million). Following this transaction, the consortium will also hold a 38.9% interest in virt-x. All other shares will be in public hands.
The members of the consortium shall make available to virt-x non-refundable loans totalling £15 million (CHF 37.5 million), an amount that can be individually offset against future trading fees due.
The following individuals have been proposed as members of the virt-x board of directors:
Peter Stevens (Chairman)
Duncan Paterson (Vice Chairman)
Richard Kilsby (Vice Chairman)
Antoinette Hunziker-Ebneter (CEO)
Dr. Jörg Fischer, Vontobel Holding / Chairman of SWX Swiss Exchange
Walter Berchtold, CSFB
Alan Hodson, UBS Warburg
Sutesh Sharma, Morgan Stanley Dean Witter
Jacques de Saussure, Pictet & Cie.
Doug Atkin, Instinet
Prof. Dr. Peter Nobel, Zurich
Prof. Dr. Ben Steil, New York
First pan-European stock exchange
virt-x represents a milestone in international blue-chip trading. It is the first pan-European stock exchange with realistic prospects of enjoying sufficient liquidity. Standing behind virt-x are the 11 largest investment-banking firms in the world. These companies will combine technologically with the SWX electronic platform to constitute an officially organised securities exchange under British law. Fully automated clearing and settlement, as well as a central counterparty, have been integrated into the virt-x trading platform. All shares that are included in Europe's leading stock indices can be traded on this new exchange. These European blue-chip stocks, more than 600 issues in all, will be tradable in Swiss francs, pounds or euros and will continue to be listed in their respective country of origin. Trading on virt-x will be subject to British supervision, whilst listing will remain within the scope of the responsibility of the relevant home country's authorities; those authorities will also remain responsible for addressing all matters related to disclosure and takeovers. Participants may choose between SIS SegaInterSettle, Crest and Euroclear for settlement purposes. virt-x fulfils the needs of market participants for a cost-effective, efficient and fully integrated real-time securities trading system. This revolutionary pan-European blue-chip exchange will go online at the end of the first quarter of 2001.
