SWX’s Quotematch programme will deliver a new trading system capability with significantly enhanced capacity to enable high performance trading of quote-driven securities, such as Warrants, Bonds and Exchange Traded Funds.
The Quotematch capability will be delivered in partnership with Computershare and will be based on its X-stream platform, which is widely used across the globe.
Laboratory tests conducted by SWX and Computershare demonstrate that Quotematch will deliver an order of magnitude improvement in quoting performance from that available today.
Computershare X-stream was chosen for its ability to deliver well in excess of the required quoting performance on a proven technology platform. X-stream also provides a low-risk implementation and an assured time-to-market for the Quotematch project due to its extensive existing business functionality and its strong fit with the Quotematch requirements.
Quotematch will continue to uphold the core principles of the SWX and virt-x market models, allowing market makers to easily maintain their quotes and provide fast access to price takers via existing SWX interfaces.
Accordingly, Quotematch will be linked to the current SWX Platform, which remains a comprehensive value proposition for trading order-driven product segments such as the SMI and other equities as well as Government and CHF denominated bonds. Quotematch will not materially affect members trading in these products and the SWX Platform will continue to be developed.
The roll-out of the Quotematch programme will happen in several stages scheduled throughout the second half of 2005. Once live, it will be operated by SWX.
Reaffirming its commitment to the highest service levels, SWX and virt-x will also integrate the SMARTS product, an off-the-shelf system providing real-time supervision and surveillance for markets supported by both Quotematch and the SWX Platform.
Following a rigorous and systematic evaluation process SWX identified SMARTS as the best available product to ensure the integrity of its marketplace. SMARTS was also chosen because of its high analytical capabilities which offers SWX the ability to evaluate the impact of changes in its marketplace on both efficiency and integrity.
Commenting on the Quotematch Programme, Jürg Spillmann, Head of the SWX Group Executive Committee, said: “When Quotematch is complete, SWX will have a market model with technical advantage over our competitors and we can seek to further grow market share and revenues, especially in the warrants market. Furthermore, SWX can continue to develop new business and our future direction can be planned on the basis of a revitalised development capability.
We are delighted to be working with Computershare and SMARTS as they best position us to meet our objectives and particularly time-to-market and delivery of performance at the lowest risk and cost. We are convinced that this massive extension of trading capacities is a winning proposition for all stakeholders“.
Commenting on the engagement of Computershare, Stuart Crosby Chairman of Computershare Markets Technology said: “We are extremely pleased to be selected by such a prestigious organisation as the SWX. The decision endorses our belief that X-stream is the leading automated trading technology in the world.
“The long term relationship we are entering into with the SWX is proof of our strong commitment to the Markets Technology business and adds a very high profile organisation to our already extensive client base.”
Commenting on the engagement of SMARTS, Professor Michael Aitken, Director of SMARTS, said: "We welcome the decision of SWX both in terms of its commitment to market integrity and its commitment to the SMARTS product in particular for this purpose. By choosing SMARTS, SWX and virtx become part of an informal global alliance of 16 exchanges and regulators who use the SMARTS system.
Going forward, this offers the possibility of inter-market cooperation at a technological level significantly enhancing market collaboration. It is also pleasing that SWX have recognized the significant R and D component in SMARTS provided by SMARTS' collaboration with the world's largest research centre devoted exclusively to market surveillance, the Capital Markets Cooperative Research Centre. Aside from providing leading edge technology, this centre identifies and trains people to provide a market surveillance solution well beyond the supply of leading edge technology".
