Monitoring and Regulation

The smooth handling of payments and securities is fundamental to the Swiss economy. Disruptions may lead to severe credit and liquidity problems and jeopardize the stability of the financial system. Therefore, the Swiss National Bank monitors all systemically important legal entities of SIX:

All entities of SIX that are engaged in securities trading and securities settlement are subject to the direct supervision of FINMA.

SIX x-clear is licensed by the Swiss Financial Market Supervisory Authority (FINMA) as a central counterparty according to the Swiss Financial Market Infrastructure Act (FMIA). SIX SIS possesses a license as central security depository under FMIA.

On the basis of the self-regulatory mandate prescribed under the Stock Exchange Act, SIX performs regulatory functions in stock market trading and the admission of securities as well as associated follow-up obligations.

The Exchange Regulation entity is segregated from the operational business of SIX and reports directly to the Chairman of the Board of Directors of SIX. Exchange Regulation is responsible for implementing and enforcing the rules. Surveillance & Enforcement supervises participants and traders, while Listing & Enforcement supervises issuers.

The Regulatory Board is responsible for setting regulations. Sanctions and decisions are issued by the Sanction Commission, the independent Appeals Board and the Board of Arbitration. Sanctions notices are issued by Exchange Regulation. The areas responsible for setting regulations, applying regulations and passing judgment on them have equal powers.

The legal framework is provided by the Federal Act on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading (FinMIA). Ultimate supervisory authority lies with the Swiss Financial Market Supervisory Authority (FINMA).