Microwave Technology: Greater Access to Market Data

A new company – RF Nordic Express AB – jointly owned by SIX and Nasdaq will build and operate microwave routes from Stockholm to London, fostering equal access to the most modern market data transmission technology.

Microwave technology enables the fastest transmission of market data. This allows trading participants to identify price movements and implement investment decisions as quickly as possible. As a result, risks can be managed more efficiently which benefits participants and end investors alike. It also improves liquidity and tightens spreads, which results in better execution for everybody trading Swiss securities on the Swiss Stock Exchange.

The existing network already allows all trading participants of the Swiss Stock Exchange to benefit from low-latency market data transmission from Zurich to London, Frankfurt and Milan as well as from Milan to Frankfurt and London. Equal access is ensured at both regulatory and technical levels.

Leveraging the most advanced technology
As a key pillar of the Swiss financial sector's infrastructure, the Swiss Stock Exchange has a long tradition of moving the industry forward and has repeatedly taken a pioneering role in the development of electronic trading. In December 1995, it became the world’s first stock exchange to switch from floor trading to electronic trading with fully integrated transaction processing and settlement. This created the unique end-to-end Swiss Value Chain which SIX currently aims to replicate in the digital space by building the SIX Digital Exchange (“SDX”) ecosystem.

Nasdaq and the Swiss Stock Exchange have been technology partners since 2005, marked by the introduction of the fully integrated trading platform SWXess in 2009 and the first implementation of the X-stream INET technology in 2012.

The largest microwave network in Europe
In December 2017, the Swiss Stock Exchange first announced its joint venture with 12Horizons Pte Ltd, to create 12H AG to provide low-latency access for Swiss securities trading via microwave technology. Compared to fibre technology, it facilitates a significant faster transmission of market data. With the launch of 12H AG in May 2018, SIX became the first exchange operator worldwide to own and operate an international microwave network in Europe. Having taken a majority stake in 12H AG – the operator of its microwave network – earlier in 2020, SIX now owns and operates the largest microwave network in Europe.

The Swiss Stock Exchange is committed to cater to the needs of its clients looking for low-latency solutions and to provide a single source for the best low-latency services from and to Zurich. It is one of Europe's key stock exchanges and is the reference market for Swiss securities. In January 2020, at the prestigious SRP Europe awards in London, the Swiss Stock Exchange won the award for Best Structured Products and Derivatives Exchange.

Open markets to weather the storm
In March 2020, the Corona crisis created unprecedented market turmoil and the Swiss Stock Exchange saw several new records being established. This interview provides detailed figures and more background how the Swiss Stock Exchange continued to ensure fair and orderly trading despite these extraordinary circumstances, enabling investors to adjust and implement their investment decisions at all times.