Embracing Competition

The 19-month period during which the Swiss Stock Exchange was not allowed to demonstrate the quality of its order books in direct comparison with other venues has at least presented it with a unique opportunity to assess the effects of liquidity consolidation during a time of unprecedented trading volumes.

Embracing Competition
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On 3 February 2021, trading in Swiss equities outside of Switzerland was resumed in the UK. It marked the end of a 19-month period of forced isolation during which the Swiss Stock Exchange saw its market share raise to over 99%.

A new article “Citius, Altius, Fortius” (first published in the Global Trading Journal) by Adam Matuszewski, Head Equity Products at the Swiss Stock Exchange, looks back at this extraordinary period of being caught in a political row in the midst of a global pandemic. He explains how the Swiss Stock Exchange successfully managed these historic challenges, organizing an orderly functioning market, proving its resilience and demonstrating its competitive and innovative nature, eagerly preparing for the moment competition would be reinstated.

Christian Reuss, Head SIX Swiss Exchange

I'm confident that our lit and non-displayed books will remain the most attractive options to trade Swiss shares.

Adam Matuszewski, Head Equity Products

Innovating to Make Trading More Efficient
The article presents an overview of the many new services that were introduced to better meet clients’ needs and make trading on the Swiss Stock Exchange more efficient, such as “Swiss EBBO” and “Trading-At-Last” (TAL) for Equities, “Quote on Demand” (QOD) for ETFs and the “Price Validation Market Model” (PVM) for structured products.

A Unique Opportunity to Assess The Effects of Liquidity Consolidation
When trading volumes in Swiss shares started to concentrate in Switzerland, some concerns were raised. Would overall volumes decline? Would spreads widen? Would implicit trading costs go up? These and more questions are analyzed and answered in the article, as the unique circumstances in trading Swiss Equities over the past 19 months allowed to draw some revealing conclusions.

The Home of Swiss Liquidity
Switzerland is home to an attractive share universe of over 250 companies, including three of the five biggest in Europe. As their reference market, the Swiss Stock Exchange consistently offers the best prices and the narrowest spreads in combination with the largest volumes.

In a video, three trading participants explain what they appreciate about the Swiss Stock Exchange and how this has manifested itself in an exceptional stock market year 2020. Discover all the numerous advantages of a direct exchange membership. Read more and watch the video.

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