A seal of approval that stands for the quality of structured products
As one of the most significant stock exchanges in Europe, SIX Swiss Exchange, with its targeted measures and outstanding services, sets quality standards for safety and transparency on the behalf of investors in Switzerland. With its seal of approval, SIX Swiss Exchange offers the structured products market an identifier for those exchange-listed products that meet investors’ justifiable claim with regard to quality, security and credibility – because successful investing requires not only sound understanding and a clear-cut view of the market, but also favorable trading conditions and a solid basis for decision-making.
This seal of approval is protected under trademark law and may be used by issuers and partners only with SIX Swiss Exchange‘s consent.
Trading over the exchange
Unbiased trading surveillance
The trading of structured products on SIX Swiss Exchange is subject to stringent rules that ensure fair and transparent conditions for each and every market participant. Compliance with these trading rules is monitored by the Surveillance and Enforcement unit of SIX Swiss Exchange. Regulated trading ensures the equal treatment of issuers as well as private and institutional investors.
Speed of execution
Buy and sell orders that lead to a transaction are executed within factions of seconds. Thanks to this enormous speed of execution, investors can also pursue dynamic investment strategies and respond to the latest market developments in a matter of seconds.
Automated clearing and settlement
All on order book transactions (trades) are automatically cleared and settled in a standardized manner via the trading platform of SIX Swiss Exchange. This means that, once a match has taken place, the payment procedure and exchange of securities is triggered in an automated step-by-step process (delivery versus payment).
In contrast to OTC-based trades, which are mainly characterized by the large amount of money involved in the transaction, over the exchange it is possible to also conduct small-sized trades. Thus the trading of structured products via SIX Swiss Exchange is also suited to those investors who prefer to deploy lesser amounts of money. On the website, investors can find monthly overviews of turnover and trades as well as daily lists of the most actively traded products, which are published on the main page of the Website.
Unhindered competition acts as a protective mechanism for investors. The large number of tradable products on SIX Swiss Exchange results in price competition between the banks, which try to offer their products at the best possible price conditions. This enables investors to choose from a wide range of essentially identical products and opt for those that attract them the most and trade at the narrowest spreads.
Broader distribution channel
By choosing to distribute their products by means of exchange trading, issuers reach a much larger pool of potential investors. Thus through their innovative products and attractive pricing, they can broaden their client segments in a targeted manner.
Automated clearing and settlement platform
Compared to distribution via the OTC market, the standardized procedure for on-exchange trading means that issuers can bring their structured products to market quickly and efficiently. Thanks to the launch of Connexor Distribution (once IBT), newly registered structured products can provisionally be admitted to trading already one day after registration. This allows issuers to respond rapidly to current trends and events and to list the corresponding products in a timely manner.
Opportunity for differentiation
Choosing on-exchange trading affords issuers the opportunity to differentiate their products from others on the market. For example, issuers with a strong presence in the futures markets are able to offer a particularly wide range of commodity-based structured products at favorable conditions for investors. By the same token, issuers that are heavily involved in the foreign exchange markets can offer products that have exchange rates as their underlying instrument.