SIX Swiss Exchange innovates corporate bond trading

SIX Swiss Exchange is to launch an electronic platform for trading corporate bonds intended to lead to more efficient dealing of larger blocks and less liquid issues.

The launch is planned for the first half of 2015 and will help eliminate the disadvantages of inefficient off-exchange trading, the exchange – a part of SIX Group – says.

As well as low liquidity and small trade sizes, these disadvantages also include time-consuming price negotiations and the worry that prices could be negatively impacted by premature disclosure.

Therefore, SIX says, the platform offers an alternative to the highly fragmented bond trading arena, most of which is conducted outside an exchange infrastructure and is therefore inefficient.

SIX defines larges trades as above 2 million euros, pounds or dollars.

The platform will be domiciled in Switzerland and is subject to regulatory supervision by the Swiss Financial Market Supervisory Authority, known as FINMA.

Christian Katz, division chief executive of Swiss Exchange, says: “This not only lowers transaction costs but also improves risk management.”

Algomi was selected as the technology partner.

©2015 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST