Government Supervision and Monitoring
Certain areas of SIX are subject to supervision and monitoring by the Swiss Financial Market Supervisory Authority (FINMA) and the Swiss National Bank (SNB).
It is the SNB's duty to promote the stability of the financial system. As part of this remit, the central bank supervises Switzerland's systemically relevant payment and securities settlement systems. Such systems can generate or spread a systemic crisis, which can in turn lead to severe credit and liquidity problems for financial intermediaries or even jeopardize the stability of the financial system as a whole.
The following SIX systems and legal entities are subject to supervision by the Swiss National Bank:
- The SIC (Swiss Interbank Clearing) interbank payment system is the central Swiss payment system used by financial institutions to process large payments and some mass payment transactions in Swiss francs.
- The SECOM (Settlement Communication System) securities settlement system processes and settles both domestic and international securities transactions automatically and at minimum risk.
- SIX x-clear Ltd eliminates any counterparty risk arising in trading transactions on stock exchanges.
The units of SIX that operate in the areas of securities trading and securities settlement are subject to direct institutional supervision by FINMA. SIX SIS Ltd and SIX x-clear Ltd have a banking licence and are therefore required to comply with Swiss banking regulations.