Monitoring by the Swiss National Bank (SNB)
The smooth handling of payments and securities is fundamental to the Swiss economy. Disruptions may lead to severe credit and liquidity problems and jeopardize the stability of the financial system. Therefore, the Swiss National Bank monitors all systemically important legal entities of SIX:
SIC (Swiss Interbank Clearing)
Financial institutions use the interbank payments system to clear all payments of large amounts and some of their retail payments in Swiss francs.
SECOM (Settlement Communication System)
This electronic, automated system processes national and international securities transactions in a fully automated fashion and in a way that minimizes risk.
SIX x-clear Ltd
This legal entity of SIX acts as the central counterparty for trades on the stock exchange and thereby reduces counterparty risk.
Supervision by the Swiss Financial Market Supervisory Authority (FINMA)
All entities of SIX that are engaged in securities trading and securities settlement are subject to the direct supervision of FINMA.
SIX x-clear Ltd currently possesses a banking license. It has submitted an application for a license as central counterparty according to the Swiss Financial Market Infrastructure Act (FMIA) and for a dissolution of the banking license. SIX SIS Ltd possesses a license as central security depository under FMIA.
SIX Exchange Regulation
On the basis of the self-regulatory mandate prescribed under the Stock Exchange Act, SIX performs regulatory functions in stock market trading and the admission of securities as well as associated follow-up obligations.
The Exchange Regulation entity is segregated from the operational business of SIX Swiss Exchange and reports directly to the Chairman of the Board of Directors of SIX. Exchange Regulation is responsible for implementing and enforcing the rules. Surveillance & Enforcement supervises participants and traders, while Listing & Enforcement supervises issuers.
The Regulatory Board is responsible for setting regulations. Sanctions and decisions are issued by the Sanction Commission, the independent Appeals Board and the Board of Arbitration. Sanctions notices are issued by Exchange Regulation. The areas responsible for setting regulations, applying regulations and passing judgement on them have equal powers.
The legal framework is provided by the Federal Act on Stock Exchanges and Securities Trading (SESTA). Ultimate supervisory authority lies with the Swiss Financial Market Supervisory Authority (FINMA).