Dear Tony, for the first time, the FIX EMEA Trading Conference will take place virtually. What are your expectations?
In the past years, we’ve always had very good conversations at this event, and we hope to connect with the same audience, albeit only virtually. Usually, the event took place in March, so it was a good opportunity to look back on the previous year and provide clients with an outlook on upcoming projects planned for the year – but the fact that it now takes place in September doesn’t mean we won’t have enough conversation topics, on the contrary.
Can you tell us more? Which are the topics you’d like to discuss at FIX EMEA?
There are of course our own initiatives we’d like to provide our existing and potential clients more details on. Most recently, we’ve successfully expanded our microwave network, as the new route between London and Stockholm has gone live. In July we enhanced and broadened our offering in two trading segments, Structured Products and Equities, with our new “Price Validation Market Model” (PVM) and “Trading-At-Last” (TAL), a new continuous trading session immediately following the closing auction, where orders can be executed at the official closing price.
What are the benefits of these new services?
Microwave technology enables the fastest transmission of market data between trading centres. Our trading participants can identify price movements and implement investment decisions as quickly as possible. As a result, risks can be managed more efficiently. It also improves liquidity and tightens spreads, which results in better execution for everybody trading Swiss securities on the Swiss Stock Exchange.
With PVM for Structured Products orders and quotes are not immediately executed anymore but trading is interrupted briefly enabling market makers, liquidity providers and clients to validate their order or quote price, resulting in superior pricing and lower spreads. TAL provides participants with the opportunity to find additional liquidity at the end of the trading day without signaling any unexecuted positions to the market. The overarching goal of these improvements is to attract more trading over the Exchange – or OTE for short – because we are convinced that a stock exchange is able to better facilitate liquidity, provide transparency and maintain the current market price.