Ever since the non-equivalence became an issue, liquidity has shifted to and from the Swiss Stock Exchange. Looking back, which observations are relevant for the future?
Usually when uncertainty peaks, we tend to see a flight to the primaries. So one might argue that even without the non-equivalency issue, we’d have seen a lot of liquidity shifting to our market last year – and I think this pattern will remain true in future crises, because we are the main market where the reference price is defined and where the largest liquidity provides the biggest certainty of execution. That said, year-on-year comparisons will have to factor in that March 2020 in particular saw unprecedented volatility and volumes.
For a more detailed analysis how the surge in trading activity across Europe in H1 2020 has manifested itself in terms of the impact on liquidity, spreads and depth across different venues I can recommend one of our Trading InfoSnack articles. And I’m looking forward to share more observations about overall volumes, spreads, the depth of liquidity at the touch as well as developments in non-displayed and block trading during the panel at TradeTech.
You mentioned innovation: what were the latest features introduced on the Swiss Stock Exchange, and what’s in the pipeline?
Over the last twelve months, we launched Trading-at-Last and Swiss EBBO for Equities, and we added a new route from London to Stockholm to our Microwave network – to name a few. In 2021 we’re aiming at expanding this network further, introduce Conditional Block Orders, take our Deal Pool platform for Bonds to the next level – and of course we expect the launch of SDX, the SIX Digital Exchange (pending regulatory approvals). And these are just the main enhancements – so expect more news from the Swiss Stock Exchange over the course of the year.