A Leading ETF Market

A Leading ETF Market

One of Europe’s Top Three ETF Venues

ETF QOD and QOD Europe

ETF and ETP trading takes place increasingly over the counter despite the numerous advantages of on-exchange trading, which has been significantly contributing to the success of this product. This impairs transparency, a main characteristic of ETF and ETP trading. To counter this trend, the Swiss Stock Exchange has launched a new trading service: Quote on Demand (QOD) and Quote on Demand Europe. Trading participants are now able to trade ETFs listed on other European primary exchanges through SIX Swiss Exchange. Complementary to the established multilateral open order-book, the range of tradable ETFs reaches to almost 6,000 products tradable at SIX Swiss Exchange.

This new trading service supplements the existing Quote Driven Market (QDM) and offers institutional investors the option to directly issue quote requests as part of a bidding process with the most important, registered liquidity providers in Europe. This can be on a fully automated basis or manual. All executions are automatically published by SIX straight away and are shown as “Request for Quotes”.

As is the case for conventional ETF and ETP trading, QOD allows seamless settlement via a central counterparty (CCP) and offers trading, clearing and settlement with fully automated straight-through processing. Thanks to the option to interact with the existing order book, QOD provides access to additional liquidity, which should result in improved executions.

Your Benefits

In contrast to over-the-counter trading, ETF and ETP trading on the Swiss Stock Exchange offers greater transparency, the option for sweep orders, settlement via a central counterparty, and many other advantages:

  • Regulated trading platform
  • No counterparty risk thanks to CCP
  • Straight-through-processing from trading, through to clearing and settlement
  • Trade execution reports available
  • Less bureaucracy thanks to automatic fulfillment of post-trade transparency
  • Efficient access to a variety of domestic and international trading partners

The interaction between the QDM order book with pre-trade transparency and the QOD without pre-trade transparency can result in improved executions. Furthermore, by being able to access both order books, additional liquidity is offered on the SIX trading venues.

How It Works

Thibaut Vidart, Product Manager, Global Market Data, SIX

Since the first ETF was listed 20 years ago, the Swiss Stock Exchange has shaped and continually developed the ETF market. With Quote on Demand, we are launching a trading service which brings large ETF trades onto the exchange in a straightforward manner and offers more efficient execution possibilities.

Alain Picard, Head Trading Sales & Management, Securities & Exchanges, SIX

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