About This Service
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).
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.
Trade ETFs and ETPs with QOD transparently, efficiently and securely.
Combination of “Quote Driven Market” and “Quote on Demand”
Improved execution and additional liquidity by combining the two.
Thanks to the auto-execution option, large orders can be easily settled on a fully automated basis.
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.