Companies listed on SIX Swiss Exchange can apply to open an additional order book with its own security number,
thereby establishing a separate trading line.
When a separate trading line is opened, the securities are traded under two security numbers. However,
this does not constitute an actual listing. The new trading line allows a listed security
to be traded under a separate security number for a limited time.
Why do companies trade securities on a second line?
An additional security facilitates public takeover/exchange offers. It is used
exclusively for trading or exchanging securities during the term of such offers.
Companies use an additional security to buy back their own securities until the target
figure has been achieved.
A new trading line allows different dividends to be paid in the case of
equity securities with different dividend entitlements. Different dividend entitlements
can occur, for example, following a capital increase or the exercise of derivatives. In such cases,
an additional security may be opened up to the next dividend due date.
If, during capital restructurings or mergers, the rights associated with the security
are modified for a certain period, using an additional security can simplify the technical clearing
and settlement procedure.
Which regulatory provisions apply to the opening and closing of a trading line?