In the equity space, we introduced Trading-At-Last, or “TAL” for short, for ETFs we launched “Quote on Demand” and for structured products the Price Validation Market Model, or “PVM”. Without going into further detail per measure: their overall aim is to provide our clients with additional sources of liquidity and functionalities in order to make trading on our exchange even more attractive.
Let's look to the future: what will be the challenges in 2021?
Even if we cannot influence political processes, we have to deal with their impact on our business. As a result of Brexit and the mutual equivalence recognition between Switzerland and England that has now taken place, the MTFs in London will resume trading in Swiss equities. This will bring back fragmentation in Swiss shares, and the coming months will have to show where the new balance will be established between trading on the reference market and on the alternative platforms.
This competition is of course nothing new for us, rather a return to normality that we have expected and are prepared for. We are focusing on our own strengths and the competitiveness of our customers – because their needs and their success determine what we do and our how well we do it.
Could you give us some examples?
Already on 15 February, we will introduce Swiss EBBO, another service that makes trading in Swiss equities on our exchange more attractive. It provides trading participants with additional liquidity and supports them in their efforts to achieve the best possible execution of their orders for themselves and their clients. In the Swiss EBBO order book, designated liquidity providers offer prices at the European Best Bid and Offer, or EBBO. It complements the existing lit Central Limit Order Book and SwissAtMid, our non-displayed liquidity pool. All three order books can be accessed simultaneously with a single order. This unique setup helps participants get the best price and also reduces the risk and complexity associated with executing in multiple liquidity pools outside of the Swiss Stock Exchange.
Even though the “return to normality” promises to be challenging, we are looking forward to the opportunity to demonstrate our innovative potential and our Swiss pioneering spirit anew. This is the best way for us to keep improving.
Christian, thank you for this interview.