The Swiss Stock Exchange may investigate trades on the exchange. If it identifies mistrades, it will declare these null and void. The exchange may investigate specific trades on request or at its own discretion.
When can an investigation be carried out?
- If the parties concerned have doubts about the validity of the trade in question.
- If at least one of the two parties requests a decision as to the validity of the trade.
When does the exchange declare a trade null and void?
- If the price of the trade deviates significantly from the market price.
- If fair and orderly trading is not guaranteed.
How does the exchange proceed in the event of a suspected mistrade?
The exchange establishes an appropriate market price for the trade in question. It then decides whether the effective price deviates significantly from the market price and thereby represents a mistrade. Although the exchange is entitled to ask other parties for their opinion, its decision is final.
Provided the market price is fair, any trade executed on the basis of incorrectly entered information for orders or quotes remains valid.
How long does the exchange take to make decisions on mistrades?
In principle, the Swiss Stock Exchange takes decisions about mistrades on the same trading day. There are different deadlines for the different trading segments. In exceptional cases, these deadlines may vary, in which case the exchange will tell the relevant parties when they can expect a decision.
If the exchange is unable to make a decision within the relevant deadline, a mistrade cannot be confirmed. In exceptional cases where justified, the exchange may extend the deadlines.
What must happen within the specified deadline?
- The party concerned declares a mistrade;
- SIX makes a decision regarding the mistrade;
- SIX extends the deadline.
How are mistrades or deadline extensions communicated?
If the exchange decides that a mistrade has occurred or extends the deadline, it notifies the relevant participants via a number of channels of communication:
- Via the Newsboard of the SIX website
- For participants: in the form of news alerts via the Standard Trading Interface (STI)
The participant responsible for the mistrade covers the costs of the above procedure.