SIX Swiss Exchange’s platform design will target traders who are more keen to trade with larger blocks, coupled with less liquid means. The platform itself was designed to cater to sell-side market participants.
The reason for the delay until H1 2015 has to do with the development and genesis of a multilateral liquidity pool, necessary for the trading of large orders of corporate bonds. Furthermore, this will help abolish the disadvantages of inefficient off-exchange trading, insufficient liquidity and small trade sizes.
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The new platform is just one component of SIX Swiss Exchange’s “Over the Exchange initiative,” which affords market participants access to the exchange’s broadly diversified client base. According to a recent Six Swiss Exchange statement, the new trading platform will facilitate streamlined, competitive execution particularly for less liquid corporate bonds and large trades of at least two million in the following currencies: EUR, GBP or USD.
From a regulatory perspective, the platform will be domiciled in Switzerland and subject to regulatory supervision by the Swiss Financial Market Supervisory Authority (FINMA). Moreover, Algomi Ltd. was selected as the technology partner for the development of this industry-leading solution.
According to Christian Katz, Division CEO Swiss Exchange, in a recent statement on the platform launch, “With the new electronic trading platform for corporate bonds, we are creating a regulated market that will benefit not only market professionals but also provide greater efficiency for their clients, in other words pension funds and asset managers.”