SIX Group, a Swiss financial markets infrastructure operator, announced on Friday the upcoming consolidation of its Spanish stock exchange subsidiary with its primary Swiss platform.
This came as the Swiss exchange operator acquired Bolsas y Mercados Españoles (BME) last year, which is the largest Spanish stock market exchange operator. According to SIX, the migration will improve both markets for the benefit of all shareholders. Also, it will enhance the execution speed and latency while trading.
Despite the merger, the Spanish market will continue to be hosted on servers located in the city of Madrid, while the Swiss market will be hosted in Zurich. They will be overseen by the respective local regulator, which is mandatory for capital market operations.
“This is an important step in the integration of BME into SIX,” said Thomas Zeeb, Global Exchange Head and a member of the Board at SIX Group.
“Our Spanish and Swiss teams are working closely together on the best approach to this transition and are evaluating how to most effectively support activities and ensure member conversion.”
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A Phased Migration
The exchange operator elaborated that trading and trading-related services for equities, equity-like and fixed income instruments will be consolidated first, along with market data dissemination in both the markets. However, derivative instruments are excluded from this plan.
The initial migrations are scheduled to be completed between Q4 of 2022 and Q2 of 2023.
SIX is now consulting with the Spanish market participants to refine its plans for the consolidation of the two exchanges.
“This migration ensures that the market gets to benefit from an enhanced trading platform, extended capabilities, new functionalities as well as simplified and improved systems and technology,” Zeeb added.
Earlier, SIX reported an annual jump of 21.8 percent in its operating income for 2020 with CHF 1,375.9 million. EBITDA for the year came in at CHF 368.9 million, which is 72.8 percent higher than the prior year.