SIX Swiss Exchange (formerly SWX Swiss Exchange), based in
Zurich, is
Switzerland
). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzona, Lausanne, Luzern, Neuchâtel ...
's principal
stock exchange (the other being
Berne eXchange). SIX Swiss Exchange also trades other
securities such as Swiss
government bonds and
derivatives such as
stock options.
SIX Swiss Exchange is completely owned by
SIX Group
SIX operates the infrastructure for the Swiss financial centre. The company provides services relating to securities transactions, the processing of financial information, payment transactions and is building a digital infrastructure. The company ...
, an unlisted public limited company itself controlled by 122 banks or financial institutions.
The exchange in its current state was founded in 1993 by merging the
Geneva Stock Exchange, the
Basel Stock Exchange and the
Zürich
, neighboring_municipalities = Adliswil, Dübendorf, Fällanden, Kilchberg, Maur, Oberengstringen, Opfikon, Regensdorf, Rümlang, Schlieren, Stallikon, Uitikon, Urdorf, Wallisellen, Zollikon
, twintowns = Kunming, San Francisco
Z ...
stock exchange into the (German for "Swiss Securities Exchanges Association"), publicly known in English as ''Swiss Exchange''.
[SIX Swiss Exchange](_blank)
Interactive brokers. Retrieved 15 April 2020. The newly created association took over trading in 1995. It was the first stock exchange in the world to incorporate a fully automated trading, clearing and settlement system.
The association was renamed to SWX Swiss Exchange in 1999.
In 2002, the association was changed to a
public limited company
A public limited company (legally abbreviated to PLC or plc) is a type of public company under United Kingdom company law, some Commonwealth jurisdictions, and the Republic of Ireland. It is a limited liability company whose shares may be fr ...
called SWX Swiss Exchange AG. In July 2004, it rejected a merger proposal from
Deutsche Börse, which analysts anticipated as profitable for many small companies listed on SWX Swiss Exchange. In 2008, SWX Swiss Exchange merged with SIS Group and
Telekurs into the new
SIX Group
SIX operates the infrastructure for the Swiss financial centre. The company provides services relating to securities transactions, the processing of financial information, payment transactions and is building a digital infrastructure. The company ...
, and was renamed as SIX Swiss Exchange, which is still its name as of 2020.
SIX Swiss Exchange maintains several major indices. The most known index is the SMI, or
Swiss Market Index, which consists of the 20 largest and most liquid companies of the SPI. The SPI, or
Swiss Performance Index
The Swiss Performance Index (SPI) is a wide total-return index that tracks equity primarily listed on SIX Swiss Exchange with a free-float of at least 20%, and excluding investment companies. The index covers large, mid and small caps and is ...
, contains more than 200 companies listed on the exchange that meet requirements. The SLI, or
Swiss Leader Index, is a capped index with some of the largest 30 companies. The SBI, or
Swiss Bond Index
The Swiss Bond Index (SBI) is a bond index which tracks fixed-rate, investment-grade obligations emitted in Swiss Francs, the currency of the Swiss Confederation. The index is calculated by SIX Swiss Exchange.
It includes all the bonds emitted in ...
, tracks obligations emitted in
Swiss franc
The Swiss franc is the currency and legal tender of Switzerland and Liechtenstein. It is also legal tender in the Italian exclave of Campione d'Italia which is surrounded by Swiss territory. The Swiss National Bank (SNB) issues banknotes and the ...
s. The
market capitalization of all companies listed at SIX Swiss Exchange amounted in 2018 to 1.6 trillion Swiss francs, making it one of the top exchanges in the world by capitalization.
History
First Swiss exchanges
The first exchanges in Switzerland were created locally in major Swiss cities throughout Switzerland, with the authorization of the
Cantonal authorities.
Geneva
Geneva ( ; french: Genève ) frp, Genèva ; german: link=no, Genf ; it, Ginevra ; rm, Genevra is the second-most populous city in Switzerland (after Zürich) and the most populous city of Romandy, the French-speaking part of Switzerland. Situa ...
paved the way in the year 1850, when the ( en, United Brokers Association) was founded. Its
trading floor
Open outcry is a method of communication between professionals on a stock exchange or futures exchange, typically on a trading floor. It involves shouting and the use of hand signals to transfer information primarily about buy and sell order ...
was opened in 1855 and approved by the
Grand Council of Geneva
The Grand Council of Geneva (french: Grand Conseil de Genève) is the legislature of the canton of Geneva, in Switzerland. Geneva, styled as a 'Republic and Canton', has a unicameral legislature. The Grand Council was established in its pres ...
in 1856.
The
Basler Börse followed in 1866 or 1876 (sources disagree) in
Basel
, french: link=no, Bâlois(e), it, Basilese
, neighboring_municipalities= Allschwil (BL), Hégenheim (FR-68), Binningen (BL), Birsfelden (BL), Bottmingen (BL), Huningue (FR-68), Münchenstein (BL), Muttenz (BL), Reinach (BL), Riehen (B ...
, as well as another one in
Zürich
, neighboring_municipalities = Adliswil, Dübendorf, Fällanden, Kilchberg, Maur, Oberengstringen, Opfikon, Regensdorf, Rümlang, Schlieren, Stallikon, Uitikon, Urdorf, Wallisellen, Zollikon
, twintowns = Kunming, San Francisco
Z ...
in 1873.
The
Berne exchange, which still exists today, was founded in 1884. Smaller exchanges were also created in
Lausanne
, neighboring_municipalities= Bottens, Bretigny-sur-Morrens, Chavannes-près-Renens, Cheseaux-sur-Lausanne, Crissier, Cugy, Écublens, Épalinges, Évian-les-Bains (FR-74), Froideville, Jouxtens-Mézery, Le Mont-sur-Lausanne, Lugrin (FR ...
in 1873, in
St. Gallen in 1887 and in
Neuchâtel
, neighboring_municipalities= Auvernier, Boudry, Chabrey (VD), Colombier, Cressier, Cudrefin (VD), Delley-Portalban (FR), Enges, Fenin-Vilars-Saules, Hauterive, Saint-Blaise, Savagnier
, twintowns = Aarau (Switzerland), Besançon (Fra ...
in 1905.
[Die Anfänge der Schweizer Börsen](_blank)
Neue Zürcher Zeitung. 8 December 2015.] The exchanges were subject by the Cantons to a
value added tax.
During the
First World War
World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was List of wars and anthropogenic disasters by death toll, one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, ...
, all Swiss exchanges were closed, with the exception of
bond
Bond or bonds may refer to:
Common meanings
* Bond (finance), a type of debt security
* Bail bond, a commercial third-party guarantor of surety bonds in the United States
* Chemical bond, the attraction of atoms, ions or molecules to form chemical ...
trading in the Geneva exchange. The
depression of 1920–21
Depression may refer to:
Mental health
* Depression (mood), a state of low mood and aversion to activity
* Mood disorders characterized by depression are commonly referred to as simply ''depression'', including:
** Dysthymia, also known as pe ...
was followed by a bull market in the 1920s, during which a new exchange building (''alte Börse'', German for "old exchange") was constructed in Zurich at Bleicherweg 5, near
Paradeplatz
Paradeplatz is a square on Bahnhofstrasse in downtown Zürich, Switzerland. It is one of the most expensive pieces of real estate in Switzerland and has become synonymous with wealth and the Swiss banks, being the location of the headquarters ...
. The building is still standing, but no longer used as an exchange.
After the
Great Depression
The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
of the 1930s, a federal banking law was introduced. This law is still in effect today and, in its form as of 2020, requires permission by the
FINMA
The Swiss Financial Market Supervisory Authority (FINMA) is the Swiss government body responsible for financial regulation. This includes the supervision of banks, insurance companies, stock exchanges and securities dealers, as well as other fi ...
to do banking activities, as well as due diligence and
banking secrecy. An exchange law was also discussed, but not introduced. Finally, Swiss exchanges were required to unite under a securities exchange association in order to set up a registration office, so that the
Swiss National Bank could have the desired influence.
Post-war era
After the
Second World War
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposi ...
, banking fees for trades on exchanges were unified in a broker conference. In the middle of the 1950s, the revenues of the exchanges reached new highs as in times before or between the wars until 1929. This development continued until the
Kennedy Slide of 1962, which was triggered by measures against the economic slowdown, the New York crash, and the
Cuban Missile Crisis.
Following the
deregulation and the termination of the
Bretton Woods System
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western European countries, Australia, and Japan after the 1944 Bretton Woods Agreement. The Bretto ...
(fixed exchange rates) by the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
, in the 1970s, a fundamental transformation of the
economy
An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with th ...
and of the financial landscape started, which is still ongoing today. Fluctuating exchange rates carried new risks for the economy and a need for
hedging solutions arose. Finance
derivatives were introduced as a response to this need and in 1973, the
Chicago Board Options Exchange was created as an exchange that only handles derivatives. With the
oil crisis of 1974, the economy went through the biggest after-war recession since 1931. In Switzerland, the oil shock led to such a rush on investment money that it was considered to close the exchanges.
New economy
The
Geneva Stock Exchange, the
Basel Stock Exchange and the Zurich stock exchange merged into SWX Swiss Exchange in 1993.
On 16 August 1995, the closing bells rang for the last time on the trading floors, ending an era spanning more than a century. They were superseded with the world's first automated trading,
clearing and
settlement
Settlement may refer to:
* Human settlement, a community where people live
*Settlement (structural), the distortion or disruption of parts of a building
*Closing (real estate), the final step in executing a real estate transaction
*Settlement (fin ...
system.
After the international financial markets recovered from the
1997/1998 Asian crisis and the
1998 Russian crisis, there was a period of two years of lasting bull market from October 1998. This bull market was mainly driven by the
new economy boom and transition of this time. However, the boom was more limited on Swiss stock indices, since they are dominated by pharmaceutical, food and financial values, while Internet companies and technology companies play only a secondary role. Hence, it was only in May 2000 that the
Swiss Performance Index
The Swiss Performance Index (SPI) is a wide total-return index that tracks equity primarily listed on SIX Swiss Exchange with a free-float of at least 20%, and excluding investment companies. The index covers large, mid and small caps and is ...
crossed again the peak of 5,237 points that it had reached before the Russian crisis. It reached its then all-time high of 5,770 points on 23 August 2000. The bursting of the
dot-com bubble
The dot-com bubble (dot-com boom, tech bubble, or the Internet bubble) was a stock market bubble in the late 1990s, a period of massive growth in the use and adoption of the Internet.
Between 1995 and its peak in March 2000, the Nasdaq Comp ...
sent stock prices down worldwide, and did not spare Swiss stock indices. The SPI entered a bear market. It had lost more than 20% from its previous peak by 22 March 2001, on which day it reached a temporary bottom.
After a short recovery phase, the SPI started to erode continuously from May 2001. The
9/11 attacks accelerated this evolution, started with the bursting of the dot-com bubble, further. The SPI reached its bottom of 2,603 points one and a half years later, on 12 March 2003, at the peak of the
SARS-epidemic and the
Iraq war.
SIX Group
In May 2007, the SWX Group, the SIS Group and
Telekurs Group announced their merger to a new
holding called Swiss Financial Market Services AG. The merger was official in 2008 and the new company was renamed to
SIX Group AG. SWX Swiss Exchange was renamed to SIX Swiss Exchange in the same year.
Subsidiaries and acquisitions
Eurex
From 1998 to 2012, SIX Swiss Exchange owned 15% of
Eurex, the world's second largest
futures and derivatives exchange, after the
Chicago Mercantile Exchange
The Chicago Mercantile Exchange (CME) (often called "the Chicago Merc", or "the Merc") is a global derivatives marketplace based in Chicago and located at 20 S. Wacker Drive. The CME was founded in 1898 as the Chicago Butter and Egg Board, an ...
, along with its German partner
Deutsche Börse (85%). Deutsche Börse purchased the 15% ownership from SIX Swiss Exchange in 2012, becoming its sole owner.
SWX Europe
SWX Swiss Exchange, as was its new name since 1999,
acquired the stock exchange platform Tradepoint, renamed as
Virt-x, for the trading of 32 Swiss
bluechip stocks, regulated by the British
Financial Services Authority. The new platform was opened on 25 June 2001.
The main goals were on the one hand to build a pan-European exchange and on the other hand to mitigate the migration of the trading volume on
SMI stocks to the
London exchange.
The listed companies were offered the choice between two market segments for SMI stocks: The EU-regulated market segment and the UK-exchange-regulated market segment. Both segments were subject to the regulations of the British Financial Services Authority, and the EU segment was in addition subject to EU regulations.
Virt-x was renamed to SWX Europe in 2008. SWX Europe came to a halt in 2009 and the trading was transferred to SIX Swiss Exchange.
International Securities Exchange
On 30 April 2007, SWX Swiss exchange acquired, jointly with
Deutsche Börse, the US
option exchange
ISE Ise may refer to:
Places
*Ise, Mie, a city in Japan
** Ise Grand Shrine, a Shinto shrine located in Ise, Mie
* Ise Ekiti, a city in Nigeria
* Ise, Norway, a village in Norway
* Ise Province, an ancient province of Japan
* River Ise, a tributary of ...
. With the acquisition of
International Securities Exchange Holding (ISE), one of the largest trading platforms for finance
derivatives emerged. The price for ISE was $2.8 billion and it was financed through
Eurex, which was then owned 85% by Deutsche Börse and 15% by SWX Swiss Exchange. The revenue of ISE was about $178 million in 2006, and the profit around $55 million. The ISE remains independent and keeps its structure and
branding
Branding may refer to:
Physical markings
* Making a mark, typically by charring:
** Wood branding, permanently marking, by way of heat, typically of wood (also applied to plastic, cork, leather, etc.)
** Livestock branding, the marking of animals ...
.
Scoach
On 1 January 2007, SWX Swiss Exchange and Deutsche Börse jointly started and managed an exchange for structured products, a
joint venture
A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acces ...
called
Scoach.
In February 2013, Scoach was split into Scoach Europa AG, fully owned by Deutsche Börse, and Scoach Schweiz AG, fully owned by SIX Swiss Exchange. Scoach Schweiz AG was renamed to SIX Structured Products in November 2013.
Headquarters
Headquarters were moved to Selnaustrasse in 2002. In 2017, they moved again to the Hard Turm Park in
Zurich West.
Technological advances
For the first time in the world, in 1962, an exchange TV broadcast was introduced in Basel and Zurich. Banks started to use
computers, while exchanges followed more hesitantly. In 1964,
Telekurs was mandated by the Zurich stock exchange to investigate how computer technologies could be used on the exchange. Only in the 1980s did computers finally find their way into exchanges. On 8 December 1995, the
electronic trading of foreign stock was introduced, on 2 August 1996 that of Swiss stock and options. Finally, on 16 August 1996, bonds were also electronically traded and the
trading floor
Open outcry is a method of communication between professionals on a stock exchange or futures exchange, typically on a trading floor. It involves shouting and the use of hand signals to transfer information primarily about buy and sell order ...
was discontinued.
On 3 December 2020, SIX Swiss Exchange, in collaboration with the
Bank for International Settlements
The Bank for International Settlements (BIS) is an international financial institution owned by central banks that "fosters international monetary and financial cooperation and serves as a bank for central banks".
The BIS carries out its work th ...
and
Swiss National Bank, completed a wholesale
central bank digital currency proof-of-concept on a distributed
digital asset platform.
Other services
SIX Swiss Exchange is part of the
SIX Group
SIX operates the infrastructure for the Swiss financial centre. The company provides services relating to securities transactions, the processing of financial information, payment transactions and is building a digital infrastructure. The company ...
, which provides a number of other financial infrastructure services in Switzerland. These include
clearing, acting as
central counterparty,
custody services,
market data services,
share registry, payment services, and running the
real-time gross settlement (RTGS) system on behalf of the central bank of Switzerland, the
Swiss National Bank.
Notes and references
{{authority control
Financial services companies established in 1850
Financial services companies of Switzerland
Stock exchanges in Europe
Central securities depositories
Securities clearing and depository institutions