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Switzerland has long been home to one of the most active financial markets in Europe. The SIX Swiss is the primary stock exchange of Switzerland and despite a relatively modest lineup of listings, the exchange is home to some of the largest companies in the world. The likes of Nestle, Roche, and Novartis, are all listed here.
Here are some quick facts about the SIX Swiss Exchange:
SIX Swiss is an important part of the country’s economy, while also providing a gateway for other European companies to get access to more capital and exposure. SIX Swiss is one of four major stock exchanges in Europe, alongside the London, Frankfurt, and Euronext exchanges.
"We are currently investing approximately approximately 1 million swiss francs per working day in innovative infrastructure projects" - Jos Dijsselhof
The exchange does not have a trading floor and operates under a fully automated electronic trading system. The exchange is regulated by the Swiss Financial Market Supervisory Authority (FINMA).
The SIX Swiss Exchange is known for its stringent controls and regulations for companies seeking to obtain a spot on the exchange. Some of the requirements companies need to meet include:
Corporate governance requirements for primary listings:
Corporate governance requirements for secondary listings:
As a for-profit exchange, SIX Swiss generates revenues through a few different sources, such as listing fees and trading commissions. Some important revenue streams include:
These are a handful of listing fees charged by SIX Swiss, which generates a bulk of its revenue through trading and market service fees.
The SMI Index is the benchmark index of the Swiss stock market. The index is managed by the SIX Swiss Exchange and is composed of 20 of the largest components listed on the exchange.
The SMI Index is a market capitalization-weighted index that tracks the performance of the 20 largest companies listed on SIX Swiss. The SMI Index was launched in 1988 with a base value of 1,500 points, and it is calculated using a free-float market capitalization-weighted methodology.
The constituents of the SMI are reviewed twice a year and changes are made based on their market capitalization, liquidity, and other criteria. The index is also adjusted for corporate actions such as stock splits, dividends, and mergers.
Weights of the components of the SMI Index are capped at 20%, which ensures that no single component can tip the balance of the index in its favor.
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A bulk of the SMI’s weight is attributable to the health care, financial, and consumer goods industries. The index is home to multinational corporations, such as Nestle, Novartis, UBS, Richemont, etc.
The SPI is another important index that tracks the broader Swiss public markets, as the index includes over 200 constituents from a variety of industries.
Similarly to the SMI, the SPI is a free-float market capitalization-weighted index. The index tracks over 200 public companies listed on the SIX Swiss Exchange and is frequently updated to reflect the changes in market capitalization and liquidity of its constituents.
The SPI index was launched in 1987 with a base value of 1,000 points and has since become one of the most important benchmarks for the Swiss economy.
As opposed to the SMI, the SPI includes a large number of mid-cap stocks and provides a more well-rounded view of the Swiss stock market.
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Much like the SMI, the SPI is also primarily represented by its constituents from the health care, financial, and consumer goods industries.
The Swiss Digital Exchange, or SDX, is a digital asset exchange platform created by the SIX Swiss Exchange. The launch of SDX has been delayed several times and is still under development. The exchange is designated to provide a regulated exchange ecosystem for a wide range of digital assets, such as cryptocurrencies, security tokens, digital bonds, etc.
Part of SDX’s services includes non-custodial staking for cryptocurrencies, as well as institutional custody for crypto and related digital assets.
"The idea of SDX is to bridge the existing world of how you deal with securities with the new world of digital assets. And we are doing that very much from a customer's perspective by supporting the customer to take that step from the traditional world into the new world." - Simon Streule
The exchange will be able to safely store and transfer crypto assets in a cost-effective manner and will be equipped with all relevant security measures to ensure the safety of client accounts and transactions.
The SIX Swiss Exchange is home to a total of around 250 component companies. The top 20 participants are tracked by the SMI Index.
Nestle (SWX:NESN) is the largest company listed on the SIX Swiss Exchange. The company has a market capitalization of over CHF 300 billion.
Yes, SIX Swiss is the only stock exchange in Switzerland and is located in Zurich. The exchange does not have a physical trading floor and is fully digital.