SIX Swiss Exchange Trading

SIX Swiss Exchange trading involves investing in companies on the main stock exchange in Switzerland and one of the largest in Europe, by market capitalisation. This page will discuss its history, some of its related indices and how it operates, providing information on the trading hours and rules. Our guide also covers the benefits of SIX Swiss Exchange trading, some top tips for doing so and a list of the best brokers for SIX Swiss Exchange trading.

What is the SIX Swiss Exchange?

A Brief History

The SIX Swiss Exchange is operated by the SIX Group Ltd. and was formed in 1995 following the merging of the three stock exchanges of Geneva, Basel and Zürich. The following year, a system to allow fully automated clearing, settlement and trading were introduced – it was the first stock exchange to do so. In 1999, the stock exchange was named the “SWX Swiss Exchange” but this was later rebranded to the SIX Swiss Exchange after merging with the SIS Group and Telekurs in 2008.

Based primarily in Zürich, Switzerland, SIX Swiss Exchange trading supports stocks, stock options, Swiss government bonds, exchange-traded funds (ETFs) and exchange-traded products (ETPs), while also providing support for listing and post-trade services.

SIX Swiss Exchange Currency Holiday Calendar 2021

Contact details with information like the Zürich address for the offices, along with a local support centre located in London for UK-based traders can be found on the website. The SIX Swiss Exchange trading website also includes a newsroom where trading key figures can be found in official notices and press releases.

Indices

SMI

The main stock market index in Switzerland is the Swiss Market Index (SMI), consisting of the 20 largest and most liquid company shares that make up over 80% of the total market capitalisation of the Swiss equity market.

This is known as the SIX Swiss Exchange trading blue chips segment of the Swiss equity market. These stocks come from the Swiss Performance Index (SPI), which includes all Swiss stocks. With listed companies weighted by market cap, the SMI is constantly being recalculated in real-time.

Other notable Indices that are part of the Swiss Index family include:

SPI – The Swiss Performance Index is the overall exchange index that consists of almost all companies listed on the SIX Swiss Exchange trading market, excluding equity securities with a free float of less than 20% and investment companies.

SMIM – The Swiss Market Index-Mid consists of the 30 largest stocks in the SPI that are not included in the blue-chip segment, the SMI. These stocks are determined by considering both the market capitalisation and the turnover of shares.

UBS 100 – The UBS 100 Index is made up of the 100 largest shares from the SPI measured by market capitalisation. It includes all in the SMI and SMIM and altogether covers more than 98% of the Swiss equity market.

SARON

The Swiss Average Rate Overnight (SARON) is an overnight reference rate that relates to the Swiss franc repo market. This is an important tool for daily liquidity management for banks and overnight interest rates are vital to determine a yield curve. SARON is administrated by the SIX Swiss Exchange trading group and is seen as an alternative to CHF Libor, providing resilient and reliable financial benchmarks and leading to SARON’s endorsement under the EU-regulated market in 2020.

How SIX Swiss Exchange Trading Works

The SIX Swiss Exchange trading day in Central European Time (GMT+2) is as follows:

  • 06:00 – 09:30: pre-market session
  • 09:30 – 17:30: normal trading hours
  • 17:30 – 22:00: post-market session

If you are a UK-based trader then bear in mind that CET is two hours ahead of GMT, meaning that the SIX Swiss Exchange trading opening hours are 07:30 – 15:30 GMT. It may help to set an alarm that tells you when to stop trading so you are not caught out by getting your time mixed up.

Fees

SIX charges several different fees to investors, including participation fees, admission fees and recurring annual fees. The charges that most directly affect short-term investors are transaction and “ad valorem” fees, which are based on the type of securities being traded, the volume of trade and the number of transactions performed.

In addition, there are exchange fees for SIX Swiss Exchange trading market data, split into three different tiers:

  • Level 1: This provides an ‘inside market’ level of information on the best bid, ask and last. With an annual cost of 300.00 CHF, it is ideal for those who want cost-effective access to information needed to trade on chart-based trading systems.
  • Level 2: Defined as ‘market depth’ information, level 2 provides the best bid, ask and last as well as the next nine best bids and asks. This level incurs a cost of 1,080.00 CHF per annum.
  • Level 2 Plus/DOB: This is the most expensive level of SIX Swiss Exchange trading data, at an annual cost of 1,512.00 CHF. This tier gives access to the best bid, ask and last along with the subsequent 29 best bids and asks, where the extended market depth is for the Swiss Blue Chips only. Additionally, the detailed order book (DOB) means professionals have aggregated/disaggregated market depth for all equity segments available to them.

SIX Swiss Exchange Trading Rules & Regulation

The listing requirements of companies on the SIX Swiss Exchange are:

  • Provide, at minimum, accounting history of the previous three years with capital resources of at least CHF 25 million.
  • Publish annual reports that include audited financial statements. Submit semi-annual financial reports to the SIX Swiss Regulation in addition to periodic reporting of equity securities, bonds and conversion rights, derivatives, investment funds and other collective investment schemes. These reports can be accessed via the newsboard on the exchange’s website.
  • Appoint internal officers to ensure constant compliance with the trading rules. Additionally, there must be sufficient staff with experience and expertise for stock exchange trading.
  • Minimum capitalisation of 25 million CHF and minimum distribution of 25% of equity securities.

SIX Swiss Exchange trading market data fees agreement

Biggest Players

There are over 250 companies listed for SIX Swiss Exchange trading that range from small family businesses to large global giants that altogether account for a total market capitalisation of USD 1.76 trillion. The top 10 SMI total return components are listed below, with their tickers and market capitalisation in millions of CHF.

  • 1. Roche Holding AG (ROG) – 222,338.16
  • 2. Nestle S.A (NESN) – 219,388.29
  • 3. Novartis AG (NOVN) – 206,937.07
  • 4. Compagnie Financiere Richemont SA (CFR) – 60,552.00
  • 5. ABB LTD (ABBN) – 59,368.12
  • 6. Zurich Insurance Group AG (ZURN) – 55,038.33
  • 7. Lonza Group AG (LONN) – 52,515.36
  • 8. UBS Group (UBSG) – 52,280.91
  • 9. Sika AG (SIKA) – 45,242.37
  • 10. Givaudan S.A. (GIVN) – 35,967.13

Other popular SIX Swiss Exchange trading members include Relief Therapeutics, under the symbol RLF, Wisekey (WIHN), PolyPeptide Group AG (PPGN),  Zur Rose (ROSE) and Partners Group Holding AG (PGHN).

Why Start SIX Swiss Exchange Trading?

  • High liquidity makes it very easy to trade the important, blue-chip segment of the SPI index.
  • Compliance with both the EU Benchmark Regulation and Undertakings for the Collective Investment in Transferable Securities provides a suitable index for any EU company seeking a gateway to Swiss visibility. High volatility stocks offer ample opportunity to generate profits with SIX Swiss Exchange trading, where 60% of the market weighting is made up of healthcare and consumer goods companies.
  • The IPO process is highly efficient, to the point where a company can be listed within a month.
  • Switzerland is a politically stable country that is renowned for its solid legal system and strong financial system and infrastructure.

How To Start Day Trading On The SIX Swiss Exchange

Choose A Broker

The first step you need to take is to find a broker that is linked to the SIX Swiss Exchange trading centre so that you can execute the trades that you want. As you will rely on them to facilitate your orders and provide any advice or other vital information you may need, it is one of the most important decisions you can make and greatly influences your success.

When exploring the top SIX Swiss Exchange brokers, some major considerations should be the associated costs, such as commission fees, that eat away at your profits, how well made and straightforward it is to use is their trading platform and how fast and reliable their customer service is as any potential glitches or issues could cost you both time and money.

For more guidance on selecting the best SIX Swiss Exchange trading broker for you, see here.

Familiarise Yourself With Swiss Stocks

It is easy to purchase stock on the SIX Swiss Exchange trading centre due to the welcoming foreign investment policy, though it is important to learn the charges and rules related to the stock exchange before trading. For example, you may need to pay Swiss taxes on any profits that you make, which could influence your success.

Strategy

Day trading without a plan is a risky business that can quickly cost you a lot of money. Trading stocks is not always a simple process, so heading in with a predetermined strategy is a wise move. Many strategies rely on the analysis of market information using charts and the identification patterns in historic data to predict what will happen in the future.

You will need to have patience as following a strategy can be difficult and time-consuming, while honing your craft can take even longer. There are plenty of strategies that you can find online, alternatively, visit our strategies page for more in-depth advice, tips and information.

Select A Stock

For your best chance at maximising profits, you need to ensure you perform due diligence on your search for the stocks you shall day trade. The two most important factors you should consider for SIX Swiss Exchange trading are volume and volatility.

Volume is simply the number of shares that are being traded at a given time, with each transaction that occurs increasing the total volume. This is a good way to check the validity of a trend move as high volumes imply very substantial interest.

Volatility refers to how unpredictable a stock is, with highly volatile stocks bringing an added risk of the price fluctuating sharply over short periods of time. Volatility can provide an opportunity for keen-eyed day traders to quickly turn a profit, though it can also wipe away winnings in the blink of an eye.

Bear In Mind Currency Conversion

As the SIX Swiss Exchange trading centre operates in CHF, it is important to consider any currency exchange rates if you are a foreign investor. Note that the Swiss franc is generally strong against the USD. You can use the currency converter on their website to find the most up-to-date exchange rates.SIX Swiss Exchange trading live settlement cycle quotes

Trading Tips

Educational Resources

Whether you are a beginner, expert or anywhere in between, you should always use the widespread and thorough resources that are available online to keep up with the ever-changing SIX Swiss Exchange trading market. Some of the resources you could use include, but are not limited to:

  • Books and ebooks
  • Charts
  • Courses & video tutorials
  • Forums & chat rooms
  • Historical data charts

Demo Accounts

Practising with a demo account before trading using personal capital is a great risk-free way to learn the nuances and intricacies of the SIX Swiss Exchange trading centre and help you determine what strategy you want to adopt. Many brokers will nowadays provide this service free of charge, funding accounts with virtual funds in a simulated trading environment.

News

Keeping up to date on current events is one of the best ways to help you predict what the market is going to do in both the short and long term. Look out for news websites reporting information like quarterly earnings, returns, investor relations and IPO calendars for SIX Swiss Exchange trading companies.

Examples of websites include:

  • Bloomberg
  • Google Finance
  • Reuters
  • Yahoo Finance

Final Word On SIX Swiss Exchange

The SIX Swiss Exchange offers traders a gateway into reliable and stable financial markets and successful Swiss companies. The many company stocks and indices available offer a good range of potentially profitable opportunities in all major industries. If you wish to begin SIX Swiss Exchange trading then follow our guide above and see our list of top SIX Swiss Exchange brokers here.

FAQs

Who Owns The SIX Swiss Stock Exchange?

SIX is owned by 121 major financial institutions. Share distribution is arranged such that no single owner has an absolute majority. The significant shareholders are PCS Holding AG (holding 22.07%), Verbrugge NV (11.69%) and Rieter Holding Ltd (3.01%).

What Dates Are The Market Holidays?

SIX Swiss Exchange trading holidays follow the standard Christian calendar, with Easter, Christmas and other major holidays in place. The 2022 Trading and Currency Holiday Calendars for the SIX Swiss Exchange can be found on their website.

Who Regulates The SIX Swiss Stock Exchange?

SIX Swiss Exchange trading is regulated by the SIX Exchange Regulation Body (SER). The Swiss financial markets are self-regulated under the supervision of FINMA. The Regulatory Board issues trading rules, the compliance with which is monitored by the SER. There is a regulation directive in place for ad-hoc publicity in case of an obligation to disclose price-sensitive facts whereby the issuers publication must provide true, clear and complete information on significant events.

How Can I Obtain My Trader License?

If you want a job as a trader for a SIX Swiss Exchange trading centre AG Participant or Reporting Member you will need to complete a training session and a trader exam. Training sessions take place either at SIX premises or on-site at client locations in both English and German.

Can I Trade Crypto On The SIX Swiss Exchange?

The SIX Swiss Exchange trading centre is one of the world’s leading regulated marketplaces to trade products with cryptocurrencies, with a choice of over 70 products. 62 of these are structured produces and 17 are ETPs, for example, the Polkadot ETP.

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