Source: SWX Swiss Exchange
The Board of Directors of the SWX Swiss Exchange has decided to offer a CCP service for equity trading on the SWX, starting in the third quarter of 2007.
This CCP service will be operated initially by SIS x-clear Ltd., but the SWX Swiss Exchange is also open to other CCP providers.
For every trade, the CCP acts as an intermediary between the buying and selling institutions and ensures that money and securities are exchanged smoothly and efficiently at minimum risk to the parties concerned. Thanks to multilateral netting, the CCP service reduces counterparty risk and improves the efficiency of trade processing.
As co-signatory to the European Code of Conduct on Clearing and Settlement, the SWX Swiss Exchange will continue to support any and all measures which promote interoperability between same-status clearing service providers and give market participants greater freedom of choice.