SIX introduces market quality metrics for Bonds
01 November 2012 | 1850 views | 0
Source: SIX Swiss Exchange
After SIX Swiss Exchange successfully introduced Market Quality Metrics® (MQM) in ETFs and ETPs and so made it possible to check pre-trade data, MQM is now being rolled out for bonds that are traded on SIX Swiss Exchange.
Thanks to MQM in bonds all market participants can now view and analyze the historical availability of quotes (i.e. the highest bid prices/lowest ask prices), the daily average spreads (bid/ask spreads) as well as the average size of offered rates on both sides of the order book.
Valuable tool for analyzing quotes and spreads
These data are freely available from the SIX Swiss Exchange website or all market participants and - in addition to market data and bond details, for example - are shown individually for each bond. Furthermore, the data can be downloadedretrospectively as an Excel file and analyzed.
Ueli Goldener, Head Fixed Income Product Management at SIX Swiss Exchange, commented: "With MQM in bonds, market participants gain a valuable tool that can be used to analyze quotes and spreads together with their availability. In particular, the analysis tool will further benefit order book trading via SIX Swiss Exchange."
Today, over 85% of all CHF bond transactions are already traded via the order books of SIX Swiss Exchange. This is mainly a result of the high availability of market maker quotes, which guarantee that prices can be set continually. TheBonds Quarterly Statistics report contains more information on the performance of the bond segment.
Reliable and neutral information
One of SIX Swiss Exchange's main objectives is to ensure an optimum level of transparency. In addition to Market Quality Metrics, the free-of-charge online tools ELM and Intraday Activity were launched; ELM provides an overview of liquidity levels in the entire investment universe of the SPI®, while Intraday Activity shows the development of intraday turnover onSIX Swiss Exchange and Scoach Switzerland.