SNB to use SIX platform to execute monetary policy transactions

Source: SIX

Since 2 May 2014 SIX operates the new Swiss money market trading platform. The Swiss National Bank (SNB) uses the SIX trading platform to execute all monetary policy transactions and to auction Confederation bonds and registered money market claims.

The trading platform represents a key contribution to the stability and efficiency of the Swiss financial system.

Repurchase agreements are a collateralized lending instrument. Repo transactions are a valuable tool that allow financial institutions and the SNB to manage liquidity and money supply. The SNB has decided to execute all monetary policy transactions using the SIX trading platform from May 2014. The transactions were previously executed on the Eurex platform. Trading, securities settlement and payment processing will now be available in 13 different currencies on the fully integrated one-stop solution. The SIX trading platform is available to all Swiss and European financial institutions that wish to take part in public market transactions and use existing SNB facilities.

SIX will extend the platform and processing infrastructure in the next development phase. New functionalities and additional market segments are scheduled to be rolled out in autumn 2015. There are also plans to enhance the collateral management features. As a Swiss financial market infrastructure operator, SIX is contributing to the stability of the Swiss financial center and its ability to withstand crises.

Dr Urs Rüegsegger, Group CEO SIX: "We are proud to be operating the central Swiss money market trading platform used by the financial institutions and the SNB. As part of the Swiss value chain, the SIX money market trading platform constitutes state-of-the-art technology that will help to maintain the Swiss financial system's competitive edge." 

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