20.04.2017 Update Q&A to the subject MDDX
The aim of this microsite is to provide information about SIX Swiss Exchange’s progress on the implementation of the Financial Market Infrastructure Act (FMIA) and to outline our position on key topics.
This site will be updated on a regular basis to keep all interested parties up-to-date. SIX's dedicated expert team is available to answer any inquiries regarding SIX Swiss Exchange's progress on the implementation.
For questions not covered in the Q&A or further requests please use the email contact provided on this site.
The Financial Markets Infrastructure Act (FMIA), also known as Finanzmarktinfrastrukturgesetz (FinfraG), entered into force on 1 January 2016. The new law contains supervisory requirements for the operation of financial market infrastructures, including stock exchanges, multilateral trading facilities, central counterparties and central securities depositories. In addition, it contains all of the measures that apply in connection with trading in securities and derivatives for all financial market participants, particularly the new derivatives trading rules, which are likewise consistent with international standards.
FMIA requires all authorised financial market infrastructures to submit a new request for authorisation limited to examination of the new requirements.
MiFID II and MiFIR
Final FINMA circular on "Reporting Duty 2018/2"
|Company / Service||Current Authorisation||Future License|
|SIX Swiss Exchange||Exchange||Authorisation as Stock Exchange|
|SIX Structured Products Exchange||Exchange||Current authorisation will cease once the exchange is merged into SIX Swiss Exchange|
|SIX Corporate Bonds||Exchange-like organisation||Multilateral Trading Facility (MTF), as defined by FMIA|
|Bilateral Trading Platform XBTR||Operated by SIX Structured Products Exchange as a bilateral trading platform||Ongoing consultation to the draft proposal of FINMA circular 2018/xx “Organised trading facilities" (completion and publication of final FINMA circular to be awaited)|
Details of implementation are scheduled for 2017.
SIX Swiss Exchange, as a Swiss company, is not directly regulated by European legislators, however European laws do impact a large number of our participants. SIX Swiss Exchange may introduce European provisions as long as they are complimentary to its business and would not be in breach of domestic law.
Equivalence in terms of Art. 23 MiFIR (Trading mandate)
Article 23 MiFIR obliges European investment firms to trade shares on a trading venue in the EU or on an equivalent third-country venue. This obligation covers all shares admitted to trading in the EU. This affects most of the Swiss shares traded on SIX Swiss Exchange.
Switzerland would like to achieve the status of an equivalent third-country in order to allow EU trading participants to continue accessing the Swiss market. This requires a formal recognition of the equivalence of the Swiss legal framework. The necessary steps for this are being carried out by the authorities.
Relevant passage in paragraph 1 of Art. 23 MiFIR
Trading obligations for Investment Firms
1. An investment firm shall ensure the trades it undertakes in shares admitted to trading on a regulated market or traded on a trading venue shall take place on a regulated market, MTF, or systematic internalizer, or a third-country trading venue assessed as equivalent in accordance with Article 25(4)(a) of Directive 2014/65/EU, as appropriate, unless their characteristics include that they:
a) are non-systematic, ad-hoc, irregular and infrequent; or
b) are carried out between eligible and/or professional counterparties and do not contribute to the price discovery process