Market Making Schemes

Market Making schemes refer to the trading venue's duty to identify market making strategies of its trading participants (MiFID II only) and to provide and enforce written agreements with those participants that trigger the obligation (FMIA and MiFID II).

While European law requires market making schemes for equity instruments only, Swiss regulation includes all other asset classes as well.

Our approach

SIX Swiss Exchange already has defined agreements for Market Makers in place for the ETFs, SFS, SF and Structured Products segments and will continue and extend incentive schemes for Liquidity Providers in all segments.

SSX trading segments Market Making and Incentive Schemes
Equities Obligations and incentive scheme for Liquidity Providers - no change
SFS Market Making agreements - no change
ETF / ETSF / ETP / SF Market Making agreements - no change
IF Abolish Market Making agreements for funds with Assets below CHF 100m - new!
CHF / Non-CHF Bonds Incentive scheme for Liquidity Providers - new!
Structured Products Incentive scheme for Liquidity Providers and Market Making agreements for AMC, floored floaters, alternative investments and COSI - no change
Service / venue Market Making and Incentive Schemes
SLS No Market Making or Incentive Schemes applicable - no change
SCB No Market Making or Incentive Schemes applicable - no change
XBTR No Market Making or Incentive Schemes applicable - no change

We believe the approach outlined is fully compliant with Swiss law and aligned to the principles of EU law but is subject to regulatory approvals.

Implementation is scheduled for SMR7 (2017).

Swiss Regulation

European Regulation

Q&A