SIX expands ETF franchise
20 December 2023 Switzerland
Image: Elenathewise/stock.adobe.com
SIX has launched Quote-on-Demand Europe (QOD Europe), an extension to its exchange traded funds (ETF) franchise. The product is the first pan-European exchange-traded request-for-quote (RFQ) platform.
ETF QOD Europe allows clients to trade ETFs listed on a number of European primary exchanges, including the London Stock Exchange, Euronext Paris and Borsa Italiana.
The product takes the number of ETFs and exchange traded products (ETPs), tradable at the SIX Swiss Exchange, from 1700 to 6000, complementing its existing multilateral open order-book.
Through the product, SIX aims to accelerate transaction processing, lower execution fees, improve liquidity and reduce cost, along with improving the overall efficiency of cross-EU trading. QOD Europe also allows for best execution, the company says, with more than 95 per cent of trades on the platform executed at the European Best Bid Offer or above.
Using on-exchange straight-through-processing, including central counterparty (CCP) clearing into European central security depositories (CSDs), the product allows clients to take advantage of their established CCP. This enables increased settlement efficiency, counterparty risk elimination and cost optimisation, without the need for additional third-party connections.
SIX has worked with CCPs SIX x-clear, Cboe Clear Europe and LCH to clear all trades in ETF QOD Europe, including settlement instruction to local CSDs of each exchange listing and trading venue.
Christian Reuss, head of SIX Swiss Exchange, says: "The launch of ETF QOD Europe reaffirms our commitment to innovation, providing a unique, cross-market trading experience for our users. We believe this service will set a new standard in the European ETF landscape.
“ETF QOD Europe not only expands the variety of ETF products available but also addresses the need for a greater variety of execution mechanisms to satisfy best execution in ETF trading. The service offers a high level of liquidity, execution quality, and pricing, making it a game-changer for both traders and asset managers."
Laura Bayley, head of SIX x-clear, comments: “By supporting the ETF QOD Europe service, we empower our members with access to diverse markets and simplified clearing and settlement processes. The interoperable collaboration with our partner CCPs ensures a streamlined settlement process, eliminating counterparty risk and providing significant cost optimisation benefits.”
ETF QOD Europe allows clients to trade ETFs listed on a number of European primary exchanges, including the London Stock Exchange, Euronext Paris and Borsa Italiana.
The product takes the number of ETFs and exchange traded products (ETPs), tradable at the SIX Swiss Exchange, from 1700 to 6000, complementing its existing multilateral open order-book.
Through the product, SIX aims to accelerate transaction processing, lower execution fees, improve liquidity and reduce cost, along with improving the overall efficiency of cross-EU trading. QOD Europe also allows for best execution, the company says, with more than 95 per cent of trades on the platform executed at the European Best Bid Offer or above.
Using on-exchange straight-through-processing, including central counterparty (CCP) clearing into European central security depositories (CSDs), the product allows clients to take advantage of their established CCP. This enables increased settlement efficiency, counterparty risk elimination and cost optimisation, without the need for additional third-party connections.
SIX has worked with CCPs SIX x-clear, Cboe Clear Europe and LCH to clear all trades in ETF QOD Europe, including settlement instruction to local CSDs of each exchange listing and trading venue.
Christian Reuss, head of SIX Swiss Exchange, says: "The launch of ETF QOD Europe reaffirms our commitment to innovation, providing a unique, cross-market trading experience for our users. We believe this service will set a new standard in the European ETF landscape.
“ETF QOD Europe not only expands the variety of ETF products available but also addresses the need for a greater variety of execution mechanisms to satisfy best execution in ETF trading. The service offers a high level of liquidity, execution quality, and pricing, making it a game-changer for both traders and asset managers."
Laura Bayley, head of SIX x-clear, comments: “By supporting the ETF QOD Europe service, we empower our members with access to diverse markets and simplified clearing and settlement processes. The interoperable collaboration with our partner CCPs ensures a streamlined settlement process, eliminating counterparty risk and providing significant cost optimisation benefits.”
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