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SIX nixes Scoach venture with Deutsche Börse

First Published 20th February 2013

The Swiss exchange said it would continue to focus on structured products but wanted to concentrate on developing the Swiss market.

Zurich - SIX said its Scoach joint venture for structured products with Deutsche Börse would end on June 30 but that it was still committed to developing the Swiss market in this area.

"The joint trading platform operated by SIX and Deutsche Börse for structured products in Switzerland and Germany is to be dissolved following a decision by SIX to terminate the cooperation agreement," SIX said in a statemet.

Stephan Meier, a spokesman for SIX, told Automated Trader that the original intent had been for the Swiss and German versions of Scoach to become integrated but that this had not happened.

The joint venture began in 2007.

"We always had differences in the market structure between the Swiss market and the German market," Meier said. "These differences became more distinct over the last few years so we now decided to terminate the joint venture and focus on the specific needs we have here in the Swiss market."

As an example, he noted that trading in Switzerland is more fully electronic and automated. "So this is one point which differs from the German markets, where you have specialists so it's not completely and fully electronic."

In a separate statement, SIX reaffirmed its commitment to structured products.

"Trading in structured products is strategically very important for SIX. We therefore intend to focus even more strongly on the needs of the issuer and the Swiss market as a whole in future and provide support with appropriate measures," said SIX CEO Christian Katz in the statement.

SIX said it will provide information on specific measures and the organisational structure of the exchange for structured products in Switzerland "at an appropriate time".